Airport management will be privatised

The announcement came in the form of a government press release issued this evening after the close of business hours…but the impact of the news will be far reaching. After several years of negotiating with a subsidiary of Lufthansa Airlines to take over management of the Philip Goldson International Airport, Government has decided to award the contract to a local group. Exactly just how local the Belize Airport Concession Company Ltd. really is remains to be seen, as the press release refers only to “local and international investors.” What the company will do, however, is proceed with improvements and expansion of the facility that are crucial to the growth of Belize’s tourism industry and the development of new exports. These include lengthening the runway, expanding cargo handling and upgrading of the terminal. For government, the real benefit is the removal of the multimillion-dollar debt now on its books as the result of previous airport expansions. Those loans and any new ones will be repaid by revenues from landing fees, concession rentals, and the tax paid by all departing passengers. It is not known if that tax will be increased as a condition of the new contract, but for now the revenue outlook remains strong as tourism is booming and airline traffic is expected to grow steadily. According to the release, all current workers at the Belize Airports Authority will be guaranteed employment with the new management company.