Searchlight Logo
special_image

    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
Our Readers' Opinions
May 14, 2013

Negative economic impacts of an international airport: from a tourism development perspective

Tue May 14, 2013

by ©Kenrick Chambers

The opportunity and possibility for St Vincent and the Grenadines to develop a sustainable tourism industry would considerably increase with an international airport. The country would be more accessible, and therefore take advantage of its natural resources — sun, sea and sand, with the conjecture that the tourism sector will improve with enhanced air accessibility. But there is a price to pay.{{more}} There are negative economic impacts from building an international airport.

The United Nations Environment Programme on Resource Efficiency and Sustainable Consumption and Production stated: “There are many hidden costs to tourism, which can have unfavorable economic effects on the host community.”

Frequently, rich countries are more inclined to profit from tourism than poorer countries. While least-developed countries have the most imperative need for income, employment and overall rise of the standard of living by means of tourism, third-world nations are least able to benefit from the development. The primary reason why less developed countries do not benefit from tourism development is the large-scale transfer of tourist revenues out of the host country and exclusion of local businesses and products — also known as economic leakage.

Economic leakage occurs when tourist spending goes to airlines, hotels, and international companies that are usually foreign; consequently, most of the spending does not circulate to local businesses and workers. For example, a study of tourism leakage, conducted by Sustainable Living, shows that 80 per cent of the money spent by tourists in the Caribbean ends up in the pockets of foreign-owned tour operators, airlines, hotels, imported beverages and food companies.

Leakages arise in two ways — generally: import leakage and export leakage.

Commonly, import leakage occurs when tourists demand standards of equipment, food, and other products that the host country cannot supply. Especially in less-developed countries, food and drinks are imported, since local products are not up to the hotel’s (i.e. tourist’s) standards or the country simply doesn’t have a supplying industry. Therefore, much of the income from tourism expenditures leaves the country to purchase imported commodities.

In developing countries, most of the infrastructural development projects (e.g. resorts, hotels, construction, etc) are usually financed by large foreign corporations, and accordingly they take their profit back to their home country (headquarters) — as a result, export leakage transpires.

Other negative impacts of an international airport are: infrastructure cost; inflation; and environmental.

“Tourism development can cost the local government and local taxpayers a great deal of money,” echoes the United Nations. Already evident in the case of SVG, for example, airport departure tax increased, and Prime Minister Dr Ralph Gonsalves presented Parliament with an EC$799.1 million national budget, encumbered with increased taxes — the inheritance — Vincentian taxpayers. Another costly impact is: developers (hotels and airlines) usually request that infrastructure, such as roads and airports, be improved, which can be expensive to taxpayers in developing countries.

Additionally, another pricy undesirable impact can present itself via inflation. I will clarify — due to tourism development, inflation can ensue when increased demand for goods and services by tourists increases local commodity prices, and, as a result, local residents whose wages do not adjust, therefore, would have to pay higher prices for goods and services.

Another adverse impact of an international airport is the environmental sacrifice. For instance, the assessment conducted by the German firm (KOCKS Consult GMBH) for the Argyle international airport specified “…off-site operation impact may affect legally protected migratory and resident species of birds at Milligan Cay, which lies in the direct approach corridor of aircraft.” Also, noise pollution is an undesirable effect of an international airport — particularly on children’s health and development. A study inspecting the impact of airport noise on children’s health found higher blood pressure in children living near Los Angeles’ LAX airport than in those living farther away. Moreover, a German study (1995) found there is a strong correlation between chronic noise exposure at Munich’s International Airport and elevated nervous system activity and cardiovascular levels in children living nearby.

Nonetheless, with unfavourable economic impacts and environmental issues looming SVG, there are pros and cons in every situation — therefore there are positive impacts which can be beneficial if the appropriate panacea of fiscal, monetary, and environmental policies are implemented by the government.

