In regions that rely heavily on tourism, airports play an essential role as the first and last touchpoint for visitors, responsible for welcoming passengers and leaving them with a lasting, positive impression. But beyond facilitating those connections, airports are also major catalysts for economic growth.

This is the case at Lynden Pindling International Airport (LPIA) in The Bahamas, managed and operated by Nassau Airport Development Company (NAD), a member of Vantage Group. A recent Economic Impact Study found that its economic impact is nearly $4 billion, and the airport has directly and indirectly created more than 77,000 jobs. Together, these numbers represent a staggering 28% of the national GDP.

Many airports are centers for economic development, but as the main international gateway to The Bahamas, LPIA drives tourism, trade, and commerce — making it a critical driver of the broader region’s economic growth. LPIA is embedded closely with its local community, supporting a range of businesses and generating employment opportunities which in turn circulate wages within the local economy. The study highlights LPIA’s monumental contributions to The Bahamas, which can be seen in many ways:

Supporting Local Communities with Job Opportunities

The most direct way an airport promotes economic growth is by creating opportunities for employment. In 2023, the direct economic impact of operations at LPIA included an estimated 3,690 jobs such as airline employees, fixed base operators, aircraft maintenance, ground handling, customer service, and more. As airlines and businesses within the airport require more goods and services from suppliers, it will generate indirect impacts. Increases in employment will further boost spending, circulating funds into the local economy and stimulating broader economic impact — extending LPIA’s impact beyond the airport itself.

Fueling the Hospitality Industry Through Visitor Spending

Tourism is the top driver of economic growth and employment in The Bahamas. And visitor spending supports a wide range of local businesses, including hotels, restaurants, retail, local transportation, and the recreation and entertainment industries. In 2023, 1.3 million non-local tourists – both domestic and international – arrived by air through LPIA, contributing a total of $2.8 billion in visitor spending. This spending by non-locals directly supported 37,280 jobs and contributed $1.7 billion to GDP — or 12% of national GDP. As Nassau anticipates an increase in visitors, which LPIA can accommodate because of ongoing planned maintenance and upcoming redevelopment plans, the hospitality industry will realize even more benefits from visitor spending.

As Passenger Traffic Grows, So Will the Airport’s Economic Impact

Our redevelopment work with LPIA has equipped the airport to welcome up to 5 million travelers annually, which the airport is projected to reach by 2035, a 26% increase from 2023. The airport’s direct economic impact is projected to reach 4,300 jobs and $160 billion in GDP — a 17% increase from 2023. Increased airport activity and traffic will drive demand for more personnel to handle tasks such as flight operations, creating direct economic benefits through new employment opportunities.

Vantage Group led the initial three-phase, $410 million terminal redevelopment of LPIA, which expanded its terminal footprint and capacity to accommodate 5 million annual passengers, transforming LPIA into one of the region’s leading airports. Today, nearly 20 years later, Vantage still manages the airport, supporting its critical role in facilitating tourism, creating a sense of place, and enabling the airport to continue contributing to the nation’s economy.

Keeping the Economic Engine Running

To support the projected growth in tourism, strong continued airport management and redevelopment is important to ensuring a seamless passenger experience. A modernized, well-managed airport can be a tremendous economic engine. To take advantage of this opportunity, airport owners need partners that understand not only how to run a great airport, but can also harness an airport’s power and potential to strengthen the economy of an entire region or country.

Visit our Lynden Pindling International Airport Location Profile