Searchlight Logo
special_image

    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
Our Readers' Opinions
May 14, 2013

Negative economic impacts of an international airport: from a tourism development perspective

Tue May 14, 2013

by ©Kenrick Chambers

The opportunity and possibility for St Vincent and the Grenadines to develop a sustainable tourism industry would considerably increase with an international airport. The country would be more accessible, and therefore take advantage of its natural resources — sun, sea and sand, with the conjecture that the tourism sector will improve with enhanced air accessibility. But there is a price to pay.{{more}} There are negative economic impacts from building an international airport.

The United Nations Environment Programme on Resource Efficiency and Sustainable Consumption and Production stated: “There are many hidden costs to tourism, which can have unfavorable economic effects on the host community.”

Frequently, rich countries are more inclined to profit from tourism than poorer countries. While least-developed countries have the most imperative need for income, employment and overall rise of the standard of living by means of tourism, third-world nations are least able to benefit from the development. The primary reason why less developed countries do not benefit from tourism development is the large-scale transfer of tourist revenues out of the host country and exclusion of local businesses and products — also known as economic leakage.

Economic leakage occurs when tourist spending goes to airlines, hotels, and international companies that are usually foreign; consequently, most of the spending does not circulate to local businesses and workers. For example, a study of tourism leakage, conducted by Sustainable Living, shows that 80 per cent of the money spent by tourists in the Caribbean ends up in the pockets of foreign-owned tour operators, airlines, hotels, imported beverages and food companies.

Leakages arise in two ways — generally: import leakage and export leakage.

Commonly, import leakage occurs when tourists demand standards of equipment, food, and other products that the host country cannot supply. Especially in less-developed countries, food and drinks are imported, since local products are not up to the hotel’s (i.e. tourist’s) standards or the country simply doesn’t have a supplying industry. Therefore, much of the income from tourism expenditures leaves the country to purchase imported commodities.

In developing countries, most of the infrastructural development projects (e.g. resorts, hotels, construction, etc) are usually financed by large foreign corporations, and accordingly they take their profit back to their home country (headquarters) — as a result, export leakage transpires.

Other negative impacts of an international airport are: infrastructure cost; inflation; and environmental.

“Tourism development can cost the local government and local taxpayers a great deal of money,” echoes the United Nations. Already evident in the case of SVG, for example, airport departure tax increased, and Prime Minister Dr Ralph Gonsalves presented Parliament with an EC$799.1 million national budget, encumbered with increased taxes — the inheritance — Vincentian taxpayers. Another costly impact is: developers (hotels and airlines) usually request that infrastructure, such as roads and airports, be improved, which can be expensive to taxpayers in developing countries.

Additionally, another pricy undesirable impact can present itself via inflation. I will clarify — due to tourism development, inflation can ensue when increased demand for goods and services by tourists increases local commodity prices, and, as a result, local residents whose wages do not adjust, therefore, would have to pay higher prices for goods and services.

Another adverse impact of an international airport is the environmental sacrifice. For instance, the assessment conducted by the German firm (KOCKS Consult GMBH) for the Argyle international airport specified “…off-site operation impact may affect legally protected migratory and resident species of birds at Milligan Cay, which lies in the direct approach corridor of aircraft.” Also, noise pollution is an undesirable effect of an international airport — particularly on children’s health and development. A study inspecting the impact of airport noise on children’s health found higher blood pressure in children living near Los Angeles’ LAX airport than in those living farther away. Moreover, a German study (1995) found there is a strong correlation between chronic noise exposure at Munich’s International Airport and elevated nervous system activity and cardiovascular levels in children living nearby.

Nonetheless, with unfavourable economic impacts and environmental issues looming SVG, there are pros and cons in every situation — therefore there are positive impacts which can be beneficial if the appropriate panacea of fiscal, monetary, and environmental policies are implemented by the government.

