AVIATION, THE ECONOMY AND REGIONAL REGENERATION

Will airport expansion assist in regenerating the regions ?

The most comprehensive study done anywhere in Europe into the connection between transport provision and economic performance paints a different picture. The government-sponsored SACTRA Report, 1999, astonishingly virtually ignored by civil servants when drawing up the Regional Air Studies, suggests that it is only in particular circumstances that new airport infrastructure will have a significant role in promoting regional regeneration.

The government's Standing Advisory Committee on Trunk Road Assessment (SACTRA) examined the links between transport provision in general and economic activity (SACTRA, 1999). Although the report concentrated on road building, the authors made it clear that their findings were applicable to all forms of transport infrastructure.

What the SACTRA Report said

• there is no simple link between the provision of transport infrastructure and regional regeneration
• non-transport factors in a region (such as the availability of skilled labour) are usually a more critical factor in regenerating a region than transport infrastructure
• there would be winners and losers when new transport infrastructure is built - strong areas may gain improved access to weaker areas, which in turn may suffer job losses./
• in a mature economy which already has a well-developed transport system (such as the UK) any increase in economic growth from improved transport is likely to be modest.

Regions need to decide if :

• an expanded airport is really required to serve their business community - remember only 20% of trips are for business purposes
• whether an increase in air services will really boost local business. The amount of air travel is surely a function of the level of business activity, not the other way round
• an expanded airport would simply mean more local people took their holidays abroad, more than off-setting any increase in the number of holidaymakers flying in
• other less heavily-subsidised industries may bring about regeneration at a much lower cost to the taxpayer than developing an airport

Links to other pages on economics

Links to related pages