AVIATION AND TOURISM This page intentionally left blank Aviation and Tourism Implications for Leisure Travel ANNE GRAHAM University of Westminster, United Kingdom ANDREAS PAPATHEODOROU University of the Aegean, Greece PETER FORSYTH Monash University, Australia © Anne Graham, Andreas Papatheodorou and Peter Forsyth 2008 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmied in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher. Anne Graham, Andreas Papatheodorou and Peter Forsyth have asserted their moral rights under the Copyright, Designs and Patents Act, 1988, to be identified as the editors of this work. Published by Ashgate Publishing Limited Ashgate Publishing Company Gower House Suite 420 Cro Road 101 Cherry Street Aldershot Burlington, VT 05401-4405 Hampshire GU11 3HR USA England www.ashgate.com British Library Cataloguing in Publication Data Aviation and tourism : implications for leisure travel 1. Tourism 2. Tourism - Government policy 3. Aeronautics and state 4. Aeronautics, Commercial - Passenger traffic I. Graham, Anne II. Papatheodorou, Andreas, 1974- III. Forsyth, P. (Peter) 338.4’791 ISBN-13: 978-0-7546-7187-9 Library of Congress Cataloging-in-Publication Data Aviation and tourism : implications for leisure travel / edited by Anne Graham, Andreas Papatheodorou, and Peter Forsyth. p. cm. Includes bibliographical references and index. ISBN 978-0-7546-7187-9 1. Tourism. 2. Tourism--Government policy. 3. Aeronautics and state. I. Graham, Anne. II. Papatheodorou, Andreas, 1974- III. Forsyth, P. (Peter) G155.A1A84 2008 338.4’791--dc22 2008007605 Contents List of Acronyms ix List of Figures xiii List of Maps xv List of Tables xvii List of Editors xix List of Contributors xxi Preface xxvii Acknowledgements xxix 1 Introduction 1 Anne Graham, Andreas Papatheodorou and Peter Forsyth PART I LEISURE TRAVEL DEMAND 2 The Nature of Leisure Travel Demand 7 Gang Li 3 Trends and Characteristics of Leisure Travel Demand 21 Anne Graham 4 Aviation Marketing and the Leisure Market 35 Stephen Shaw PART II REGULATION AND GOVERNMENT POLICY 5 The Impact of Civil Aviation Regimes on Leisure Travel 49 Andreas Papatheodorou 6 Leisure Travel and Legal Issues in Aviation 59 Anastasia Vasiliadou 7 Tourism and Aviation Policy: Exploring the Links 73 Peter Forsyth v vi AVIATION AND TOURISM PART III AIRLINE ISSUES 8 The Future of Charter Operations 85 George Williams 9 The Emergence of the Low Cost Carrier Sector 103 Sean Barre 10 From a National Airline to an EU Leisure-based Carrier 119 John Zammit 11 Leisure Travel, Network Carriers and Alliances 137 Kostas Iatrou and Elena Tsitsiragou 12 Market Power and Vertical (Dis)integration? Airline Networks and Destination Development in the United States and Dubai 147 Keith G. Debbage and Khaula Alkaabi PART IV IMPLICATIONS FOR AIRPORTS 13 Airport Requirements for Leisure Travellers 167 Nuno Mocica Brilha 14 The Impact of Aracting Low Cost Carriers to Airports 177 Rafael Echevarne 15 Airport Marketing and Tourism in Remote Destinations: Exploiting the Potential in Europe’s Northern Periphery 193 Nigel Halpern and Jukka Niskala 16 Applications and Implications of Information and Communication Technology for Airports and Leisure Travellers 209 Marianna Sigala PART V ECONOMIC AND ENVIRONMENTAL IMPACTS 17 New Air Services: Tourism and Economic Development 227 Brian Graham 18 The Environmental Sustainability of Aviation and Tourism 239 Ben Daley, Dimitrios Dimitriou and Callum Thomas CONTENTS vii PART VI DESTINATION CASE STUDIES 19 Brazil 257 Respicio Espirito Santo Jr 20 India 267 John F. O’Connell 21 China 279 Zheng Lei 22 The Middle East 291 John F. O’Connell 23 Africa 303 Pavlos Arvanitis and Petros Zenelis 24 Mauritius 313 Neelu Seetaram 25 South Pacific 323 Semisi Taumoepeau PART VII CONCLUSIONS 26 Conclusions: Themes and Future Issues 335 Peter Forsyth, Andreas Papatheodorou and Anne Graham Bibliography 345 Glossary 369 Name Index 371 Subject Index 375 This page intentionally left blank List of Acronyms A Airbus AACO Arab Air Carriers Organization AAI Airport Authority of India ACARE Advisory Council for Aeronautics Research in Europe ACI Airports Council International ACSA Airports Company South Africa ADP Aéroports de Paris ADR Aeroporti di Roma AEA Association of European Airlines AFCAC African Civil Aviation Commission ANAC National Civil Aviation Agency (Brazil) APD Air Passenger Duty (UK) APU Auxiliary Power Units AQS Air Quality Standards ARIMA Autoregressive Integrated Moving Average ASK/M Available Seat Kilometres/Miles ASEAN Association of South East Asian Nations ASPA Association of South Pacific Airlines ATAG Air Transport Action Group ATC Air Traffic Control ATI Air Transport Intelligence ATOL Air Travel Organisers’ Licensing (UK) ATR Avions de Transport Régional B Boeing BA British Airways BAE BAE Systems plc (B)ASA/BATA (Bilateral) Air Services Agreements/Bilateral Air Transport Agreements BCBP Bar Coded Boarding Pass BSCA Brussels South Charleroi Airport CAA Civil Aviation Authority (UK) CAAC Civil Aviation Administration of China CAAS Civil Aviation Authority of Singapore CASK/M Operating Cost per Available Seat Kilometre/Mile CEO Chief Executive Officer CGE Computable General Equilibrium CNTA China National Tourism Administration ix x AVIATION AND TOURISM CPI Consumer Price Index CRJ Canadair Regional Jet (Bombardier) CRS Computer Reservation System CRT Centre for Regional and Tourism Research (Denmark) CUSS Common Use Self Service CWC Carriers Within Carriers DAC Department of Civil Aviation (Brazil) DfT Department for Transport (UK) DoT Department of Transport (USA) DRDNI Department for Regional Development Northern Ireland DVT Deep Vein Thrombosis EAS Essential Air Service EASA European Aviation Safety Agency EC European Commission ECA Economic Commission for Africa ECAA European Common Aviation Area ECAC European Civil Aviation Conference EEA European Economic Area EEC European Economic Community ELFAA European Low Fares Airlines Association ERJ Embraer Regional Jet ETS Emissions Trading Scheme EU European Union EUDGE European Union Directorate General for the Environment FAST Fully Automated Seamless Travel FFP Frequent Flyer Programme FSC Full Service Carrier GCC Gulf Cooperation Council GDP Gross Domestic Product GDS Global Distribution System GE General Electric GFF Global Futures and Foresight GNP Gross National Product GPS Global Positioning System GST General Sales Tax HIAL Highlands and Islands Airports Limited HSBC Hong Kong and Shanghai Banking Corporation IACA International Air Carrier Association IACS Immigration Automated Clearance System IATF International Airline Training Fund (IATA) IBM International Business Machines ICAO International Civil Aviation Organisation IMF International Monetary Fund IOSA IATA Operational Safety Audit IPCC Intergovernmental Panel on Climate Change IPS International Passenger Survey (UK) IT/ICT Information/Information and Communication Technologies KADCO Kilimanjaro Airport Development Company (Tanzania) LIST OF ACRONYMS xi KLM Koninklijke Luchtvaart Maatschappij (Royal Dutch Airlines) LCC Low Cost Carrier MIA Malta International Airport MIISPA Managed Integrated Independent South Pacific Airlines MMS Multimedia Message Service MTA Malta Tourism Authority NCAA Nigerian Civil Aviation Authority NIMBY Not-In-My-Back-Yard OAG Official Airline Guide OECD Organisation for Economic Co-operation and Development OEF Oxford Economic Forecasting OFT Office of Fair Trading (UK) ONDA Office National des Aéroports (Morocco) OPEC Organization of the Petroleum Exporting Countries PATA Pacific Asia Travel Association PM Particulate Maer PNR Passenger Name Records PPP Private – Public Partnership PSO Public Service Obligation RASK/M Passenger Revenue per Available Seat Kilometre/ Mile RFID Radio Frequency ID RJ Regional Jet (associated with BAE) RTIC Registered Traveller Inter-operability Consortium RPK/M Revenue Passenger-Kilometres/Miles RTP Registered Travellers Programmes RUCUR Relative Unit Cost – Unit Revenue SAA South African Airlines SARS Severe Acute Respiratory Syndrome SAS Scandinavian Airline Systems SDR Special Drawing Rights SE South-East SMS Short Message Service SP1 Standard Provision 1 SPTO South Pacific Tourism Organization SRA Strategic Research Agenda (European Union) ST-EP Sustainable Tourism - Eliminate Poverty (Africa) STSM Structural Time-Series Model TAAI Travel Agents Association of India TDP Tourism Development Plan (Mauritius) TINA The INtelligent Airport (Heathrow, UK) T&T Travel and Tourism TSA Transport Security Administration (USA) UAE United Arab Emirates UK United Kingdom UN United Nations UNESCO United Nations Educational, Scientific and Cultural Organization UNWTO United Nations World Tourism Organization USA (or US) Unites States of America xii AVIATION AND TOURISM VARIG Viação Aérea RIo Grandense (Brazil) VASP Viação Aérea São Paulo (Brazil) VAT Value Added Tax VFR Visiting Friends and Relatives VOC Volatile Organic Compounds VWP Visa Waiver Program (USA) WCED World Commission on Environment and Development WTO World Tourism Organization (former name of UNWTO) WTTC World Travel and Tourism Council List of Figures Figure 2.1 Indices of leisure visits abroad by UK residents and household disposable income (1985=100) 9 Figure 2.2 Growth rates of UK and US CPIs, exchange rates between Sterling and Dollar, and effective price of tourism 11 Figure 2.3 British residents' international leisure travel