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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