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Analysis of Regional Context for the Keflavík Airport Development Area

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Analysis of Regional Context for the Keflavík Airport Development Area Analysis of regional context For the Keflavík Airport Development Area January 2021 Authors: Alta Consulting. Photos and maps: Alta Consulting Layout and design: Alta Consulting A1469-006-U01 2 Development Context for the Keflavík Airport Development Area Contents 1 Iceland and the development area 7 5 The Economy 65 1.1 The development area 8 5.1 The Economic system 66 2 Resources 11 5.2 Industries 70 2.1 Distinct landscape 12 5.3 Aviation-related operations 72 2.2 Renewable energy 15 5.4 Tourism 76 2.3 Pure drinking water 18 5.5 Energy-intensive industry 80 2.4 Unique flora and fauna 20 5.6 Fisheries and agriculture 81 2.5 Weather and climate 22 5.7 High-tech and innovation 82 3 Infrastructure and connections 25 6 Policy and planning 85 3.1 Road transport 26 6.1 National legislations and policies 86 3.2 Eco-friendly modes of transport 30 6.2 Regional planning in the Suðurnes region 88 3.3 Air transport 34 6.3 General land use plans 90 3.4 Ports and sailing 38 6.4 Planning within the airport 94 3.5 Energy transmission system and energy security 40 6.5 Limitation of land use 96 3.6 Telecommunication 42 4 Society 45 4.1 Administration 46 4.2 Population centres 47 4.3 Inhabitants 52 4.4 Real estate market 53 4.5 Services 54 4.6 Education and research 57 4.7 Culture, sports and recreation 60 3 Sustainability and resilience In this report, sustainability and resilience are defined by three main The project’s goal is to create frames of reference: Environmental sustainability an airport area which is Successful airport areas consider adjustment to climate change as a necessary step towards securing the wellbeing of future generations. environmentally, socially and At the same time, they use the reduction of CO2 emissions as an encouragement for technological and economical innovation, and sustainable urban planning as an opportunity to save money in the long economically sustainable, as term. Finally, well-designed airport areas consider a commitment on the reduced emissions of greenhouse gases to be a powerful tool for gaining well as resilient. support from society, improving communication with the authorities and attracting investors from the private sector. 4 Development Context for the Keflavík Airport Development Area Social sustainability Economic sustainability Aviation is generally acknowledged as a driving force of economic growth, Successful airport areas acknowledge that the development of a diverse both regionally and nationally. It is also a powerful tool for creating group of customers, operations and land use are necessary for securing employment. International airport hubs like Keflavík Airport are usually a long-term economic resilience for both the airport and the surrounding one of the largest employers of the surrounding communities and even communities. From the airport’s point of view it is possible to lessen of the entire country. According to the references of Airports Council the impact of unexpected economic shocks which suddenly reduce the International Europe, it can be expected that with every 1,000 passengers number of passengers, for example due to a volcanic eruption, bankruptcy 0.8 jobs are created in aviation and related services. That means 6,000 of an airline or a global pandemic, by developing additional sources of jobs based on the number of passengers in 2019. The world’s employment income outside the airport area. From the surrounding communities’ market is rapidly changing and in the coming years we will attempt to point of view, the development of the airport area is a powerful tool build on Keflavík Airport’s position as a force for creating employment, to for increasing their tax base and—as mentioned earlier—creating local strengthen the current industries in the airport area and to create new employment opportunities. Together, the airport and surrounding opportunities for inhabitants in the municipalities around the airport. That communities can seek tenants and investments from the public and is how the Icelandic labor force can be prepared for upcoming changes in private sectors to increase their resilience both during times of rapid the employment market. growth and recession. This both reinforces already existing industries so that they can thrive and attracts other industries to the airport area. 5 6 Development Context for the Keflavík Airport Development Area Introduction The plan is intended to support employment in the region. Abundant opportunities can be found in the region and therefore it is paramount that the plan proves successful. Kadeco, a company owned by the Keflavík Airport is equally important for the entire country as it is Iceland’s point of connection with the outside world. Icelandic state, has been tasked with Kadeco’s task is to create a powerful development