We think that paying 1 million euros per year will encourage the development of 5 new routes. But we know that FR will make a huge fuss in 2 years time when payments end, so we'll ask for 8 new routes for the money. In 2 years time, we expect 3 out of 8 routes to have failed, so we still get 5 new routes.
The result is that the local Govt doesn't have to get the choice of routes exactly correct - they leave it to the airline and passengers to decide. The local hoteliers don't care *where* the new tourists come from as long as it doesn't cannibalise existing air routes too much, just that they come
Maybe but when local hoteliers and others see real reductions in their trade with a consequent knock on in terms of employment and income they generally make their position very clear.
Remember a study of 5-6 years ago in Sunday Times (if I remember it correctly) which suggested average spend of weekend tourist on one of these routes was €200-300 including car hire / hotel / bar and restaurant etc etc..... makes a real difference within local economy if lose 100,000 passengers.