Economic appraisal of Bathurst Regional Airport
.id’s economic appraisal of upgrades to the Bathurst Regional Airport helped Bathurst Regional Council to secure $2.5m in funding from the National Stronger Region Fund.
The airport contributes to long-term economic development, attracts new businesses and allows for continued growth of the region’s visitor economy. The national funding will be matched dollar for dollar by Bathurst Regional Council.
What are the economic benefits and economic impacts that could be generated by a $5 million upgrade to the Bathurst Regional Airport? How does this project contribute to economic growth in the region? How does the project support disadvantage in the region?
The .id solution
.id developed a methodology to evaluate the economic and wider benefits of the proposed upgrades to the Bathurst Regional Airport.
To capture the full benefits of the project .id undertook:
- Benefit Cost Assessment
- Economic Impact Assessment
- Social Impact and Disadvantage Assessment
- Economic Analysis to highlight the need for the project
The framework that .id developed to quantify the benefits and costs of the upgrades is consistent with Treasury guidelines for the evaluation of capital projects. The benefit cost assessment estimated benefits and costs over a 20-year period and included Sensitivity Analysis to test the robustness of the framework.
The key benefits quantified included:
- Net Present Value
- Benefit Cost Ratio
- Lease Revenue
- Aircraft Movement Revenue
- Cost Savings
- Induced Revenue Opportunities
- Residual Value
Outcomes – data driven success
The economic appraisal found that the proposed upgrades would make a valuable contribution to the Bathurst regional economy. The upgrades allow the airport to continue to grow, meet legislative requirements and deliver community benefits such as:
- generate economic output
- diversify the economic base
- attract new private investment
- increase council revenue
- create new jobs
- create cost savings for airport users (e.g. Rex Airlines and Australian Air Force Cadets)
- support tourism visitation due to increased efficiency at the airport