Measuring the economic impact of liberalization of international aviation on Hamburg airport

The paper describes a four-step modeling approach to estimating the impact of changes to the international aviation bilaterals on airport revenues and the income, employment and tourism effects for the local economy. The mode l is estimated on and applied to Hamburg airport and the State of Hamburg u sing a set of 10 representative markets that would have access to the Germa n market. We find that Hamburg airport Would gain 149,000 new passengers of which 17,000 would be hubbing through the airport to other international d estinations. The change in passenger and operations leads to a 6 percent in crease in overall airport revenues, as well as increases in local output, i nvestment and employment. Tourism impacts were estimated separately with 11 ,000 new tourists and 22 new jobs in the tourism industry. (C) 2001 Elsevie r Science Ltd. All rights reserved.