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Victoria airport’s impact valued at $880 million

Victoria International Airport is swinging well above its weight class, according to a new economic impact study released Wednesday by the Victoria Airport Authority.
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A WestJet flight lands at Victoria International airport. YYJ processed more than two million passengers last year.

Victoria International Airport is swinging well above its weight class, according to a new economic impact study released Wednesday by the Victoria Airport Authority.

The airport, which will see two million passengers through its gates this year, has not only doubled its passenger capacity, but nearly doubled its economic impact over the past 12 years.

“We had the intuition that the numbers were much bigger, but we really wanted to quantify it and I think it’s important for people to understand that, too,” said authority chief executive Geoff Dickson. “I think it’s important to demonstrate the overall impact.

“People intuitively understand that connectivity is important, and in the 21st century, airports are pretty vital.”

The study showed operations at the airport in 2017 generated $270 million in wages, employed 4,200 full-time equivalents directly and indirectly, created $420 million in gross domestic product and had a total direct and indirect economic impact of more than $880 million.

A 2005 study suggested the airport had a total economic impact of $441 million and employed 2,920 full-time equivalent jobs.

Dickson said the reason for the study was to understand the airport’s economic contribution to the region.

“When you look back over a decade and see traffic has doubled since then, the question becomes what will it look like in another 10 years,” he said.

Paul Nursey, chief executive at Tourism Victoria, was not surprised at the impact, but did point out the airport does a lot of things to distinguish itself on the world stage, which might have contributed to its growth.

“Victoria International Airport offers a very high level of service. From bottle refill stations for folks who had to replenish water after dumping out their water going through security to having local outlets such as Spinnakers instead of global chains, it is a very high-quality airport,” he said. “Airlines, meeting planners and leisure tour operators notice the difference.

“This makes a difference to customers, which in turn builds customer loyalty. Customer loyalty along with strong macro fundamentals, such as tourism growth, both contribute to growth.”

Dickson said the study will help the authority with future plans. “I think it helps validate what we’re doing and reminds us of the importance of what we are doing in terms of the investment in the airport to enable to meet today’s demand and future growth five, 10 and 15 years down the road,” he said. “This reinforces the commitment to making the right investment and making investments so we are not too far ahead of the demand curve.”

The airport recorded 1.77 million visitors through its gates up to the end of November of 2017, with the expectation that number will be close to two million when the final tally is made for the year.

That growth puts the airport about three years ahead of its demand forecasts, according to Dickson. “It’s a nice problem to have,” he said.

While it’s not likely to mean the airport will speed up some of its expansion plans in the short-term, Dickson expects some of their longer range plans such as expansion of the terminal both to the west and east and increasing apron capacity could start within the next five years.