3 Introduction

Airports are major economic assets to the regions around them and as such attract international recognition. Companies, attracted by connectivity, base themselves nearby. Jobs are created, both directly and indirectly. They can catalyse development and their critical role within national economies draws governments to invest in the infrastructure around them.

With these benefits, how those regions around airports are defined is of crucial importance. What is the functional economic area around an airport? How does this foster the development of industry clusters? Does branding this area bring in investment? These questions are extremely pertinent. They help us understand how an area can be positioned and marketed at home and abroad, and what makes a coherent approach to doing so.

Through this report, Gatwick Airport seeks to understand how other domestic and international airports, and their immediate economic zones, position and market themselves.

Airport economic zones (AEZs) exemplify a focus on place. At the core of this is an attempt to define what that place does, what it should be known for, and why this should interest the wider world. Ways of doing this vary. Some are policy driven – such as enterprise zones or freeports. Others are network based, drawing together partners to act in a coordinated manner – like the UK Innovation Corridor. Each seeks to articulate a set of identifiable attributes which makes their place stand out against the rest. And despite different methods of achieving this, the imperative behind doing so is remarkably consistent – competition.

This may be national competition. Domestic airports compete against each other to attract airlines that are seeking a UK location. Here, airports need to tell a compelling story about their airport’s operation and capability, and about the region that surrounds it. Especially in the context of economic recovery from the pandemic, jostling among airports to attract airlines is heightened. Those airlines are looking more carefully at their decisions. Opportunities for diversification are key. Where they once may have focused heavily on leisure travel, business and cargo markets are rising in importance. Therefore, the industry surrounding the airport is crucial. Catchment areas and population demographics likewise.

Regions themselves are also competing. Place-based initiatives and regional growth are under renewed focus with the Levelling Up agenda. More places than ever are competing to attract the attention of central government and private investors. Each needs a message – a story it can tell and promote to these parties.

Competition is also increasingly global. Airports, as fundamental enablers of the globalised economy that defines the 21st century, are more aware of this than most. Capital, companies, and consumers have such an array of options that to attract attention you need to stand out. The rise of emerging markets and changes in consumer preferences

add to this. New players are attracting investment, meaning airports need to be more vocal about their offer. Much of this stems from the trends of globalisation which define the modern world economy. It is also being increasingly driven by the need to shape a post-Brexit economy and a government with Global Britain ambitions.

Regions face the same challenges. Competition nationally for investment is fierce enough, but on the global market this becomes even more stark. Global companies and investors are unlikely to have an in-depth knowledge of the UK and its economy beyond London. AEZs are a way to resolve this – pairing the connectivity which brings people into a region with a story about that place.

What emerges, then, is the opportunity for airports and their regions to engage in a win-win scenario. Both are responding to national and global competition. Both need to stand out to attract investment. Both need ways of talking to new audiences which may be less informed on what their place is about. These shared challenges are what brings airports and their regions together in this manner. It is a symbiotic relationship which can benefit both parties.

The following chapters consider domestic and international examples of AEZs. Each zone is assessed according to a set of metrics outlined in the methodology section before each chapter.

Having explored these comparator examples, Chapter 6 turns to Gatwick’s own economic zone. Various definitions of this exist, so the chapter will consider three different variants of this.

Finally, a conclusions chapter reflects on the findings of the research.