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
    Brit nabbed at AIA fined $60,000 for cocaine
    Front Page
    Brit nabbed at AIA fined $60,000 for cocaine
    Webmaster 
    March 27, 2026
    A 19- year- old citizen United Kingdom citizen who was nabbed with cocaine at the Argyle International Airport (AIA) was fined a total of $60,000 for ...
    No official report of local fishers accosted by US Coast Guard says National Security Minister
    Front Page
    No official report of local fishers accosted by US Coast Guard says National Security Minister
    Webmaster 
    March 27, 2026
    There has been no official report that Vincentian fishermen plying their trade in this country’s Exclusive Economic Zone were accosted by United State...
    Opposition Leader rebukes Education Minister over remarks about teachers
    Front Page
    Opposition Leader rebukes Education Minister over remarks about teachers
    Webmaster 
    March 27, 2026
    Former Prime Minister Dr Ralph Gonsalves, has taken issue with recent statements made by Minister of Education Phillip Jackson about teachers. Speakin...
    Three violent deaths in three days
    Front Page
    Three violent deaths in three days
    Webmaster 
    March 27, 2026
    Three men were violently killed in three days in three separate incidents in St Vincent and the Grenadines (SVG), bringing the homicide count to 10 fo...
    Assistant Police Commissioner warns about “romanticising disorder”
    Front Page
    Assistant Police Commissioner warns about “romanticising disorder”
    Webmaster 
    March 27, 2026
    Adults across St. Vincent and the Grenadines (SVG) have been urged to take early warning signs of bad behaviour in children seriously, warning that ig...
    Barrouallie man charged in chopping death of Mont-I
    Front Page
    Barrouallie man charged in chopping death of Mont-I
    Webmaster 
    March 27, 2026
    A Barrouallie man is now on remand after he was charged with the chopping death of soca artiste and well-known social media personality, Mont-I. Keon ...
    News
    Government says students not returning after studies is worrying
    News
    Government says students not returning after studies is worrying
    Webmaster 
    March 27, 2026
    There is a worrying trend in St Vincent and the Grenadines (SVG) where students who leave these shores to pursue studies overseas are not returning, c...
    History of SVG sold out at Launch
    News
    History of SVG sold out at Launch
    Webmaster 
    March 27, 2026
    The launch of Volume One of ‘St.Vincent and the Grenadines: A General History to the Year 2025’ was well received by the Vincentian public as almost 3...
    No truth to it, says Minister of Higher Education
    News
    No truth to it, says Minister of Higher Education
    Webmaster 
    March 27, 2026
    Minister of Higher Education, Terrance Ollivierre has refuted claims that Vincentian university students are being disadvantaged due to the non- payme...
    Taiwan to help boost SVG’s National Security
    News
    Taiwan to help boost SVG’s National Security
    Webmaster 
    March 27, 2026
    The national security mechanisms in St Vincent and the Grenadines (SVG) are expected to benefit as a result of policy visits made to the National Poli...
    Technical Institutes Promote Hands-On Training Amid Participation Concerns
    News
    Technical Institutes Promote Hands-On Training Amid Participation Concerns
    Webmaster 
    March 27, 2026
    Other than the Division of Technical/Vocational Education of the St Vincent and the Grenadines Community College (SVGCC), there are five technical Ins...

    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