Britain will lose out on £9.3 billion, says BTA report

Thursday, 21 Nov, 2002 0

If UK airports are not expanded or new ones are not built by 2030, the British economy will lose out on £9.3 billion, according to a BTA report.

BTA has teamed up with Caledonian Economics to calculate the effects of limiting the growth of domestic tourism. Following some extensive number crunching, BTA has estimated that if no extra airport capacity is added in Britain by 2030, demand for travel to Britain will outgrow capacity by 73 million passengers. According to BTA, the average visitor spends £900 on a trip to Britain (£400 to get there and £500 on products and services), and once inflation is added, the net loss in revenue would apparently be £9.3 billion per annum.

Following further statistical analysis, BTA claims that one new job is created in the UK for every £40,600 of revenue from inbound tourism. If their figures of lost revenue in the years to 2030 are correct, this would result in a loss of 230,000 full-time jobs.

BTA claims that the counter argument, which states that reducing airport capacity will encourage Brits to holiday at home, is flawed. BTA head of policy, Kurt Janson said: “Our modelling shows that British travellers will out-compete overseas visitors for available space on flights if capacity is restricted, resulting in an even larger tourism deficit”.

The UK Department for Transport is considering a number of options for increasing Britain’s airport capacity, including extra runways for airports in the South East, and a new airport in Kent. The consultation period will be over at the end of the month, after which the government is expected to produce a White Paper.

A BTA spokesperson said: “BTA is not supporting a particular plan, we think that is a government choice. We just agree with the need for extra capacity.” ABTA has stated that it is against a new airport at a site in Kent due to environmental and cost concerns, and instead supports extra capacity at Heathrow, Gatwick and Stansted.

Read our previous stories:
24-July-2002 Mixed reactions to airport expansion plans
18-Oct-2002 ABTA against new airport in the South East