Advances in Economics, Business and Management Research, volume 801st International Conference on Business, Economics, Management Science (BEMS 2019)SWOT Analysis of the Development of Guangzhou AirportEconomic ZoneMing Su a, *, Jing Zhao bGuangdong University of Foreign Studies South China Business College, Guangzhou, 510545,China.a, * [email protected], b [email protected] The development of airport economy and the construction of airport economic zone areimportant targets for promoting the construction of international aviation hubs and are of greatsignificance to the construction of Guangzhou hub cities. Through the SWOT analysis of GuangzhouAirport Economic Zone, the paper points out problems in management system mechanism, landsupply and supporting facilities, and proposes measures such as planning aviation hub planning,building airport industrial parks, establishing Guangdong-Hong Kong-Macau airport alliance, andoptimizing airspace structure.Keywords: Guangzhou; Airport Economic Zone; Status; SWOT; Countermeasures.1. Development Status of Guangzhou Airport Economic ZoneThe core of the Guangzhou Airport Economic Zone is Baiyun International Airport, which wasofficially put into use in August 2004. By the end of 2018, Baiyun Airport's route network has coveredmore than 200 navigation points around the world, reaching more than 40 countries and regionsaround the world, with nearly 300 routes, covering most of the major cities in the world.In 2018, the passenger throughput was nearly 70 million, which ranks 13th in the world, including17.3 million international passenger throughputs.At present, with Baiyun Airport as the core, a number of aviation-related enterprises have beengathered in the Guangzhou Airport Economic Zone, such as the airline headquarters represented byChina Southern Airlines, and the aviation logistics enterprises represented by FedEx and SF, withGAMECO and STAG as the representative of aviation maintenance enterprises.As a representative of the cross-border e-commerce enterprises represented by IZP and YiJiangnan, the financial leasing enterprises represented by Dongfeng South Financial Leasing andGuangdong Green Financial Holding Group, took the initial form of the industrial chain.2. SWOT Analysis of the Development of Guangzhou Airport Economic Zone2.1 The Advantages of Guangzhou Airport Economic Zone (S)2.1.1 Traffic LocationThe Airport Economic Zone is in the northern part of megacity-Guangzhou. It is the core of theGuangdong-Hong Kong-Macao Greater Bay Area. Seven high-speed highways such as the AirportHighway and the G1501 Expressway pass through it. Metro lines such as Guangzhou Metro Line 3and Line 9 run through it.The Airport Economic Zone is within 60 km of Qingyuan and Foshan, and the expressway is veryconvenient. The airport is a two-hour flight from Shanghai and Xi'an, and a three-hour flight fromBeijing and major Southeast Asian countries. Obviously, it has great advantages of traffic location.Copyright 2019, the Authors. Published by Atlantis Press.This is an open access article under the CC BY-NC license 69

Advances in Economics, Business and Management Research, volume 80Table 1. SWOT Analysis Table for the Development of Guangzhou Airport Economic ZoneStrengthsWeakness(1) Traffic location(2) Natural environment(3) Government policy(4) Airport enterprises(5) Hinterland economy(1) Management system and mechanism are rigid(2) Insufficient land supply(3) Lack of supporting facilities(4) The weak foundation of aviationmanufacturingOpportunities(1) "One Belt, One Road" strategy implementation(2) Establishment of Guangdong Free Trade Zone(3) The Airport Economic Demonstration Zone was approved(4) Construction of Guangdong-Hong Kong-Macao GreaterBay AreaThreats(1) Rapid development of other modes oftransportation(2) Modern service industry has just started(3) Competition of adjacent airport(4) Restrictions of airspace and navigation rights2.1.2 Natural EnvironmentIn the 116 square kilometers area of Guangzhou Airport Economic Zone, there are no mountainsand low valleys, which are basically plains and hills, and the terrain is very flat.The Airport Economic Zone is adjacent to Guangzhou's mother river—Liuxi River. The airport isrich in vegetation, with fresh air, birds and flowers, which is suitable geographical and ecologicalconditions of the airport choosing.2.1.3 Government PolicyThe Guangzhou Municipal Government has given policy support to the development of the airporteconomic zone from the aspects of headquarters economic settlement, scale operation contribution,special fund support, and introduction of high-end talents.In August 2017, the Guangzhou Airport Economic Zone launched a “7 1” series of incentivepolicies for enterprises and individuals who entered the company, including high-end manufacturing,modern services, cross-border e-commerce, and financial leasing.