Globalisation Effects: the Kelowna International Airport Report

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Global economies can have a significant impact on various areas including airports and airlines. In Kelowna where we stay, YLW is not an exception. Cary Swoveland discussed the effects of the runway extension on the territory’s economy and the social life of its citizens (Swoveland 157). This was after the first proposition in relation to the expansion was presented and examined. Swoveland focused on the cost-benefit analysis of the effects of the runway extension and the development of a system of the additional flights.

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Kelowna International Airport
Fig 1: Kelowna International Airport

According to my research, the runway extensions were made in 2008 and that was when I arrived. The YLW was already being referred to as an international airport. The last time I checked, that airport was still under construction. People asked me why I decided to go there and I always answered that it was in order to facilitate the study and that the agents provided me with all kinds of information about the city. This meant that I had been provided with relevant information such as the fact that the availability of more international flights to the Okanagan facilitated tourism in the region.

Expansion of Kelowna International Airport
Fig 2: Expansion of Kelowna International Airport

It is possible to consider the development of the airport as insignificant for the other spheres and social communities of the region. However, the Kelowna International Airport (YLW) is a significant structure that has led to the development of the economy. This has also been influenced by the economies of different countries such as Great Britain, Germany and other Asians countries. The airport’s development can affect various aspects within the community. The development of the airport is important for the Thomson Okanagan region because its economy is connected not only with the airlines’ progress but also with the businesses of the whole community. The phenomenon can be explained by the fact that the airport enables various social interactions within the community. It also facilitates provision of services by the suppliers.

The Kelowna International Airport is a result of globalisation since globalisation leads to growth of some physical elements including transportation (airports). The airport has greatly influenced the Thomson Okanagan region and Canada as a whole. The impacts of the airport to the surrounding community may be described in three main levels. The first level is the direct impact. This may include the development of the companies or firms at the site where the airport is located. Examples of such amenities include restaurants and lounges.

Gift shops are also located within the airport and this has enhanced business and provided economic gains. The second level is the indirect impact. This may include some of the industries supported by YLW. An example includes the suppliers to the airport businesses. The last level is the induced level. This may be in terms of job creation as a result of the expenditures by the persons working for the airport directly or indirectly. For example, the employees in the airport may spend on home renovations.

The economic impact of the Kelowna International Airport may be assessed in different ways. One of the ways is assessing its impact on the dollar value of the products from the industries. Another way this could be done is by evaluating the number of years (working years) of employment generated due to the establishment of the airport. Another way of assessing the impact is by determining its impact on the GDP (value-added). Since the establishment of the Kelowna International Airport, at least 2730 jobs have been generated directly (by the year 2010). It also led to the increase in the gross domestic product and economic output. The average wages also increased significantly. Specifically, this number hit the $140 million mark.

The airport has also facilitated the growth of trade between the surrounding areas and the rest of the world. This may be described by how globalisation may affect the economy through facilitating the flow of goods and services. Tourism has also grown significantly courtesy of YLW. This is due to the provision of air links between Kelowna and other economies around the globe. The benefits have been experienced in Kelowna, the B.C. area and the entire Thomson Okanagan region. The daily commercial flights outside the country have facilitated transport across the borders. In 2010 alone, at over 1.3 million passengers were served by YLW. This explains how globalisation has a social effect in that it increases mobility or flow of people.

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The growth plan (expansion) for the airport was deemed important due to the ever-increasing passenger number. This growth plan was put in place in order to meet this passenger traffic demand. The funds to facilitate this were channelled by the Western Economic Diversification Canada. This expansion plan was meant to facilitate the inclusion of the international long-haul passenger airplanes. This was to be achieved through the upgrading of the airside aprons. Due to this growth, there will be more economic growth and the effects of globalisation will continue to be experienced.

Works Cited

Swoveland, Cary. “Benefit-Cost Analysis of a Proposed Runway Extension”. Management Science 27.2 (1981): 155-173. Print.

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IvyPanda. 2020. "Globalisation Effects: the Kelowna International Airport." June 3, 2020. https://ivypanda.com/essays/globalisation-effects-the-kelowna-international-airport/.

1. IvyPanda. "Globalisation Effects: the Kelowna International Airport." June 3, 2020. https://ivypanda.com/essays/globalisation-effects-the-kelowna-international-airport/.


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