By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Government was warned almost three years ago that most Family Island airports could not continue operating as they were, and that “significant attention” was needed to address multiple deficiencies.
A report by the consultancy group, Stantec, says it delivered “a strong message” to the Government and key aviation industry stakeholders on April 30, 2014, when it presented its initial technical assessments on some of the 28 airport facilities.
“The preliminary aerodrome technical assessments were presented to the Government’s aviation officials and key stakeholders on April 30, 2014, with the following strong message,” Stantec wrote in its report.
“The existing operating environment cannot continue in its present state. The airports require significant attention and resources (human and capital) to close the gap to an acceptable operating state.”
Stantec’s blunt warning, and report, were among a batch of documents released by the Inter-American Development Bank (IDB) to accompany its planned $53.8 million joint venture with the Government to upgrade the four main Family Island airports.
The facilities at Marsh Harbour/Treasure Cay in Abaco, Exuma and North Eleuthera will be upgraded to both bring them into line with global safety and regulatory standards, and ensure they can meet forecast increases in passenger volumes, in a project where the Government will contribute $18.8 million in financing.
Explaining why the project was focusing on these airports, an IDB report obtained by Tribune Business said: “These airports represent a significant port of entry for the Family Islands with economic opportunity to be operationally sustainable.
“The airports have both international and national destinations, summing in 2015 up to 187,100 passengers in Exuma; 120,000 passengers in North Eleuthera; and 328,400 passengers in Marsh Harbour/Treasure Cay, accounting for 57 per cent of the Family Islands traffic.
“The total traffic for the four analysed airports is expected to grow at an annual ratio of 2.9 per cent, reaching 1.45 million passengers by 2042. North Eleuthera and Exuma Airports are currently at capacity, while Marsh Harbour Airport joint with Treasure Cay is expected to reach saturation level in the mid-term (2020-2030).”
The IDB report said airlift was restricted by runway size at these airports, forcing carriers to rely heavily on aircraft with capacity “inferior” to 35 seats, thereby impeding tourist access and passengers volumes.
“Marsh Harbour airport, the highest traffic level in the Family Islands, has seven international regular destinations, all of them in North America,” the IDB said.
“Almost 50 per cent of the scheduled commercial flights are operated by aircrafts with less than 35 seats, and only 20 per cent of the flights are operated with medium-large aircraft.”
It added: “Exuma and North Eleuthera airports, the second and third respectively highest traffic level in the Family Islands, have four international regular destinations and two domestic connections.
‘Sixty per cent of commercial flights are also used by aircrafts with a capacity inferior to 35 seats, and only 4 per cent with medium-large aircraft.”
The Christie administration has been aware of the need to enhance the Family Island airports for some time, with Glenys Hanna Martin, minister of transport and aviation, previously referencing Stantec’s $160 million investment estimate for upgrading all 28 facilities.
It has already moved to enhance the airports at San Salvador and Bimini to accommodate multi-million dollar foreign investment projects such as Club Med and Resorts World.
However, progress on other facilities to-date has been slower, largely due to the fiscal and Budgetary constraints the Government is labouring under, which have forced it to explore how it can attract private capital and management expertise to share the burden.
Stantec’s report said: “The 28 Family Islands airports have been lacking in investment and operational attention recently, and it is an opportunity to provide an improved aviation environment for the Bahamas and its Family Islands.
“This will also create a new tourism partner and ‘front door’ for the islands and each region’s unique blend of tropical paradise, away from the large resort style packages.
“The airports require a substantial level of effort in maintenance and improvements in operating conditions, but also require more attention to the protection of the airside and its operating protection zones.”
Family Island airports are vital to unlocking the Bahamas’ full tourism potential, especially given market trends where tourists are seeking the experiences offered by niche, boutique resorts that are closer to local communities and culture.
“The overall investment in the Family Islands airports is a very positive one for the Government,” Stantec concluded.
“Studies of tourism economic impacts in the Bahamas have yielded GDP multipliers ranging from 0.87 to 1.25. Applying these multipliers to the direct tourist expenditures figure ($339.366 million for 2011) yields total economic impacts (direct, indirect and induced) accounted for by the Family Islands airports ranging from $634.615 million to $763.574 million. This translates to average per tourist economic impacts ranging from $3,272 to $3,937.”
The consulting firm warned, though, that the Family Island airports would require an annual $4.6 million maintenance spend to keep them in top condition.
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