[Airports Must Thrive for Regions to Survive]③Beyond Transportation Facilities: Reviving Key Regional Infrastructure Despite Deficits

Why Japan Is Pouring Money Into Airports


Takaichi Cabinet Launches 'Regional Revitalization 2.0'

Expanded Investment in Regional Airports with Increased Budgets

Maximizing Non-Aviation Revenue Through Privatization

Japan has a total of 97 airports, nearly reaching 100. Many of these are located not in major metropolitan areas like Tokyo or Osaka, but in regional small cities. Despite the fact that quite a few airports are struggling with sharp declines in passenger numbers and deficits due to population decline, the Japanese government is expanding its investment in regional airports. This is because airports are seen as essential infrastructure to revive local economies that are on the verge of collapse.

The Japanese government's regional airport policy aligns with the national survival strategy known as "Regional Revitalization" (Chiho Sosei). As population decline and concentration in the Tokyo metropolitan area have intensified, regional airports have been designated as gateways to forcibly attract people, businesses, and capital to local areas. The key point is that airports are defined not merely as transportation facilities, but as core platforms for regional revitalization.

Regional Revitalization, which began under the Shinzo Abe Cabinet in 2014, has recently been expanded to "Regional Revitalization 2.0" by the Cabinet of Japanese Prime Minister Sanae Takaichi. The current administration increased the budget, which the previous cabinet had allocated at 200 billion yen, to 250 billion yen this year. Local governments can now autonomously pursue projects suited to local characteristics, such as building tourism-linked transportation networks centered around airports and fostering local industries, using grant funds.

One of the most notable success stories of Regional Revitalization is the "airport privatization (concession)." The Japanese government boldly transferred the management rights of regional airports, which had previously been operated rigidly by the state or local governments, to private operators. Currently, more than 10 airports nationwide, including seven in Hokkaido and Kumamoto Airport, are run under private management.

Whereas airports in the past were confined to their basic roles of aircraft takeoff and landing and passenger transport, privatized airports are now actively generating "demand" by transforming terminals into commercial and cultural spaces and directly developing local tourism products. Since aviation revenues such as landing and air traffic control fees are determined by international standards and cannot be freely adjusted, these airports have maximized non-aviation revenue by attracting famous restaurants and selling local specialties within the airport.

In particular, the way airport revenue is evaluated differs significantly from the approach in Korea. When assessing the performance of regional airports, Japan does not look only at aviation revenues such as landing fees. Rather, it precisely measures how much the airport has increased the tax revenue of nearby local governments and how much tourism spending has penetrated local businesses. Even if the airport itself is running at a deficit, if the airport generates substantial economic value for the entire city, it is eligible for government grants.

The proactive incentive system is also noteworthy. Regional airports provide subsidies, such as reductions in landing fees, to foreign airlines that open new routes. Furthermore, not only the airport corporation but also local governments, tourism associations, and local chambers of commerce form a consortium to jointly attract new routes. This is possible because the culture has been established that attracting airlines is viewed not as an achievement of the airport alone, but as a "strategy for the region's overall economic well-being."

The Takaichi Cabinet has also recently moved to strengthen the functions of regional airports. By prioritizing security as a core national policy task, the focus is on improving airport infrastructure so that regional airports can serve as operational bases for the Self-Defense Forces and the Coast Guard in times of emergency. Projects such as runway extensions, expansion of apron space, and modernization of air traffic control systems are being considered, which would also be advantageous in attracting international flights.

Ultimately, the Japanese government's focus on regional airports is not on the airports themselves. Rather, airports are seen as gateways that attract tourists, businesses, investment, and consumption to regional areas, serving as the starting point of a local growth strategy.

Hwang Yongshik, a professor at Sejong University’s School of Business Administration, said, "For an airport to thrive, the reason why people use that airport is crucial," adding, "There needs to be demand for tourism and industry in the region. In order to enhance airport competitiveness, the airport alone is not enough."

Professor Hwang further noted, "In Japan, since the evaluation indicators for airports are subdivided, there are many charming features within the airports themselves, and sometimes the airport itself becomes tourism infrastructure," adding, "The essence is that there must be many airport users, and this is not something the airport can achieve on its own."

Yun Moonkil, professor emeritus at Korea Aerospace University, emphasized, "Airports are strategic infrastructure that can drive regional development in conjunction with local communities," and stressed, "The most important thing is that local governments must prioritize policies on how to support and utilize airports."

Professor Yun added, "To use regional airports as engines for regional development, a governance structure that can integrate and coordinate decision-making by local governments, the central government, and the airport corporation is essential."

This content was produced with the assistance of AI translation services.