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How New Airport Infrastructure Promotes Tourism: Evidence from a Synthetic Control Approach in German Regions

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  • Luisa Dörr
  • Florian Dorn
  • Stefanie Gäbler
  • Niklas Potrafke

Abstract

We examine how new airport infrastructure influences regional tourism. Identification is based on the conversion of a military air base into a regional commercial airport in the German state of Bavaria. The new airport opened in 2007 and promotes travelling to the touristic region Allgäu in the Bavarian Alps. We use a synthetic control approach and show that the new commercial airport increased tourism in the Allgäu region over the period 2008-2016. The positive effect is especially pronounced in the county where the airport is located. Our results suggest that new transportation infrastructure promotes regional economic development.

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  • Luisa Dörr & Florian Dorn & Stefanie Gäbler & Niklas Potrafke, 2019. "How New Airport Infrastructure Promotes Tourism: Evidence from a Synthetic Control Approach in German Regions," ifo Working Paper Series 318, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_318
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    Keywords

    Airports; tourism; regional development; transportation infrastructure; synthetic control method;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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