Next, the Positive Economic Impacts of an international airport

  • FacebookComments
  • ALSO IN THE NEWS
    Gov’t to pay bonuses by January30
    Front Page
    Gov’t to pay bonuses by January30
    Webmaster 
    January 27, 2026
    THE DR. GODWIN FRIDAY administration will be making bonus payments to an estimated 12,000 public workers, and that money will be paid by Friday, Janua...
    Opposition Leader writes to Speaker on questions she deems inadmissible
    Front Page
    Opposition Leader writes to Speaker on questions she deems inadmissible
    Webmaster 
    January 27, 2026
    LEADER OFTHE OPPOSITION Dr. Ralph Gonsalves has written to the Speaker of the House of Assembly, Ronnia Durham-Balcombe, concerning her ruling of the ...
    Workers frustrating resumption of Covid-dismissed workers, says PM
    Front Page
    Workers frustrating resumption of Covid-dismissed workers, says PM
    Webmaster 
    January 27, 2026
    SOME GOVERNMENT workers are making it hard for people who were fired under the COVID-19 vaccine mandate to return to work, and this is unacceptable, P...
    Woman overcomes spotty school attendance, graduates university
    Front Page
    Woman overcomes spotty school attendance, graduates university
    Webmaster 
    January 27, 2026
    A YOUNG VINCENTIAN, who was unable to attend both primary and secondary school on a regular basis due to financial difficulties, has overcome the odds...
    Government to close Milton Cato Memorial Hospital
    Front Page
    Government to close Milton Cato Memorial Hospital
    Webmaster 
    January 27, 2026
    MINISTER OF HEALTH, Daniel Cummings, has lauded the health infrastructure in St Vincent and the Grenadines (SVG), and disclosed that the New Democrati...
    SVG Cadets plan virtual reunion as part of 90th anniversary activities
    Front Page
    SVG Cadets plan virtual reunion as part of 90th anniversary activities
    Webmaster 
    January 27, 2026
    THE STVINCENT ANDTHE Grenadines (SVG) Cadet Corps plans to engage with former members, and host a stakeholder reunion as part of year-long activities ...
    News
    Grimble Hall demolished, new structure being erected
    News
    Grimble Hall demolished, new structure being erected
    Webmaster 
    January 27, 2026
    All refurbishment work on Grimble Hall at Girls’ High School (GHS) Grimble has ceased and the building demolished due to structural and other concerns...
    Unemployed persons could receive a benefit from the NIS
    News
    Unemployed persons could receive a benefit from the NIS
    Webmaster 
    January 27, 2026
    UNEMPLOYED PERSONS in St Vincent and the Grenadines (SVG), may be able to receive benefits from the National Insurance Services (NIS) at some point in...
    Vincentian found hanging in Antigua
    News
    Vincentian found hanging in Antigua
    Webmaster 
    January 27, 2026
    VINCENTIAN, MICHAELIA RENEISHA WILLIAMS, a woman who was described by her neighbours as quiet and reserved, was said to be found hanging in her Jennin...
    Opposition leader prepared to don his legal gown again
    News
    Opposition leader prepared to don his legal gown again
    Webmaster 
    January 27, 2026
    OPPOSITION LEADER Dr. Ralph Gonsalves, has made known that he still has a license to practice law, and he does not have a problem going to court to de...
    Covid dismissed workers given deadline – backpay deferred pending review
    News
    Covid dismissed workers given deadline – backpay deferred pending review
    Webmaster 
    January 23, 2026
    PUBLIC SERVANTS who were dismissed for refusing to take the COVID-19 vaccine will not be allowed to return to their jobs after January 30, 2026. And, ...

    E-EDITION
    ePaper
    google_play
    app_store
    Subscribe Now
    • Interactive Media Ltd. • P.O. Box 152 • Kingstown • St. Vincent and the Grenadines • Phone: 784-456-1558 © Copyright Interactive Media Ltd.. All rights reserved.
    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok