The Role of Airports Todays Society - Coursework Example

THE ROLE OF AIRPORTS TODAY’S SOCIETY The Role of Airports Today’s Society Introduction The aviation industry plays a significant role in today’s society where globalization has created high level of dependency among national economies. As such, there has been growing need for an effective link between different economies of the world. The aviation industry provides an ultimate answer to the call for an efficient transport system that resonates with the demands of a globalized world. Every country around the world has airports, but how do they contribute to the welfare of the modern society? Airports play a major role in societies today by providing job opportunities and facilitating global movement of people as well as goods. Airports are crucial terminus in air transport. As an integral part of globalization, the aviation industry is a crucial facilitator of foreign direct investment, tourism, and international trade. This paper explores how airports can be direct and indirect catalyst to the growth of national economy. Airports as Catalyst for Growth National Economy Airports are major accelerators of the growth of national economies in many ways. They contribute significantly to the growth of welfare of societies and stimulate economic activities across the country, spurring economic growth. The aviation industry contributes both directly and indirectly to the growth of the national economy. Direct Contribution of Airports to the Growth of National Economy The aviation industry is a key direct creator of employment in various national economies. Airports create employment opportunity for a dozens of citizens who would otherwise be jobless. Airports also facilitate vibrant economy by directly generating economic activities for numerous people in the country. Airports create job opportunities for potential pilots and flight crew. They also create others numerous job opportunities such as aircraft maintenance, management opportunities, passenger attendant jobs for hostesses, passenger check-in, language handling and inspection and catering services among others. Aircraft engineers among other aviation professionals are guaranteed job opportunities with the existence of airports (Ashford, Mumayiz & Wright 2011). The aviation industry is a major employer in all the economies of the world. According to Air Transport Action Group, “The world’s airlines carry over 2.6 billion passengers a year and 48 million tonnes of freight. Providing these services generate 8.4 million direct jobs within the air transport industry and contribute $539 billion to global GDP” (2012 Para 3). Through provision of direct employment opportunities to jobless people in an economy, airports ensure high standards of living in various communities (Dempsey 2004). As such, airports are direct catalysts to economic development because they directly reduce unemployment level in a country. Further, they bring many citizens into tax sphere, thus governments can generate adequate revenues to steer development projects. In most countries, tax revenues are the major source of government revenue for which its lack would jeopardize economic development. By creating numerous employment chances, airports ensure the expansion of taxable incomes within a country, thus increasing government revenues generated from taxes (Dempsey 2004). Therefore, airports are crucial direct catalysts for economic development of countries. The aviation industry’s contribution to gross domestic product (GDP) outperforms other industries such as textile, pharmaceuticals, and automobile industries among others (Action Group 2012). According to Air Transport Action Group (2012), the global aviation industry would rank nineteenth in terms of GDP globally, if it were treated as a nation. Indirect Contribution of Airports to the Growth of National Economy Airports do not only spur the growth of national economies by creating direct job opportunities, but also through indirect employment to individuals in a country. Airports catalyze national economic growth in various ways. They stimulate economic activities in other sectors, increasing job opportunities and hence enhancing the contributions of different sectors towards national economic development. Airports stimulate the performance of construction, energy, tourism and commerce industries, which in turn lead to improvement in the performance of national economy. The construction of an airport will create job opportunities in building and construction industry. Construction firms will have the opportunity to bid for the contract of building the airport. Even though not all construction companies will succeed in getting the contract, the successful company will create employment opportunity for foremen and construction experts as well as for ordinary citizens who give a hand in the construction process. As such, airports have the potential to increase the performance of building and construction industry. During construction period, airports create job opportunities indirectly by increasing job opportunities for masses of jobless citizens (Hakizimana 2012). Therefore, the contribution of the building and construction to the national gross domestic product will significantly increase. This way, airports can be said to be significant catalysts to the growth of national economies. Also, airports existence means market opportunities for fuel suppliers. Aircrafts use fuel, which must be supplied by individuals or companies in the energy sector. Airports significantly trigger employment opportunities in the energy sector. Through increased demand for fuel for running aircrafts, people with driving qualifications can get jobs as truck drivers charged with the responsibility of delivering fuel to the airports. By providing market for fuel supplying companies, the government will receive higher tax revenues in the form of corporation tax and also income tax of individuals employed in the companies. As such, airports have high potential of increasing the overall performance of energy sector and hence contribution to the development of national economy (Air Transport Action Group 2012). Further, airports are terminals through which countries link up with each other. As such, they allow easy and fast movement of people across national boundaries (Ohaeri 2012). Tourism “directly contributed $1.8 trillion to world GDP in 2011 and supported over 99 million direct jobs globally — 3.4% of total employment” (Air Transport Action Group 2012 Para 9). Airports are major promoters of tourism by providing a comfortable means through which tourists can move to whichever place they want in the world (Martín-Consuegra, Molina & Esteban 2006). By ensuring constant availability of transport means for tourists, airports ensure regular inflow of tourists into a country. This earns the country foreign exchange and also triggers increased job opportunities for citizens in the tourism sector, especially during peak seasons (Martín-Consuegra, Molina & Esteban 2006). Airports indirectly contribute to the overall growth in national economy by stimulating economic activities in the tourism industry (Gőssling & Peeters 2007). Based on the data provided Air Transport Action Group (2012), more that 51 percent of global tourists travel by air. Tourism remains pivotal for economic development, especially in developing nations. In Africa, tourism sector directly employs about 2.5 million individuals. These jobs are supported by visiting international tourists, who travel by air (Air Transport Action Group 2012). Airports are requisites for tourism, which is a major driver for global economic growth. In developing nations, especially Africa, national economies significantly rely on tourism for growth. Airports are also crucial for the performance of agricultural sector. By connecting countries to one another, airports provide means through which perishable agricultural products can be ferried faster to foreign markets (Kinvig 2009). In Nigeria for example, airports ensure that the production of export goods such as cocoa and wheat is sustainable through providing reliable delivery system to foreign markets. About 70 percent of the country’s population is employed in the agricultural sector. Airports stimulate commercial agricultural activities and hence national economic growth (Bednarek & Bednarek 2003). Lastly, airports are a major contributor to global trade (Great Britain Parliament, House of Commons & Transport Committee 2013). The aviation industry promotes international trade, thus accelerating the growth and development of world economies. With present globalized world, countries have become so dependent on each other that no single nation can exist on its own. Airports provide the points through which countries link up when trading with each other. Despite the fact that other means of transports such as road, rail and sea transports also facilitate international trade, air transport offers faster and more reliable movement of people and goods across national borders (Kinvig 2009). Air transport is the most preferable way of transporting light, fragile, and perishable products across national boundaries. Imagine of a world with no aircraft, how long would it take people to travel millions of miles to do business or adventure new places? Would it be ever possible to transport perishable products across national boundaries? Airports have become integral part of the global supply chain and facilitate cross-border transportation of time sensitive products. Airports also trigger foreign direct investment (FDI) by improving connectivity between countries. Foreign direct investments, especially in developing countries, are crucial drivers for national economic growth. Airports attract the establishments of foreign firms, which in turn offer job opportunities to citizens. Conrady, Buck, Viehl and Tittel (2011) assert that “airports attract new companies and industry, thereby creating jobs” (p.56). Without airports, no foreign companies would be more willing to establish their operations in foreign economies, especially developing countries in Africa. Consequently there would be low or no foreign