Airports, Expansion and Retail - Who's Jetting Off With the Consumer?

Over the last couple of months I have been following the Heathrow airport discussion with interest.  Contention over Heathrow's extra runway and the fact that by the turn of the decade Heathrow will lose its competitive position as the top global airport.  COMAC, China's biggest aerospace company is choosing to base its European headquarters in Paris rather than London because of the French capital's better air links.  Tourists are choosing other destinations to holiday as Heathrow is proving challenging to access.  London has a lot to think about.

A few weeks ago I was reading in the Evening Standard about Richard Solomons, Chief Exec of Intercontinental Hotels, who was quoted as saying that the Germans and French are "running off with customers".  Germany has nine times the number of Chinese visitors compared to the UK.  France has six times.  So what is the problem?  According to Solomons it is not just an accessibility issue at the point of entry into a country, but a visa and security issue which the UK has fortunately / unfortunately got plenty of (depending on where you sit on this matter).

With the Olympics just around the corner, it will be interesting to see how things pan out.  One suddenly shivers at the thought of our guests arriving at Heathrow and being stuck in customs for hours - and that's before they even tackle the London tube system.  The press, I suspect, will have some fun with this!

On a positive, Birmingham International Airport is on the other hand extending its runway.  And in supporting the impetus, recently the Chinese firm NVC Lighting Limited, a subsidiary of China's largest lighting manufacturer, is expanding its UK base near Birmingham.  Accessibility has a lot to do with it according to the firm.

A Tale of Two Cities on the issue of airports.  One city is losing its competitive advantage; the other benefitting and bringing new business to town.  Whether accessibility is a point for businesses or tourists, both are customers of the UK economy and consequently our retail sector.  The concern is that we could / are driving business away unless this point is dealt with, particularly for London.  

I wonder if Heathrow will do an exit survey in acquiring customer feedback as they leave the Olympics and how the debate will take shape thereafter. There is not an easy win on this, depending what side of the fence you stand on.  But the equation is simple:

Tourism / International Business = Retail = Jobs!