"If we don't continue to grow, we will shrink."
That was the message Vancouver International Airport President and CEO Craig Richmond had for Richmond councillors on Monday as he presented an annual briefing on airport operations.
Richmond said passenger capacity increased by 2.1 per cent between 2012 and 2013 as a record 17.97 million passengers passed through YVR last year thanks in large part to growth in flights between China.
He said the competitiveness between airports to attract Chinese passengers is at an all time high and will only get more frenzied as China's middle class grows.
The former pilot turned airport executive said it is in the best interests of YVR to lobby the federal government to ease visa requirements for Chinese visitors to Canada.
"Canada risks losing its share of the international tourism market if it fails to keep pace," wrote Richmond in his report, also noting countries such as Australia have combined easier visa applications with aggressive marketing to attract Chinese tourists.
"They're kicking us all over the map," said Richmond.
According to the International Air Transport Association, flights through China will account for one quarter of new passengers globally over the next four years.
In order to stay competitive YVR must keep costs low, Richmond said. He noted that can be a challenge, so a venture such as a soon-to-be-built outlet mall near the Templeton Canada Line station will be an important revenue generator for the airport.
He also said certain airports in the United States, such as Bellingham International Airport, receive federal land subsidies while YVR is largely left to its own devices as a non-profit entity that has no governmental corporate oversight. Adding to costs is the fact Canada has some of the highest airport taxes in the world, according to IATA. Such taxes include a $20 airport improvement fee, included in tickets out of the province.
"Can I compete with Bellingham? No, not on price," said Richmond, noting roughly one million passengers flew out of Bellingham last year.
Richmond said while YVR had more flights to China than Los Angeles International Airport last summer the airport is still at the mercy of airlines that can choose where to locate their hubs.