plan making a strategic development plan for and a strategic land use plan based on a vision for the area, market analysis and international competitions for ideas and the area surrounding Keflavík Airport in planning. cooperation with Isavia, Reykjanesbær This document is intended to form the basis for the development of a future vision for the Keflavík Airport area and Suðurnesjabær municipalities. and a regional brand. The context analysis provides an image of the area’s uniqueness, possible opportunities and challenges involved. In addition to the context analysis, various information about the project can be found on a special project website: www.kadeco.is 7 Development Context for the Keflavík Airport Development Area 1 Iceland and the Various facts about Iceland: • Iceland measures 103,000 km2 and is Europe’s second largest island. development area • Inhabitants numbered 366,000 in 2020. • Icelandic is the national language, but most people have Iceland is an island in the middle of the conversational skills in English. North Atlantic on the plate boundaries • Iceland has one of the world’s oldest operating parliaments. • The world’s first democratically elected female head of between Europe and North America. It takes state became the President of Iceland in 1980. approximately three hours to fly from Iceland • Iceland is part of the EEA and NATO but not of the EU and to Central Europe and five hours to cities on has no military of its own. • Quality of life in Iceland ranks the sixth best in the world, the East Coast of North America. according to the UN’ Human Development Index (HDI). • Iceland ranks ninth in gender equality, according to the UN’s Gender Inequality Index (GII)1 • Life expectancy is among the highest in Europe, at 81 years 2 for men and 84.1 for women 1 HDI 2 Hagstofan 9 1.1 The development area Strong connection between society and Reykjanes was named one of the 100 most airport operations sustainable destinations in the world by the The development area around Keflavík Airport is The airport area itself is located on the boundaries non-profit foundation Green Destinations. Within in the west of Reykjanes peninsula in Southwest of two municipalities: Suðurnesjabær and minutes after landing at Keflavík Airport one can Iceland, in about a 30–minute driving distance Reykjanesbær. Through time, the communities escape from international turmoil into a different from the capital region. The communities on the around the airport area have had strong economic world of magnificent earth formations, eco- peninsula, south of Hafnarfjörður, are collectively and social connection with business operations friendly energy and the ocean’s bounty. Great called Suðurnes. The airport was constructed in the area. The airport’s activities have increased opportunities lie in the region, both as a place for during World War II when the British and later considerably in the last few years due to the innovation and as a remote destination en route the Americans occupied Iceland. After the war, increased number of tourists. This comes with of international air traffic. the US military operated a base (Naval Air Station opportunities, as well as challenges. So far, the Keflavík) in the airport area until 2006. communities closest to the airport have proven Centre of aviation in the North Atlantic important service providers for the airport, which has created a multitude of jobs for inhabitants Keflavík Airport is by far the largest airport in in the region. However, this dependency makes Iceland and serves a key role in connecting the the region very sensitive to economic swings country with the outside world. Since Iceland is related to the airport’s operations, as the recent an island the airport also serves as a transport global pandemic has demonstrated, as well as the centre for the entire country and the vast majority departure of the US military in 2006. of passengers who travel to or from Iceland pass through it. The airport has undergone rapid Hidden gem in the vicinity of an airport growth in the past years in keeping with Iceland’s There are also various unused opportunities in increased popularity as a tourist destination. relation to strengthening the image of Reykjanes The airport connects two continents — North peninsula as a destination where tourists America and Europe. It is also well-positioned for spend more time. The proximity to the capital connections to Asia and various opportunities lie region leads to many tourists choosing to book in increased flights across the North Pole. accommodation there rather than in the Suðurnes region1. The environment around Keflavík Airport and Reykjanes peninsula are characterised by tranquility and unique nature, framed by wide expanses and the ocean in a spectacular fashion. In 2017, 1 Reykjanes destination plan 2018-2021. 10 Development Context for the Keflavík Airport Development Area Urban areas close to the airport area and main transport links.
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