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The Liberalisation of Air Transport and the Impacts on Travel and Tourism: The Case of the Azores Archipelago

Luís Silveira (), Norberto Santos and Claudete Oliveira Moreira
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Luís Silveira: Faculty of Arts and Humanities, CEGOT, University of Coimbra, 3004-531 Coimbra, Portugal
Norberto Santos: Faculty of Arts and Humanities, CEGOT, University of Coimbra, 3004-531 Coimbra, Portugal
Claudete Oliveira Moreira: Faculty of Arts and Humanities, CEGOT, University of Coimbra, 3004-531 Coimbra, Portugal

Sustainability, 2023, vol. 15, issue 5, 1-19

Abstract: This paper intends to fill a gap by analysing the changes wrought by full air liberalisation and its impacts on travel and tourism in the Azores archipelago. This study examines the Tourism Planning Plan of the Autonomous Region of the Azores (POTRAA), the new air transport model and several statistics related to air transport and tourism dynamics before and after the liberalisation, which took place in 2015. Time series analyses were used, and the period under analysis was defined (2013–2022). The results show that the entry of low-cost carriers (LCCs) resulted in flag carriers having to change to keep being competitive. Furthermore, a more extensive exposure of the destination through the LCCs created opportunities for all airlines. The results directly related to tourism include tourist numbers increasing in inter-island, national, and international flights, new routes opening to Europe and the USA, higher accommodation occupancy, and market diversification.

Keywords: tourism; air transport; liberalisation; impacts; islands (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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