Queenstown Airport debt will more than double between 2017 and 2019 to enable major infrastructure projects, including further terminal expansion.
However, ‘‘infrastructure challenges'' for the wider community are a key risk in terms of the airport's strategic objectives, which could ultimately result in a cap in ‘‘visitor demand'', the corporation's draft Statement of Intent (SOI) says.
The draft statement will be considered by the Queenstown Lakes District Council at its full meeting in Wanaka tomorrow.
Its financial forecast for the three years from 2017 shows closing debt will rise from $50.468 million to $109.98million.
In a statement to the Otago Daily Times, airport acting chief financial officer Martyn Dominy said that would enable the airport to undertake major projects, including runway widening and overlay in preparation for night flights, the first of which is scheduled to begin this winter.
The introduction of evening flights would mark a ‘‘step-change'' for the airport as a major local employment hub. It now employs 350 people, the draft SOI said. It would move to a ‘‘split-shift'' operating model to cater to the extended operating model, creating several new job opportunities.
Mr Dominy said other planned projects included apron overlay, a parallel taxiway, an increase in aircraft parking stands and ‘‘further terminal expansion''.
Other projects included upgrades to traffic flow management, forecourt and parking areas.
The draft SOI said economic benefits from the airport were almost $275million a year and ‘‘will grow''.
Passenger numbers were expected to grow at a rate of 5.8% per annum - long-range forecasts predicted domestic passengers would double and international passengers almost treble by 2016.
‘‘The need for investment and development of local infrastructure and tourism facilities to keep pace with this anticipated growth and maintain a quality visitor experience is a particular challenge which we are committed to working with the community to resolve,'' the draft SOI said.
Challenges included pressure on the availability and affordability of visitor accommodation in peak periods, pressure and congestion on transport and roading networks, high demand on services and a lack of affordable worker accommodation at a suitable standard.
All of those factors were having an impact on visitors and residents and could ‘‘eventually cap visitor demand''.
‘‘Furthermore, efforts to profess future development opportunities, such as building a convention centre, appear to be in a holding pattern.
‘‘In order to fulfil the growth and potential of the airport we need to develop mitigating strategies in a consultative and collaborative manner ...''
The draft SOI said as of June 30 last year the corporation's land, land improvements and buildings were valued at $182million, while its estimated commercial value was between $177million and $206million.
The forecasted figures in the draft SOI showed revenue was expected to grow at an average rate of 13.6% over the three-year period, from $30million to $44million, while the net profit after tax was expected to grow at 12.3%, from $10.5million to $14.8million.
The depreciation and amortisation expense would increase from $5.8million to $7.7million, reflecting the increase in asset capital works, while interest costs would double, from $2.2million to $4.4million, as a direct result of the debt increase.