direct investments, which would negatively impact growth and development of national economies (Conrady, Buck, Viehl & Tittel 2011). As such, airports stimulate economic activities within national economies as well as in the global sphere. Without airports, air transport would never be possible. This would adversely affect world trade and eventually lead to stagnation of economies of the world. World trade is responsible for fast economic growth and development of world economies, particularly in developing and without airports, global trade would be more of a theory than realty. Two Examples Where Airports Plays a Crucial Role in the Society Airports are crucial development divers in different regions of the world. In the Europe for example, airports play significant roles in improving the welfare of societies and a promoting economic performance in the region. Concerning social development of the society, airports in Europe come with social benefits because they improve quality of life not only in the European region, but also in the neighbouring societies (Burke 2004). Airports have made transportation easier for the inhabitants of the European region within and outside the area. Easy access to air transport is a crucial pointer to high quality of life. Availability of airports has opened up and contributed to the development of rural areas in Europe. The second example of where airports play crucial role in Europe is economic development of the European region. European airports have ensured high accessibility in the region and opened up the region for international trade. By providing accessibility to global economies, airports have created an active business environment where European nations can do business smoothly with other nations outside the region without fear of transportation problems. In the absence of airports, many regions in Europe would never get the chance to participate in the world trade, which is crucial for economic development in the region. Consequently, the governments within European region have implemented Public Service Obligations in order to make sure that airports offer and maintain essential services (Burke 2004). The EU has also established emission standards to ensure that the quality of life is not overshadowed with excess emissions. Further, the European Union has established rules that promote fair play in the aviation industry, thus eliminating possible unhealthy competition that would threaten the survival of aviation companies. Conclusion Airports are major contributors of development and growth of national economies, especially in developing nations. The aviation industry drives global economic development by ensuring reliable connectivity between different points of the world. Airports contribute directly and indirectly to the welfare of contemporary societies. They provide direct employment opportunities and also stimulate economic performance of other industries. By stimulating economic activities in other sectors of the economy, airports ensure increased per-sector contribution towards the growth of national economies. As such, airports, through their spin-off or catalytic effects, facilitate growth and development of national economies. Being one of the main employers across the world, the aviation industry (airports) has resulted into increased standards of living in many societies across the world. Bibliography Air Transport Action Group 2012, “Economic Growth: An Economic Engine,” Viewed April 10, 2014 Ashford, NJ, Mumayiz, SA & Wright, PH 2011, “Airport engineering: design, planning, and development of 21st century airports,” Wiley, Hoboken, NJ. Bednarek, JRD & Bednarek, MH 2003, “Dreams of flight: general aviation in the United States,” College Station Texas University Press, Texas. Burke, J 2004, “The social and economic impact of airports in Europe.” Viewed April 12, 2014 https://www.ryanair.com/doc/news/2012/ACI-Report.pdf Conrady, R, Buck, M, Viehl, P & Tittel, K 2011, “Trends and issues in global tourism 2011,” Springer, New York. Dempsey, PS 2004, “European aviation law,” Kluwer Law Internat., The Hague. Gőssling, S & Peeters, P 2007, “It Does Not Harm the Environment!’ An Analysis of Industry Discourses on Tourism, Air Travel and the Environment,” JOURNAL OF SUSTAINABLE TOURISM, vol. 15 no. 4, pp.402-417. Great Britain Parliament, House of Commons & Transport Committee 2013, “Aviation strategy: first report of session 2013-14. Vol. 2, Oral and written evidence. Stationery Office,” London, Stationary Office. Hakizimana, A 2012, “Understanding Everyday Governments Ways of Job Creation: Ideas and Governments Sustainable Strategy to Facilitate Success in Job Creation,” iUniverse, Bloominghton, IN. Kinvig, N 2009, “Beyond the cabbage tree,” AuthorHouse, Newzeland. Martín-Consuegra, D, Molina, A & Esteban, Á 2006, “Customer Orientation in the Airline Industry: A Comparison between Travelers and Airlines,” e-Review of Tourism Research (eRTR), vol. 4, no. 5, pp.108-118. Ohaeri, R 2012, “Synergic Growth between Air Transport & Tourism in Africa: Learning Right.” Accessed April 10, 2014 Read More