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
      • Privacy Policy
      • 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
      • Privacy Policy
      • 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
    NDP romps home 14-1
    Front Page
    NDP romps home 14-1
    Webmaster 
    November 28, 2025
    THE PEOPLE SPOKE emphatically in Thursday’s general elections in St Vincent and the Grenadines (SVG)propelling the New Democratic Party (NDP) into the...
    ULP’s ‘Come Home Rally’ attracts thousands
    Front Page
    ULP’s ‘Come Home Rally’ attracts thousands
    Webmaster 
    November 28, 2025
    A MAMMOTH CROWD thronged the Arnos Vale 2 Playing Field for the ‘Come Home Labour Family’ rally of the Unity Labour Party (ULP) as it closed out the 2...
    Political Parties close out elections campaign with big entertainers
    Front Page
    Political Parties close out elections campaign with big entertainers
    Webmaster 
    November 28, 2025
    “THE WIND OF change is blowing throughout this land,” declared Dr Godwin Friday, leader of the New Democratic Party. He was speaking at the party’s cl...
    Front Page
    NMCM: main polling day complaint, long lines
    Webmaster 
    November 28, 2025
    VOLUNTEERS UNDER THE auspices of the National Monitoring and Consultative Mechanism (NMCM), who have been monitoring the general elections campaign, h...
    Jamaica’s Andrew Holness Congratulates Dr. Friday
    Press Release
    Jamaica’s Andrew Holness Congratulates Dr. Friday
    Webmaster 
    November 28, 2025
    EVEN BEFORE his swearing in as prime minister, regional leaders have been sending messages of congratulations to Dr Godwin Friday on the victory of hi...
    Regional leaders send congratulations to Dr. Friday
    News
    Regional leaders send congratulations to Dr. Friday
    Webmaster 
    November 28, 2025
    TRINIDAD ANDTOBAGO’S Prime Minister, Kamla Persad Bessesar, was also among regional leaders to send early congratulations to Dr. Godwin Friday. “Tonig...
    News
    Regional leaders send congratulations to Dr. Friday
    News
    Regional leaders send congratulations to Dr. Friday
    Webmaster 
    November 28, 2025
    TRINIDAD ANDTOBAGO’S Prime Minister, Kamla Persad Bessesar, was also among regional leaders to send early congratulations to Dr. Godwin Friday. “Tonig...
    Online educator drops in on students at St Vincent Grammar School
    News
    Online educator drops in on students at St Vincent Grammar School
    Webmaster 
    November 28, 2025
    BY GRACE FRANCIS WITH A VIEW to setting foot in every country in the Caribbean, online educator, Kerwin Springer, of Trinidad and Tobago paid a visit ...
    Party leaders travelled north on Thursday
    News
    Party leaders travelled north on Thursday
    Webmaster 
    November 28, 2025
    LEADER OFTHE Unity Labour Party (ULP), Dr Ralph Gonsavles, and leader of the New democratic Party (NDP), Dr Godwin Friday both went to constituencies ...
    Calvert Jones recognized by the OAS
    News
    Calvert Jones recognized by the OAS
    Webmaster 
    November 28, 2025
    A PRESENTATION BY Vincentian artist, Calvert Jones at the 10th Inter-American Meeting of Ministers of Culture and Highest Appropriate Authorities puts...
    From the Courts, News
    Teenage thief activates $900 bond, sent to prison
    Webmaster 
    November 28, 2025
    A TEENAGER, who used another person’s vehicle without permission and was bonded in the sum of $900, is now imprisoned for four months for stealing fro...

    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