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The economic impact of the inoperability of the airport at a small-island tourism destination: The case of Madeira

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  • Almeida, António
  • Machado, Luiz Pinto
  • Garrod, Brian

Abstract

Climate change means that tourism on small islands is increasingly vulnerable to the disruptive effects of adverse weather conditions. Many small islands rely upon a single airport, so when weather conditions cause inbound flights to be delayed, diverted, or even cancelled, this will tend to reduce tourists' length of stay. There may also be longer-term damage to the destination's image in terms of transport reliability. This paper sets out to estimate the economic impact of weather-related flight delays and cancellations at a small-island tourism destination. Using Madeira as an example, a two-stage estimation approach was developed using both primary and secondary data. Based on the premise that around 1% of tourists are affected by delays that result in shorter stays, several scenarios were developed and estimates of their economic impacts computed. The results suggest that while the short-term economic impact may be relatively small, the longer-term effects may be more substantial.

Suggested Citation

  • Almeida, António & Machado, Luiz Pinto & Garrod, Brian, 2025. "The economic impact of the inoperability of the airport at a small-island tourism destination: The case of Madeira," Journal of Air Transport Management, Elsevier, vol. 128(C).
    • Handle: RePEc:eee:jaitra:v:128:y:2025:i:c:s0969699725001085
    DOI: 10.1016/j.jairtraman.2025.102845
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