The Value of Air Transport for Africa: Oxford Economics

The value of air transport
for Africa
Oxford Economics study summary
27.08.2012
ACI Conference, Livingstone
To represent, lead and serve the airline industry
Air transport generates vital benefits
for any economy
 It provides critical connections to overseas markets,
facilitating the flow of:
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Trade
Tourists
Investment
Productivity-enhancing ideas
 Passengers and shippers see a direct benefit but additional
value is spread more widely through the economy
 Businesses can access global supply chains, direct
investment, new expertise, and achieve economies of scale
 Jobs are created, GDP is boosted and tax revenues are paid
by the industry’s activities
The connections provided by air transport are a
key asset for the economy – facilitating flows of
tourists, trade, investment, ideas
Jobs, GDP and tax revenues are supported
by air transport and tourism firms
Jobs
Tax payments
Wages
Profits
GDP
Passengers and shippers see direct value
and business can also globalize
Direct value from using air transport
Dell manufacturing plant
Austin, Texas
Businesses can
set up much more
efficient global
supply chains
Mexico
Keyboards
France
Soundcards
Japan
RAM Chips
CD-ROM Drives
Taiwan
Network Cards
Monitors
Cooling Fans
China
Power supplies
Malaysia
Floppy Drives
Hong Kong
Video Cards
Microprocessors
Singapore
SCSI Cards
Disk Devices
Globally air transport…
 Connects the world’s cities with over 36,000 routes
 Flies over 2.7 billion passengers and 50 million
tonnes of freight annually
 Direct employs over 5.5 million workers with an
industry turnover of more than $1 trillion
 If aviation were a country it would rank 21st in terms of
GDP, larger than some G20 members
 Flies each year goods worth $6 trillion (35% of world
trade)
 Including tourism the industry supports over 32
million jobs worldwide
Air transport in Africa supports 6.7 million
jobs and $67.8 billion of GDP
Air transport growth in Africa will be
strong
Success depends on how well connected
your economy is…and the competitiveness
of your infrastructure charges and taxes
‘Benefits of Air Freight’ poster campaign
‘Air Cargo makes it
Happen’
Multiple examples of
importance of air cargo,
including Kenyan flower
export industry
THANK YOU
VERY MUCH