Queenstown airport returns dividend to a community uneasy about more tourists

Wednesday, 22 August 2018

Should Queenstown consider diverting more visitors to places like Wanaka or Lumsden?

More than 2 million passengers a year arrive at Queenstown airport providing dividends to the community but locals are also alarmed about its expansion plans.

Local businessman and rich lister Sir Eion Edgar questioned the airport's plan to extend noise boundaries, buy some homes, and spend millions of dollars on mitigation such as double glazing.

Queenstown Airport chairwoman Prue Flacks with mayor Jim Boult, left, and airport chief executive Colin Keel recently welcoming the 2 millionth passenger flying from Auckland.

The airport's latest $14.9 million profit delivered a dividend of $5.4m to main shareholder Queenstown Lakes District Council - equivalent to $215 for every rateable property.

However Edgar said it was time the airport and council were practical and considered diverting more visitors to places like Wanaka or Lumsden.

Queenstown resident and businessman Sir Eion Edgar wearing his hat recently as chairman of Hawaiki Cable.

* Queenstown Airport wants to increase noise limits to allow for massive expansion**

Queenstown Airport Company board chairwoman Prue Flacks said that in addition to the aircraft noise proposal, signing a 100-year lease for Wanaka Airport for$14.5m created a platform for growth across the region.

Aircraft coming into Queenstown would continue to operate between 6am to 10pm but there would be more of them to allow for an increase from 21,000 flights each year to 41,600 flights (equating to around 5.1 million passengers) a year by 2045.

The number of ultra-wealthy people flying into Queenstown in their own private jets was steady at 488, while helicopter flights were slightly ahead of 2017. Queenstown Corporate Jet Services expanded its footprint by 60 per cent at its private jet passenger facility.

The number of airline passengers hit 2,140,669 a year in the year ending June 2018, up 13 per cent. Overseas visitor numbers were up 12 per cent to 596,276 and domestic passenger numbers up 14 per cent to 1,544,393.

Flacks said the airport company had invested more than $4 million in infrastructure, safety, and technology to streamline systems and improve the park-to-plane experience for customers and staff.

'We enhanced the customer experience with the launch of the Park and Ride, new wayfinding signage, and expanded pop-up food and beverage offerings.'

Investment in technology included a new safety management system, real time parking tracking, new flight information display screens, and queue time monitoring at the security screening point.

The company also launched a Chinese language version of the Queenstown Airport website to better communicate with Chinese speaking visitors.

Other major projects included construction of an operations centre, terminal building improvements, and new equipment.

Revenue over the year was ahead 17 per cent to $45.7m, while the profit was up 24 per cent to $14.9m. Commercial revenue from property investments and concessions grew faster than aeronautical revenue.

The annual dividend came to $7.2 million paid to 75 per cent shareholder Queenstown Lakes District Council, and 25 per cent owner Auckland International Airport.

The council says the dividend income helps reduce rates rises.