Assessing the economic impact of Southampton Airport

Southampton International Airport has developed a draft masterplan with the goal of bringing about growth in passenger numbers and an improvement in the passenger experience. Through the implementation of the masterplan, the airport will be better placed to attract new carriers and increase the number of destinations served.

Through desk‐based calculation of the economic impact of the airport and review of the wider evidence regarding the contribution of the airport to the local and regional economy, this study demonstrated the economic impact of realising the Southampton Airport Masterplan.

The economic reach of Southampton Airport is substantial. In addition to the airport’s direct economic contribution, value is spread more widely through the economy as a result of businesses accessing global supply chains, direct investment, new expertise and economies of scale.

To assess the economic footprint of Southampton Airport, our team estimated the four core channels through which economic impacts may be generated. These are direct, indirect and induced economic impacts, as well as the wider potential (known as the catalytic impact) for Southampton Airport to support the local, regional and national economy.

Successes and outcomes

Our study concluded that the combination of business activity at the airport, the activity of the supply chain and the wider consumer market, generated an economic footprint of more than £160m.

Assuming trend growth in passenger numbers and a programme of incremental improvements to the airport, this contribution could increase to £275m by 2037.

However, delivering the Masterplan could increase the annual economic contribution of the airport to £400m. On a cumulative basis, therefore, it can be expected to deliver over £1.8 billion to the economy in the twenty years to 2037.