Regarding local councils, guess how many grey nomads would turn up in their country towns if the main streets are wall to wall parking meters and the rest of the streets are signposted “permit only”? That’s right, not many would visit after the word got around. Why? Because parking fees are “grudge purchases” like insurance and fuel. You never get a good feeling from a grudge purchase, unlike buying chocolate. A lot of people bitterly resented grudge purchases and will go far out of their way to avoid them.
Given that parking fees are grudge purchases, you have to factor in the opportunity costs to arrive at the full cost of a decision.
[QUOTE]Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen by definition, they can be easily overlooked.[/QUOTE]
‘In airport terms, these are the aviation visits you don’t get, the aircraft related businesses that go elsewhere and the people who don’t migrate to your town because they have an aircraft and your Council decided to levy fees.
‘’When you total up these potential costs, it is no surprise how financially short sighted money grubbing through landing fees can be. aFor example an over night stop for me generally involves dropping approximately $400 into the local economy (accomodation $150. Car hire $90, Dinner and refreshments $50, refuelling $100 - $300). Mildura will never see that money, Wentworth (perhaps - they have landing fees), Kerang or Swan Hill will.
Last edited by Sunfish; 2nd May 2022 at 03:37.