Cayman Islands: Authorities to spend hundreds of thousands upgrading airports

The Cayman Islands authorities Tuesday unveiled a multi-million greenback program to improve airport infrastructure accredited by Cupboard in 2014.

“I’m joyful to advise the nation that the method to replace our Airports Grasp Plan has been efficiently accomplished. This complete 286-page doc builds upon earlier airport grasp plans and clearly identifies the alternatives and constraints related to our current airport infrastructure and consists of suggestions for enchancment,” Tourism and Ports Minister, Kenneth Bryan, informed a information convention.

He stated in direction of the top of 2019, previous to the beginning of the coronavirus (COVID-19) pandemic, the industrial, enterprise, and vacationer sectors have been all experiencing vital development.

However Bryan acknowledged that whereas this was a superb signal for the financial system, it was additionally inserting vital stress on the airport methods and their infrastructure.

He stated quickly after taking over workplace in 2021, he had disclosed that work had commenced on updating the airport grasp plan, to information the continuing growth of the airports over the subsequent 20 years.

“In aviation phrases, Airport Grasp Plans are usually reviewed and up to date each 5 to seven years. The prevailing Cayman Islands plan was accredited by Cupboard in 2014 and had not been up to date since.,” he stated, noting that the Define Enterprise Case (OBC) introduced to Cupboard on Could 25 had been accredited.

“The Define Enterprise Case is a considerable part of the grasp planning course of and its objective is to look at every of the suggestions recognized within the plan and to offer the monetary evaluation and prices. As such, it’s a doc that Cupboard has taken the time to review and scrutinize in an effort to make its dedication. “

Bryan stated that 4 particular tasks have been granted approval by Cupboard and that they are going to be carried out on the Owen Roberts Worldwide Airport (ORIA), and the Charles Kirkconnell Worldwide Airport (CKIA).

He stated KYD$28 million (One Cayman Islands greenback=US$1.21 cents) can be used to increase the runway on the ORIA in addition to US$4.7 million will go in direction of bettering the air visitors management Surveillance at ORIA.

He stated $42 million had been put aside for the supply of a brand new normal aviation facility and $1.15 million can be utilized for enterprise Runway Finish Security Space works, generally generally known as RESA, on the CKIA.

“The entire price of those enhancement and growth tasks…quantities to $76 million and represents a big and crucial funding in our airport services, which function our worldwide gateways and home windows to the world.

“Your entire slate of suggestions outlined within the Enterprise Case name for an funding of $800 million over 20 years which isn’t possible to contemplate within the present financial atmosphere,” Bryan informed reporters.

He stated consequently, the federal government has strategically chosen the tasks which can be crucial to handle security and regulatory issues, present the best enterprise growth alternatives, which can be reasonably priced for the nation and that present a stable basis to help continued development within the tourism sector.

He stated having obtained the inexperienced mild from the Cupboard, the subsequent part can be for the event course of, that are public session, Environmental Impression Evaluation (EIA) and procurement.

“As is customary, the Cayman Islands Airports Authority (CIAA) will observe open, clear and aggressive procurement processes, making certain worth for cash is achieved for all phases of those tasks.

“On completion, they’re anticipated to ship vital financial advantages and can have a serious influence on our skill to strategically develop our tourism business over time,” Bryan stated, noting that the advantages embody elevated stay-over customer spending, elevated revenues for the Cayman Islands authorities, elevated alternatives for extra airlift into Grand Cayman, and better total profitability for the Cayman Islands Airports Authority.

“Given the importance of those tasks to the nation’s long-term financial success, the income required to fund the tasks can be derived from rising the terminal charge to 5 {dollars} in addition to introducing a brand new airport growth charge of $15.00,” he stated, including “you will need to be aware that the Airports Authority won’t require any funding from the federal government to finish these tasks”.

Bryan stated that the brand new airport growth charge can be relevant solely through the building interval, which is estimated to be six years from 2024 to 2029.

“Which means that neither the Airport Authority nor the federal government might want to borrow funds in an effort to cowl the estimated capital and working expenditure through the lifetime of the tasks.

“Moreover, I believe additionally it is price noting that from a aggressive standpoint, an evaluation of comparable airports within the Caribbean area reveals that the Cayman Islands passenger-related airport charges would come extra in keeping with locations comparable to Jamaica and the Bahamas. In different phrases, we might not be pricing ourselves out of the market,” he added.

Bryan, who can also be chairman of the Caribbean Tourism Group (CTO), stated a vital a part of the federal government’s accountability in managing the tourism business, is to result in options that can increase the island’s skill to retain its market share as a number one tourism vacation spot.

“Tourism is without doubt one of the best business’s on the planet and it’s due to this fact crucial that we not solely preserve the standard of the services and providers that the Cayman Islands provides, however that we additionally convey them in keeping with one of the best on the earth, to maintain tempo with the altering expectations and necessities of our guests.

“International locations throughout the area, that we compete with every day, comparable to Anguilla, Antigua, Aruba, Bahamas, Barbados, BVI, Jamaica, and the Turks & Caicos Islands, having acknowledged the necessity for airport development to extend tourism, both have made or are within the course of of constructing, the related investments and incentives to place themselves for the long run growth of their tourism business.”

He informed reporters that with as much as 25 per cent of the Cayman Islands gross home product (GDP) being derived from tourism, managing the capability, functionality and competitiveness of our airports is a strategic crucial that the Cayman Islands can not ignore.

He stated within the case of the Owen Roberts Worldwide Airport, there aren’t any Air Site visitors Administration (ATM) surveillance methods in place, which implies air visitors is being managed manually.

“Managing air visitors on this method isn’t solely outdated however reduces effectivity and will increase the extent of security dangers. This can be a key space of concern for the CIAA and is a security problem that must be addressed as a precedence.

“Over in Cayman Brac, the Charles Kirkconnell worldwide airport is at the moment working below an exemption to airport regulatory requirements because of the inadequate size and power of the Runway Finish Security Space or RESA. That is one other space of concern that additionally must be rectified as a precedence,” he added.

CMC/