[1] The various preferential policiespromulgated by the government have attracted more industries and talents related to the airport,forming agglomeration effects in the airport economic zone.2.1.4 Airport EnterpriseIn 2009, the FedEx Asia-Pacific Transit Center officially opened at Baiyun Airport. At present,more than 70 airlines such as China Southern Airlines, Longhao Airlines, China Eastern Airlines, 9Air Co., Ltd. and Qatar Airways have settled in the Guangzhou Airport Economic Zone. At present,nearly 800 companies have registered in the Guangzhou Airport Economic Zone. Among them,Guangdong YT Business Aviation Service Co., Ltd is fully arranging the entire industrial chain ofbusiness aviation services, building a business aviation service network, and striving to become a"domestic leading, world-class" business aviation integrated service provider. It can be said that thegathering of many well-known airport enterprises in the airport economic zone will help the divisionof the airport industry to form a complete aviation industry chain and enhance the competitiveness ofthe Guangzhou International Aviation Hub.2.1.5 Hinterland EconomyThe main radiation range of Guangzhou Airport Economic Zone is the Pearl River Delta,Guangdong-Hong Kong-Macao Greater Bay Area, and it also has a certain influence on the Pan-PearlRiver Delta region.The Pearl River Delta is the one of regions that has the most active economic developments inChina, GDP of which accounts for more than 85% of Guangdong Province. And it has laid outindustries with high aviation directivity such as textiles and clothing, electronic information,biomedicine, aviation parts and jewelry. Guangdong-Hong Kong-Macao Greater Bay Area has a totalarea of 56,000 square kilometers, a total population of 66 million, an economic scale of over 140million yuan, and a total foreign trade volume of over 1.8 trillion yuan, which is equivalent to the270

Advances in Economics, Business and Management Research, volume 80world's 12th largest economy. In 2018, the passenger throughput of Guangdong, Hong Kong andMacau airports totaled 213 million passengers, and Guangzhou counterpart accounted for one-thirdof the total.2.2 The Weakness of Guangzhou Airport Economic Zone (W)2.2.1 Management System and Mechanism are RigidTaking China Southern Airlines as an example, its main base is located at Baiyun Airport, withthe largest number of transport aircraft and the most developed route network. China SouthernAirlines is a state-owned enterprise directly under the Civil Aviation Administration of China. It isnot under the jurisdiction of the local government, and its general manager is at the bureau level.Guangzhou Baiyun International Airport Co., Ltd., which operates Baiyun International Airport, is astate-owned enterprise directly under the Guangdong Airport Management Group. The administrativelevel of the general manager is the deputy department level.At the same time, the Guangzhou Airport Economic Zone Management Committee, which isresponsible for the unified management of the Airport Economic Zone, belongs to the dispatchingagency of the Guangzhou Municipal Government, and the administrative level of the AirportCommittee is the deputy department level.Due to the different departments and administrative level. The administrative level of theGuangzhou Airport Administration is at the same level or slightly lower than other major institutionsin the Airport Economic Zone. As a result, the management communication and coordination ofairport-related matters are not smooth enough. The unified management mechanism for the airporteconomy in the true sense is still forming a run-in.2.2.2 Insufficient Land SupplyThe Guangzhou Airport Economic Zone has a total area of 116.069 square kilometers, of whichSouthern Airlines and Baiyun International Airport covers an area of 41.64 square kilometers.The Airport Economic Zone involves 18 administrative villages in the four streets of Baiyunhuadu.The existing non-construction land is 17,763,800 square meters, the construction land is 24.31 millionsquare meters, and the village construction land is 4,350,600 square meters. At present, there is lessland available for development.There are only 20 registered cultural relics units in the Baiyun Airport area. According to the recentdevelopment, the newly acquired land will be 11.55 