Economy hit by poor air and sea links, say most businesses

The survey was a joint venture undertaken between the Institute of Directors and Chamber of Commerce for the PWC review of air and sea infrastructure.

A significant majority of respondents indicated that the islands’ evolving air and sea links had had a negative impact on the economy and business activity.

A significant majority also indicated that improved air and sea infrastructure would be needed for them to have confidence in Guernsey’s future, underlying the need for urgent investment in this area.

Priorities in relation to the island’s London services were identified as in need of competitive fares, an airline providing domestic and international connections, a choice of airlines and a Heathrow or London City Service.

Across the two organisations the survey attracted 477 respondents and included more than 1,000 written responses, which will inform the ongoing work of the IoD and Chamber in supporting government policy to improve the island’s air and sea links.

Chamber said the economic impact of air and sea links on the economy was difficult to quantify, and the IoD and Chamber would continue to work with government to support their efforts in this regard.

However, in order to illustrate the potential magnitude of the impact based on the survey results and written responses, the submission estimated that a 0.25% impact on GDP growth resulting from weak air and sea connectivity could result in a £100m. per annum impact on GDP by 2024, the end of the next political term.

Barrie Baxter, president of the Chamber of Commerce, said: ‘It is clear from survey responses that off-island connections are critical across the business community.

‘Almost every business relies on the island’s transport infrastructure in some way to connect with colleagues, owners, customers, suppliers and other counterparts located off island.

‘Whether travelling off-island or bringing others here, the strength of the island’s businesses depend on their ability to connect to build substantive business relationships with those off-island, especially in London and Jersey.’

John Clacy, chairman of the Institute of Directors, added: ‘The business community suffers along with the rest of society from weaknesses in the island’s air and sea links, but moreover a smaller economy resulting from poor infrastructure will exacerbate the social as well as economic challenges faced by the island in the future.

‘The survey results should assist the States in their strategic decision-making and investment.

‘We should be able to make our transport links a positive differentiator and we look forward to the results of the review.’