Next, the Positive Economic Impacts of an international airport

  • FacebookComments
  • ALSO IN THE NEWS
    Family wants justice for man who died after falling from building
    Front Page
    Family wants justice for man who died after falling from building
    Forrest 
    March 10, 2026
    The funeral service for the construction worker who died after falling from a building under construction in Villa earlier this month, was punctuated ...
    NDP gov’t placing the nation’s airports high on their agenda
    Front Page
    NDP gov’t placing the nation’s airports high on their agenda
    Forrest 
    March 10, 2026
    Airports are critical infrastructure for tourism and the economy, and with that in mind, the new administration has placed the nation’s airports high ...
    Issue involving dual citizenship of MPs is ‘not a frivolous matter’
    Front Page
    Issue involving dual citizenship of MPs is ‘not a frivolous matter’
    Forrest 
    March 10, 2026
    Opposition Leader, Dr. Ralph Gonsalves has publicly disagreed with Prime Minister Dr. Godwin’s Friday’s position on a matter which is now before the c...
    Unite to end discrimination and disrespect – SIPA Chair
    Front Page
    Unite to end discrimination and disrespect – SIPA Chair
    Forrest 
    March 10, 2026
    People who live communities in the North Windward Constituency are being encouraged to unite in an effort to end discrimination and disrespect. That c...
    Dr Ralph Gonsalves is Senior Advisor of ‘Repair’ Campaign
    Front Page
    Dr Ralph Gonsalves is Senior Advisor of ‘Repair’ Campaign
    Forrest 
    March 10, 2026
    Former Prime Minister Dr. Ralph Gonsalves, is now a Senior Advisor and Elder for The Repair Campaign, lending his expertise to the regional reparation...
    FAO seeking solutions to protect the Caribbean Spiny Lobster
    Press Release
    FAO seeking solutions to protect the Caribbean Spiny Lobster
    Forrest 
    March 10, 2026
    Across the Caribbean, thousands of fishers rely on the spiny lobster for income and food security. However, the fishery is increasingly under threat f...
    News
    Facilities were not available to host Americas Netball Qualifiers, says PM
    News
    Facilities were not available to host Americas Netball Qualifiers, says PM
    Forrest 
    March 10, 2026
    Prime Minister Dr. Godwin Friday said the facilities were not available to host the Netball Americas World Cup Qualifiers at Arnos Vale that were slat...
    Opposition Leader tells PM Friday don’t develop ‘amnesia’
    News
    Opposition Leader tells PM Friday don’t develop ‘amnesia’
    Forrest 
    March 10, 2026
    Opposition Leader, Dr. Ralph Gonsalves is cautioning Prime Minister Dr. Godwin Friday not to get amnesia regarding past conduct instigated or supporte...
    SVG likely to face higher energy costs within 12 months – PM
    News
    SVG likely to face higher energy costs within 12 months – PM
    Forrest 
    March 10, 2026
    Prime Minister, Dr. Godwin Friday, outlined several regional and international matters during a press conference on March 3, 2026, following the 50th ...
    US$ 50 million for water improvements in SVG
    News
    US$ 50 million for water improvements in SVG
    Forrest 
    March 10, 2026
    Prime Minister, Dr. Godwin Friday, has announced a major climate resilience and water infrastructure initiative valued at approximately US$50 million,...
    Caribbean countries phase out Cuban doctors; French hospital welcomes them
    News
    Caribbean countries phase out Cuban doctors; French hospital welcomes them
    Forrest 
    March 10, 2026
    As pressure from the United States forces Caribbean governments to alter plans utilizing Cuban medical personnel, a hospital in France is planning to ...

    E-EDITION
    ePaper
    google_play
    app_store
    Subscribe Now
    • Interactive Media Ltd. • P.O. Box 152 • Kingstown • St. Vincent and the Grenadines • Phone: 784-456-1558 © Copyright Interactive Media Ltd.. All rights reserved.
    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok