Tue May 28, 2013
by Kenrick Chambers
Let’s face it, the metamorphosis of globalization is upon us. People, companies, and nations are integrating and interacting more. The movement of services and goods globally requires logistical infrastructure that would accommodate the rapid pace of an integrated world. Hence, an international airport is a major apparatus of a nation’s infrastructure to generate economic activities such as international trade and tourism. International airports offer increased accessibility, which in turn fuels the tourism sector. With an increase in the number of visitors and airport users, more money flows into the local economy.{{more}}
Countries that possess an international airport have greater economies (measured by GDP). Although there are geographical and population variations, however, the constant variable that categorizes their economy, as measured by GDP, respectively, is the type of airport they possess â those with international (airports that can accommodate intercontinental flight) â and those without international airports.
Other positive impacts are direct and multiplier impacts. Direct impacts are economic activity generated by airports, â such as the purchase of aviation goods and services, and spendings of airline passengers passing through the region. Multiplier impacts, however, result from the re-circulation and re-spending of direct impacts within the economy. This re-spending of cash can transpire multiple times and takes two forms â indirect and induced. Indirect impacts occur when businesses spend their revenue on expenses, whereas induced impacts occur when employees purchase goods and services. For example, as airport employees spend their salary for housing, food, and services, those expenditures circulate through the economy, resulting in increased spending throughout the economy. So, accordingly, the probability that the economy of St Vincent and the Grenadines will grow because of an international airport is favourable.
In closing, the positive impact of an international airport on a country’s economy goes well beyond the airport fence. We’re in the midst of globalization, and St Vincent and the Grenadines, with its natural beauty (sun-sea-and sand), has the potential of becoming one of leading tourist destinations of the world. So, while the capital project is beyond the scope of all previous ventures, â the largest thus far â the project is essential for the development of the Land of the Blessed.
(“The negative impacts of an international airport: from a tourism development perspective,â by Kenrick Chambers, was published in SEARCHLIGHT on May 14, 2013)