Araxos National Airport and its contribution to the economic and tourist development of the Western Greece Region

Abstract

The study of international travel and tourism literature highlights the dominant role of air transport in
passenger mobility worldwide, significantly affecting the economic development of many regions,
especially those that are geographically and touristically isolated. Changes in the air transport sector can
also impact regional development. While increased traffic can create congestion at major airports, remote
areas may suffer from limited service on thin routes. Regional airports can be valuable assets in tourism
development, particularly when linked to nearby industrial or tourism businesses, but they often do not
operate at full capacity due to low investment interest. During the COVID-19 pandemic, understanding the
relationship between air transport and regional development became essential for supporting economic
competitiveness and social well-being.
The aim of this study is to investigate the contribution of Araxos State Airport to tourism development in
Western Greece. The methodology involves a longitudinal analysis of passenger traffic from 1994 to 2023,
integrating tourism indicators, economic performance metrics, and external shocks such as the economic
crisis and the COVID-19 pandemic. The main findings reveal a general upward trend in passenger traffic,
resilience of tourism flows during the economic crisis, and a sharp decline during the COVID-19 pandemic,
highlighting the vulnerability of regional tourism to global shocks. The study is motivated by the lack of
long-term empirical evidence on smaller regional airports in Greece, and its contribution is to provide
insights into airport-led regional development, inform policymakers, and offer recommendations for
tourism and transport planning.
JEL Classifications: L93, Z32, R58, O18
Keywords: air transportation, airports, tourism regional development