1. Low cost air travel and regional co-operation

2. 3 rd AER Seminar on Sustainable Quality Tourism Low cost air travel – Market growth Share of European air travel market (est.) 38 % of the inter-European/British market 500 destinations in Europe (+ 300% 2002-2004) 100% increase in Sweden 2002- 2003

3. 3 rd AER Seminar on Sustainable Quality Tourism Low cost air travel – Profitability RyanaireasyJet

4. 3 rd AER Seminar on Sustainable Quality Tourism Business concept – LCC demands Low charges level at airports Simple charge structure Establishment grant of some sort Background - motives 10-25% expenditure Risk with new establishments. Who takes those risks? Opportunities for both parties. Establishment grant - shared responsibility Demands vary between companies

5. 3 rd AER Seminar on Sustainable Quality Tourism Catchment area Assessed passenger numbers Proximity to large city Leads to high cabin factor Airport role in the region Passenger accessibility

6. 3 rd AER Seminar on Sustainable Quality Tourism Passenger volumes LCC account for 15% of passenger volumes at Malmö-Sturup Aiport Attractive to Danish travellers/expanding airport catchment area Increase in commercial airport revenues

7. 3 rd AER Seminar on Sustainable Quality Tourism Socio economic analyses ACI Europe – Economic Impact Study Kit Direct effects Indirect effects Cause effects Dynamic effects Effects on employment and tax revenues Källa: ACI Europe/York Consulting (2000). Creating employment and prosperity in Europe: An economic impact study kit. www.aci-europe.org

8. 3 rd AER Seminar on Sustainable Quality Tourism Direct effects Generated by the operations at the airport Rule of thumb: 1,000 employees per million PAX MMX 2003: 1.75 million PAX, 1,400 employees  Ratio: 0.8 employees per 1,000 PAX

9. 3 rd AER Seminar on Sustainable Quality Tourism Indirect/cause effects Generated by the operations who ”serve” the airport Generated by those directly or indirectly employed Multiplication effect – varies between 1.3 and 4.0 uncalibrated average 2.1 MMX: multiplication effect between 1.3 and 2.1 Indirect and cause effects: 400 – 1,500 employed

10. 3 rd AER Seminar on Sustainable Quality Tourism Dynamic effects Generated by attractive, retaining and expansivie operations MMX Proximity to Kastrup reduces effect Inregias assessment from August 2004 20 % of the direct/indirect employment Dynamic effects: 400 – 600 employed

11. 3 rd AER Seminar on Sustainable Quality Tourism Total effect Result of direct, indirect, cause and dynamic effects 2,200 – 3,500 employed 0.8 % - 1.3 % of those employed in the region Tax revenues between 175 and 280 M SEK

12. 3 rd AER Seminar on Sustainable Quality Tourism Importance of international tourism Economic effect of tourists flying to MMX Calculations based on information from: Ryanair, London-Stansted to MMX British overnight accommodation in Malmö and Skåne SCB’s consumer survey 2001-2003 SCB’s salary statistics Own calculations

13. 3 rd AER Seminar on Sustainable Quality Tourism British overnight accommodation Overnight hotel accommodation in Malmö (1000’s) 8,6 10,9 12,4 18,4 13,2 24,4 23,6 30,330,4 30,5 0 5 10 15 20 25 30 35 19931994199519961997199819992000200120022003 From GB

14. 3 rd AER Seminar on Sustainable Quality Tourism Tourism – Economic effects Spend between 1,000 and 1,500 SEK per person and day Average length of stay 4 days Regional total turnover 48 to 72 M SEK 45 to 70 job vacancies

15. 3 rd AER Seminar on Sustainable Quality Tourism Economic effect of new airline routes 1 Ryanair route 5 Ryanair routes 10 Ryanair routes Capacity/year200 0001 000 0002 000 000 Cabin factor0,85 Increased number of passengers 170 000850 0001 700 000 Total number of job vacancies 21210612122 Increased tourist turnover 48 000 000 SEK 24 000 000 SEK 480 000 SEK Tourism employment45227454 Tax revenue16 930 000 SEK 84 651 000 SEK 169 303 000 SEK

16. 3 rd AER Seminar on Sustainable Quality Tourism Cause - Effect - Co-operation Visibility AccessibilityDesirability Visibility: potential visitors are familiar with the region Desirability: wide regional choice Accessibility: simple and easy travelling within the region

17. 3 rd AER Seminar on Sustainable Quality Tourism Potential forms of co-operation 1.Regional financing or subsidies Nyköpings Municipality Girona/Catalunya 2.Co-operation and joint projects Strengthen existing co- operation Suggested co-operation and projects

18. 3 rd AER Seminar on Sustainable Quality Tourism Regional financing Neither interest nor understanding from interested parties Lack of knowledge Political and legal restrictions Limited economic resources Increase knowledge through communication and co- operation. Use direct information such as employment estimates!