THOUGHT LEADERSHIP
The economic importance of air route development as the Routes Europe Conference flies in to Belfast
by Dr Peter Bolan, Ulster University Department of Hospitality and Tourism Management
I
n the modern world in which we live, air connectivity is vital to any country’ s economic growth and development. When it comes to crucially important industries like tourism then this is even more pertinent.
With Belfast playing host to a major international conference on air route development( Routes Europe) on the 23 25th April, this is a fantastic achievement with enormous potential for Northern Ireland.‘ Routes Europe’ is essentially the air route development forum for Europe and draws together a range of airlines, airport authorities, tourism bodies and indeed anyone with a vested interest in conducting business to, from and within Europe.
Last year’ s conference( now in its 13th year) took place in Krakow( following Aberdeen in 2015 and Marseille in 2014) and saw some 1200 delegates attend, with 125 airlines, over 300 airports and 45 tourism authorities represented.
Make no mistake then, this is a big deal and a hugely significant conference event to have secured.
Air connectivity is hugely significant not just for tourism development but the economy of a country in general.
According to Oxford Economics visitors arriving by air contribute over £ 12 billion a year to the UK tourism industry, generating a further 170,000 jobs; 55 per cent by value of the UK’ s manufactured exports to countries outside the EU are transported by air; air services have been vital in developing economic relationships with emerging economies such as China; and a quarter of companies report that access to air services is important in determining where they locate their operations in the UK.
Clearly, air route development is important for tourism but also the wider economy in the UK. Here in Northern Ireland there is no question that air route development needs to be higher on the agenda and taken even more seriously.
We are in many respects a peripheral location in Europe and yet connectivity and access to markets are absolutely crucial to economic development( including tourism).
Research indicates that businesses trade 20 times as much with countries that have a direct daily flight to that country, as they do with those countries that do not.
Other studies have shown air links as the most influential transport factor in the location decisions of most overseas based business investing in the UK.
On the tourism front, air route development is vital if we are to continue to grow as a destination. Including direct, indirect, and induced effects, air transport on a global basis supports 35 million jobs within tourism, contributing around $ 807 billion a year to world GDP( according to the WTTC).
Our peripheral location hinders how far we can develop as tourism destination in Northern Ireland. Having to take several flights to get here can be offputting as well as expensive for many international tourists. Developing direct flight routes with the right markets can help address that and allow us to continue to grow as a destination.
It may sound like a nobrainer, but it’ s often easier said than done of course. Such endeavours can be incredibly challenging. Airlines want to know that a route is commercially viable before they will even consider it.
Support from government in terms of air route development funds can certainly help in that regard, as well as support from tourism bodies and the wider business sector. Then we have the issue of Air Passenger Duty( APD). A policy introduced in back in 1994 and the subject of some controversy in Northern Ireland in recent times.
This was brought to the fore in recent
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