Air transport and tourism

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The different modes of transport are significant to the growth of international tourism. The cost of transport often determines the total cost of tourism products and directly influences the choice of tourism destination. Air transport has contributed to the creation of new tourism markets far from tourist-generating countries which are not accessible either by road or by sea. The air transport industry occupies an important part of the tourism industry and the world economy. In recent years, air transport contributed $700 billion to the world economy and the industry employed 21 mln. people worldwide. Despite a very rapid growth rate, higher than the world's GNP growth rate, international air transport is a different industry to manage, and both business and leisure traffic are susceptible to economic crises. Three conditions characterised air transport in the 1990s: an exceptional growth, increasingly competitive market and extreme vulnerability to international economic and political crises.

The growth of the air transport sector has been more than 6 per cent annually since the 1970s. However, this growth has been geographically concentrated in the industrialised regions and in the nearly industrialised countries. Third World countries, particularly the least advanced ones, are not included in the main international air transport routes.

The intense competition in the air transport industry causes difficulties in the management of active companies, even during periods of high demand. The worldwide policy of deregulation, following the experience of the USA, has transformed the market by creating competition between the carriers. This development has proved beneficial to the consumer and has resulted in a restricting of airlines.

Vulnerability to economic and international political shifts is the third feature of the air transport industry. The Gulf crisis and the economic recession at the beginning of the 1990s resulted in a decline in air traffic.

In fact, according to statistics compiled by the ICAO (International Civil Aviation Organisation), world airline traffic fell by 3.5 percent. The industry was particularly unstable throughout the 1980s; consequently, several major airline companies have disappeared, including the American companies Pan Am and Eastern.

The demand for air transport increased considerably with the introduction of the first jet aircraft. Since 1950, passenger receipts from commercial aviation have multiplied 60 times, a much greater growth rate than that of other modes of transport. This also implies a change in the travel pattern of tourists.

The economic analysis of passenger traffic and freight traffic reveals that their exceptional growth can be attributed to the elasticity of demand with respect to price. The fare structures adopted by airline companies prove that there is a strong price elasticity for leisure travel demand and weak price elasticity for business, and, to a lesser extent, personal travel demand.