**5.1. Economic footprint of air transport in Greece**

Greece attracts a high number of tourists because of the warm weather, the excellent climate, the 16,000 km of coast along the Mediterranean, the spatial allocation of Greek islands in Mediterranean (Aegean Sea) and the high number of archaeological and cultural places. Tourism in Greek economy production model has achieved a satisfactory performance, as according to Ref. [31], in 2012, Greece was in the 17th position as regards the number of international tourist arrivals and 23rd as regards international tourism receipts. Moreover, according to Ref. [9] in 2013, Greece was ranked in the 32nd position between 140 countries as the Travel and Tourism Competitiveness Index 2013 analysed, while Greece ranked in the 96th position in the Global Competitiveness Index 2013. This proves that tourism is one of the most competitive sectors of the Greek economy at a global scale. Since tourism destinations are a long distance from the tourist home residences (highest share in Germany, France, Holland, the UK), air transport becomes the most important transportation mode, and aviation industry fulfils the task for over 70% of the international tourist arrivals (ITA) in Greece [9].

In terms of air transport traffic, 38 million passengers arrived and departed from Greek airports in 2013 [32]. The five largest airports are Athens, Heraklion, Thessaloniki, Rhodes and Chania, which handle almost 28 million passengers in 2013. It is noteworthy that for Heraklion, Rhodes and Chania, almost 90% of the passengers are leisure travellers during the summer and almost 65% of the traffic in Athens and Thessaloniki accommodated during the summer season [32]. Applying the IO analysis framework, it appears that the total contribution of air transport sector to the national GDP amounted to 10.8% (**Figure 3**).

In conclusion, air transport sector in 2013 direct, indirect and induced contributed to 3.8% to the country's GDP, whereas its catalytic contribution was estimated at 7% confirming the large interaction between air transport and national economy [33].

#### **5.2. Economic footprint of a new tourist airport**

The decision-making process to invest in a new airport is complicated, mainly, due to the planning process restrictions, the amount of capital investment needs and the many stakeholders

**Figure 3.** Contribution of air transport to the national GDP (Greece, year 2013) (source: [33]).

some of the output of the sector *i* from elsewhere in the nation *N* as in Ref. [30] is analysed. Similarly, if SLQi is greater than 1, the region exports some of the output of its sector to the

The case studies provided in this section are referred to the economic impact footprint analysis of air transport sector in Greece, highlighting the overall economic impact in national economy, setting estimations for the development of a new airport and providing comparisons with other tourist regions in Mediterranean. The analysis framework is based on IO

Greece attracts a high number of tourists because of the warm weather, the excellent climate, the 16,000 km of coast along the Mediterranean, the spatial allocation of Greek islands in Mediterranean (Aegean Sea) and the high number of archaeological and cultural places. Tourism in Greek economy production model has achieved a satisfactory performance, as according to Ref. [31], in 2012, Greece was in the 17th position as regards the number of international tourist arrivals and 23rd as regards international tourism receipts. Moreover, according to Ref. [9] in 2013, Greece was ranked in the 32nd position between 140 countries as the Travel and Tourism Competitiveness Index 2013 analysed, while Greece ranked in the 96th position in the Global Competitiveness Index 2013. This proves that tourism is one of the most competitive sectors of the Greek economy at a global scale. Since tourism destinations are a long distance from the tourist home residences (highest share in Germany, France, Holland, the UK), air transport becomes the most important transportation mode, and aviation indus-

try fulfils the task for over 70% of the international tourist arrivals (ITA) in Greece [9].

tion of air transport sector to the national GDP amounted to 10.8% (**Figure 3**).

large interaction between air transport and national economy [33].

**5.2. Economic footprint of a new tourist airport**

In terms of air transport traffic, 38 million passengers arrived and departed from Greek airports in 2013 [32]. The five largest airports are Athens, Heraklion, Thessaloniki, Rhodes and Chania, which handle almost 28 million passengers in 2013. It is noteworthy that for Heraklion, Rhodes and Chania, almost 90% of the passengers are leisure travellers during the summer and almost 65% of the traffic in Athens and Thessaloniki accommodated during the summer season [32]. Applying the IO analysis framework, it appears that the total contribu-

In conclusion, air transport sector in 2013 direct, indirect and induced contributed to 3.8% to the country's GDP, whereas its catalytic contribution was estimated at 7% confirming the

The decision-making process to invest in a new airport is complicated, mainly, due to the planning process restrictions, the amount of capital investment needs and the many stakeholders

rest of the nation *N*.

modelling as given above.

**5. Numerical examples: case studies**

152 Mobilities, Tourism and Travel Behavior - Contexts and Boundaries

**5.1. Economic footprint of air transport in Greece**

involved in decision process. Especially in tourist seasonal airports, where the new airport development is strongly related to the regional competitiveness and medium-long-time sustainable development, the decision may take very long time.

This case study focuses on the establishment of a new regional airport with high seasonal traffic nature, like airports located in tourist destinations. The new airport is based on the island of Crete (approx. 30 kms for the centre of Heraklion city at Kasteli valley), which is one of the most attractive tourist destinations in south-east Mediterranean.

The construction cost of the new airport is estimated at € 800 million comprised mainly of the construction of runways, terminal, roads, parking lots and control tower. The construction period is 5 years. The project financing and management scheme will follow the public-private partnerships (PPP). The new airport will be developed on a design-build-finance-operateand-transfer (DBFOT) basis for a period of 35 years.

Applying the IO modelling is estimated that approximately the 4% of GDP in the island of Crete is generated directly due to the existing Heraklion airport. The circulation of direct and indirect impacts through the regional economy contributes additionally 7% to the GDP [25]. Finally, it is estimated that 11% of the regional GDP is created due to catalytic impact (**Figure 4**).

The construction of the new airport will create an additional 10% contribution to the regional GDP during the construction period through the direct employees, the indirect referring to the suppliers of the construction works and the induced employees, thus recycling to the regional economy due to direct and indirect impact. Furthermore, the operation of the new airport will create an additional 8% contribution to the regional GDP during the first 5 years of operation period through the catalytic impact.

**Figure 4.** Contribution of existing and new airport to regional GDP (2010 prices) (source: [21]).

The results provide the evidence that the development of a new airport will spur economic growth by generating additional income through the construction period and through the operation through increased tourism demand.

#### **5.3. Economic footprint in Mediterranean tourist destinations**

The Mediterranean region is one of the most attractive tourism destinations in the world, accounting for approximately one third of the world ITA (423.7 million ITA in 2013) according to Ref. [31]. For decades, the Mediterranean destinations have provided, along with other

**Figure 5.** % Contribution of airports in North Mediterranean countries to GDP (2013) (source: [34]).

attractions, the traditional sun, sand and sea product, essentially for the North European markets. Spain, Portugal, Greece, Cyprus, Malta and Italy are the leaders in attracting tourists in the region of North Mediterranean. Tourism in these countries is one of the major sources of national income [31].

According to Ref. [34], for 2013, the contribution of the airports for six main Mediterranean countries to the national GDP ranges from 3.5% of to 11% (**Figure 5**).

Especially for destinations with high percentage of air transport ITAs like the islands of Cyprus and Malta, the contribution of air transport to national GDP extends to 11 and 9.2%, respectively. It is also highlighted that Greece due to the dispersion of tourist destinations, the intense seasonality and a large number of airports, has the highest share of airport contribution to the national GDP (7.6%) in comparison with other Mediterranean countries [34].
