Development of Aruba airport: a privatisation cost model Available to Purchase

Aruba is a Caribbean island situated 19 miles from South America (see Fig. 1). It is 19 miles long, 6 miles wide and home to 90 000 inhabitants who are influenced by Dutch, Latin and US cultures. The warm arid climate and seven miles of white sand beaches surrounded by turquoise sea are Aruba's natural resources and attract year round holiday makers particularly from North America. When Exxon closed its oil refinery in 1985, the Aruban Government concentrated on their natural resources by encouraging tourism growth. Tourism is the largest employer and principal source of foreign exchange income, contributing to over one third of the GDP.1 Significant hotel resort and casino development since 1985 and the resulting increase in scheduled and chartered flights has enabled the number of overnight visitors to increase from 232 000 in 1987 to over 650 000 in 1997.2 The operational efficiency of the existing partly air-conditioned airport facility, completed in 1972, was insufficient and passenger complaints concerning queuing and other conditions increased as the 1980s progressed.