million square meters. However, the landacquisition and demolition are difficult and costly. The demolition and resettlement tasks are heavy,and the land consolidation time is long.The phenomenon of illegal construction of villagers in the vicinity has been repeatedly banned,and the supply of land cannot meet the needs of settlement of some high-end airport projects.2.2.3 Lack of Supporting FacilitiesThere are several parking lots that are far away from the departure and arrival halls. It takes 10-20minutes to walk, which causes violations to occur when parking in high-speed emergency lanes.Due to the large traffic volume, traffic jams can often be seen in the Guangzhou AirportExpressway northbound direction during holidays and peak hours, causing passengers to miss thedeparture time.In addition, high-speed rail transfer is difficult. It takes 70 minutes from Guangzhou South RailwayStation to take the subway to Baiyun International Airport, and it takes more than 1 hour to take thehigh-speed train. From Guangzhou North Railway Station to Baiyun International Airport, not onlydoes it take more than 30 minutes of driving through expressway, there are also very few high-speedtrains that stop at Guangzhou North Railway Station. [2]2.2.4 The Weak Foundation of Aviation ManufacturingThe construction of an international aviation hub needs to be supported by industries such asaviation manufacturing and aviation maintenance with high directivity and high technology content.271

Advances in Economics, Business and Management Research, volume 80At present, there are very few backbone enterprises related to aviation manufacturing inGuangzhou Airport Economic Zone. The existing ones are mainly concentrated in the aviationmaintenance industry. For example, YT Airlines can carry out regular inspection as well asmaintenance and modification of helicopters, and “Customer Reform” carried out by STAG, it alsoincludes that GAMECO overhaul the Airbus A380 and so on.In contrast, the Tianjin Airport Economic Zone has the aircraft assembly of the Airbus A320 andthe aircraft assembly of the China Commercial Aircraft C919 are possessed by Shanghai AirportEconomic Zone.It can be said that the Guangzhou Airport Economic Zone is currently weak since aviationmanufacturing such as aircraft design, aircraft assembly and aircraft spare parts.2.3 The Opportunities of Guangzhou Airport Economic Zone (O)2.3.1"One Belt, One Road" Strategy ImplementationIn 2013, President Xi Jinping proposed the strategic concept of “One Belt, One Road”.In March 2015, the “Vision and Action for Promoting the Joint Construction of the Silk RoadEconomic Belt and the 21st Century Maritime Silk Road” clearly pointed out that it is necessary tostrengthen the construction of Guangzhou port city and strengthen the function of Guangzhou'sinternational hub airport.Under this opportunity, with the implementation of the “One Belt, One Road” strategy, Guangzhoumust not only become an international shipping hub, but also become an international aviation hub.It must increase infrastructure investment in the airport economic zone and improve customsclearance and expand the international route network and promote the continuous upgrading of theairport industry. [3]2.3.2 Establishment of Guangdong Free Trade ZoneIn December 2014, the Guangdong Free Trade Zone was formally established with the approvalof the State Council.The open innovation of the Free Trade Zone will closely link Guangdong with the countries orregions along the “Belt and Road” strategy and improve the level of Guangzhou's opening andpromote bilateral investment and trade with countries and regions along the route.With the further strengthening of high-end business and trade cooperation, the continuous increasein the volume of import and export of goods will bring more passengers and goods to the GuangzhouAirport Economic Zone.In addition, the Guangdong Free Trade Zone is positioned as an important hub for the “21stCentury Maritime Silk Road”, which will not only further strengthen the connection between theseaport and the airport but also promote sea-air and air transportation and trade facilitation. It willalso accelerate the development of the airport economic zone.2.3.3 The Airport Economic Demonstration Zone was ApprovedIn January 2017, the National Development and Reform Commission and the National CivilAviation Administration agreed to establish the Guangzhou Airport Economic Demonstration Zone.The successful approval of the demonstration zone is conducive to enhancing the internationalcompetitiveness of Guangzhou Baiyun International Airport as a globa