Air transport has key role in economic development
Cardiff Airport has a major role to play in the growth of the Welsh economy, according to Patrick Duffy, the airport’s managing director.
Mr Duffy told the Cardiff Tourism Network that a renewed emphasis on incoming flights would fit the long-term economic strategy of the Welsh Government. The airport has historically relied heavily on outbound leisure traffic.
Mr Duffy said the interests of the airport and the Welsh economy were closely aligned. The conventional view has been that economic growth is linked to airport route availability. He said: “In fact, on the one hand the airport relies on economic growth to drive its expansion and on the other hand strategic route development enhances local business activity. If businesses are willing to visit the city for conferences or to bring their work to Cardiff, then airlines are likely to respond to that and its future potential.
“Our interests are best served if we focus on the macro-economic conditions within the region. That is what provides the key indicator for travel demand.” He said the conditions for growth included a willingness for Government to step in to address market opportunities.
Outbound leisure flights accounted for 80% of the airport’s business in the 1980s and 1990s. Inbound growth has helped to reduce this reliance to around 65%.
To maintain this trend, Mr Duffy said it was increasingly important for devolved governments to consider how sustainable air transport connectivity plays a role in the development of regional economic policy.
He added: “Following the announcement of bmibaby that it will be withdrawing from South Wales (and other regions) and following several years of traffic decline we must look to stimulating air transport routes which through connectivity offer South Wales access to inbound tourism and business demand.
“We have seen that the routes operated by airlines at Cardiff Airport have proved sustainable and progressive, where airlines successfully generate demand for passengers originating outside of Wales.
“Examples of this include continued route activity with airlines such as KLM, Flybe and Aer Lingus. There is of course a continued strong demand for outbound leisure travel, but economic policy in Wales needs to target strategically important route connections which offer opportunity for tourism and inward investment plans to be enhanced.
“Although bmibaby, as a low cost carrier, generated the majority of its traffic (over 90%) in outbound leisure activity, its absence from the region proves a challenging outlook for airport volume going forward. Nevertheless both airport and devolved economic policy needs to look at sustainable route development which emphasises demand for both leisure and business travel into South Wales.”
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08/07/2011
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