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An analysis of the positive and negative economic impacts of Heathrow Airport - Essay Example

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An analysis of the positive and negative economic impacts of Heathrow Airport

This paper is a report that mainly sought to identify the economic impact of the London Heathrow Airport, which was classified in this study as a tourism venue/ organization
Airport is considered as a location where aircrafts of varying sizes and types take off and land thereby acting as a stage for alighting and boarding aircrafts for passengers as well as the aircraft crew. Airport is a tourism venue/organization because it is the first and/ or last place that visitors pass through at a foreign destination.
The London Heathrow Airport is touted as the busiest airport in Europe with a very big passenger capacity. This fact has positioned London as an international financial center with an economy that runs on a 24 hours basis and businesses are supported by demand from the many passengers who are departing or entering the region via the Airport. However, the increase in demand arising from passengers has led to the creation of an artificial inflation within London
The main direct economic impact of the airport is that it acts as a major source of tax revenue to London local authorities and overall UK budget. The indirect positive impact of the airport is that it provides a ready market for other businesses enterprises that are located within the airport or in adjacent areas.
The direct negative positive impact of the airport is that it facilitates that development of artificial inflation while the indirect negative impact is that it reduces the suitability of London as international center for doing business.
Table of Contents 1.0 Introduction 3 2.0 The positive economic impacts of the London Heathrow Airport 4 2.1 Direct positive economic impacts 4 2.2 Indirect positive economic impacts 6 3.0 The negative economic impacts of the London Heathrow Airport 7 3.1 Direct negative economic impacts 8 3.2 Indirect negative economic impacts 9 4.0 Conclusions 10 References 11 Inkson, C. and Minnaert, L. 2012. Tourism Management: An Introduction. London, UK: Sage Publications 12 1.0 Introduction This present paper is a report that is entirely focused on analyzing a hospitality venue or organization and the economic impact of the venue/ organization. For this particular, report, the London’s Heathrow Airport was selected as the case study and therefore, this report seeks to provide an in-depth analysis of the economic impact of the airport, both the positive and the negative. It is important to note that the discussion of the economic impact would not be limited to the tourism perspective but rather the discussion will cover the general economy of the United Kingdom as well as the local economy of the City of London. Therefore, the report will have two major sections of which the first will detail on the positive economic impact of the London Heathrow Airport while the Second part will cover the negative impacts. However, briefly before the start, the report will provide brief background information of the chosen tourism venue/ organization. To begin with, Graham (2008) in his studies described an airport as a location where aircrafts of varying sizes and types take off and land thereby acting as a stage for alighting and boarding aircrafts for passengers as well as the aircraft crew. Tribe (2012) wrote that an airport is considered as a tourism venue/ organization because it is the first and/ or last place that visitors pass through at a foreign destination. The London Heathrow Airport is located in the London Borough of Hillingdon, which is in the western side of London. Inkson and Minnaert (2012) in their writings referred to the London Heathrow Airport as the busiest airport in the United Kingdom as well as the entire Europe and the third busiest in the world in terms of the passenger traffic in the airport. Hoare (1971) added that the airport is owned and managed by the Heathrow Airport Holdings that also owns three other airports in the United Kingdom. The airport acts as the primary hub for British Airways and the primary operating location for the Virgin Atlantic. In order to handle all the passenger traffics and the movements, the Airport has 5 terminals each serving aircrafts bound to or arriving from different routes. Among the top busiest international routes to and from the airport is led by New York, followed by Dubai, Dublin, Frankfurt, and Amsterdam. The busiest domestic routes include the ...Show more

Summary

This paper seeks to provide an in-depth analysis of the full gamut of the economic impact of the London Heathrow Airport, in the capacity of hospitality organization. This analysis is not limited to the tourism perspective but it rather evaluates impact on the UK economy and London, in particular. …
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