The UK Department of Transport said today that the country is ‘set for a large ‘economic boost’ following a new landmark agreement with China to increase the number of direct flights between British regional airports and China by 50%.

 

The new agreement announced by UK Transport Secretary Chris Grayling is said to be the key to unlocking ‘huge expansion in routes from regional airports’, so boosting local economies by hundreds of millions of pounds by stimulating both new business and expanded tourism spending.

 

This new agreement is the result of successful discussions held back in October 2016, when the number of flights between the two countries was expanded from 40 to a maximum of 100.

 

A HUGE BOOST FOR REGIONAL AIRPORTS

Since then, the number of Chinese tourists visiting the UK has increased rapidly in the first half of 2017 to 115,000 – a rise of 47% between January and June, with tourist spending increasing by 54% to £231m ($308m).

 

 

Commenting on this huge new tourism boost, Transport Secretary Chris Grayling couldn’t resist linking the new initiative with Brexit: “These agreements are an important part of preparing Britain for a post-Brexit world and making sure we have access to key markets in the Far East, and they come at a time when our exports are growing and we continue to attract international investment.

 

“It just underlines that Britain will do well regardless of the outcome of the Brexit negotiations. The whole government is working to secure the best possible future relationship with the EU, and great progress has been made this week, but no one should believe that Britain’s future success depends on decisions taken in Brussels.”

 

REGIONAL AIRPORT STORES WILL NEED TO ADAPT RANGES

This new deal will now increase the number of flights between China and the UK from 100 to 150, with the UK government pointing out quite rightly that Chinese tourists represent some of the UK’s highest spenders, ‘staying longer and travelling more than visitors from other countries’.

 

The government points out that last year Manchester Airport launched the first direct regional flight between both countries, which is estimated to be worth an estimated £250m ($334m) in ‘economic benefits’ to the UK over a period of ten years.

 

The UK Department of Transport adds that in the same year that restrictions were relaxed, it was also agreed to allow an unlimited number of cargo flights to operate between the UK and China. As a result, over 74,000 tonnes of freight was transported between the UK and China by air in 2016 – a rise of 27% in 2016 when compared to 2015.

 

DYNAMIC IMPACT STUDY SHOWS CONTRIBUTION…

According to Manchester Airport, this news follows a dynamic economic impact study of Hainan Airlines’ service to Beijing from Manchester which shows evidence of a significant uplift in trade, tourism and inward investment, as well as boosting the North’s universities.

 

According to the study compiled by economic consultancy Steer Davies Gleeve, the study revealed that UK export values from Manchester Airport have increased by 265% to £200m ($267m) per month since the Hainan Airlines service started.

 

Correspondingly, the directly related visitor spend has risen to £140m ($187m) which is said to be ‘more than double the value expected prior to the launch’.

 

At the same time, ‘40% more people in the North are now travelling to China, than was the case prior to the Hainan service commencing and passenger volumes have risen by 15% since the launch.

 

International student numbers at Manchester University have also grown at twice the national average since the route was opened.