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The Importance of Air Transport to the Maldives

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The Importance of Air Transport to the Maldives THE IMPORTANCE OF AIR TRANSPORT TO THE MALDIVES The air transport sector makes a major contribution to the Maldives’s economy There are different ways of measuring air transport’s impact on an economy. We look at three: the jobs and spending generated by airlines and their supply chain, the flows of trade, tourism and investment resulting from users of all airlines serving the country, and the city pair connections that make these flows possible. All provide a different but illuminating perspective on the importance of air transport. DIRECT SUPPLY EMPLOYEE TOURISM 73,000 CHAIN SPENDING SUPPORTED BY THE JOAIR TRANSPORTBS SECTOR $3.1 GROSS VALUE ADDED BILCONTRIBUTIONLION TO GDP 5,000 1,000 1,000 67,000 JOBS JOBS JOBS JOBS 58.8% SUPPORTED BY AIR TRANSPORTGDP & FOREIGN TOURISTS ARRIVING US $139 m US $11 m US $15 m US $3 bn BY AIR Source: Oxford Economics 1 GROSS VALUE ADDED The air transport sector consumer goods and services. Maldives. Spending by foreign supports... Foreign tourists arriving by air to tourists supports a further US $3 the Maldives, who spend their billion of the country’s GDP, Airlines, airport operators, airport money in the local economy, totaling US $3.1 billion. In total, on-site enterprises (restaurants are estimated to support an 58.8 percent of the country’s and retail), and air navigation additional 67,000 jobs. In total GDP is supported by inputs to the service providers employ 73,000 jobs are supported by air air transport sector and foreign 5,000 people in the Maldives. In transport and tourists arriving by tourists arriving by air. addition, by buying goods and air. services from local suppliers the sector supported another 1,000 ...and spending jobs. On top of this, the sector is estimated to support a further The air transport industry, 1,000 jobs through the wages it including airlines and its supply For forecasts of the industry’s pays its employees, some or all of chain, are estimated to support GDP and jobs contribution over which are subsequently spent on US $165 million of GDP in the the next 20 years see page 4 The importance of air transport to the Maldives | 2 Air transport facilitates flows of goods, investment and people US 2. bn US 3.3 bn FEIGN TIST US 4.3 bn EPENDITE DI EXPTS Note: Data relate to all modes of transport. Foreign direct investment (FDI) figure represents cumulative inward stock at the end of 2017 Source: UNCTAD and World Bank 2 The most important benefits from and the economy can be seen economic flow, stimulated by air transport go to passengers from the spending of foreign good air transport connections, is and shippers and the spillover tourists and the value of exports foreign direct investment, creating impacts on their businesses. The (though note these figures include productive assets that will value to passengers, shippers all modes of transport). A key generate a long-term flow of GDP. Top five international tourist Top five busiest direct flights Top five busiest air cargo arrivals (all modes of transport) arrivals routes by country of residence 3 1. People’s Republic of China 1. Sri Lanka 1. Qatar 2. Germany 2. United Arab Emirates 2. United Arab Emirates 3. United Kingdom 3. India 3. Sri Lanka 4. Italy 4. Singapore 4. Singapore 5. India 5. Thailand 5. Hong Kong (SAR), China Source: UNWTO and IATA 2 Annual passenger flows by region (origin-destination, ‘000s) 5 1 14 Asia-Pacific is the largest market for passenger flows to the Maldives, followed by 221 Europe and the Middle East. 2.2 million passengers arrived to 1 the Maldives from Asia-Pacific (74.1 percent of total), 588 thousand passengers arrived from Europe (19.6 percent of the total) and 148 thousand passengers arrived from the 5 Middle East (4.9 percent). Source: IATA Direct Data Solutions 3 | The importance of air transport to the Maldives Air transport connects the Maldives to cities around the world Air transport generates benefits to consumers and the wider economy by providing speedy connections between cities. These virtual bridges in the air enable the economic flows of goods, investments, people and ideas that are the fundamental drivers of economic growth. Map of the Maldives air connectivity, by its largest markets (segment basis) 4 Europe -6% Middle East 5 Asia Pacific Legend 23 10.5 5.25 2013 2018 0 estination-Weighted Seats Available er 000 eople 4 IATA’s measure of how well a country is connected connectivity at a regional level and how it has to economically important cities around the world evolved. The Maldives connections to the Middle is shown above. The map shows the Maldives East have grown the fastest over the five past years. Number of international city pairs direct service in the top ten countries by passenger numbers in the world 5 INTENATINAL DESTINATINS24 0 United States INTENATINAL24 SERVED 5 2 People’s Republic of China DESTINATINS SERVED 5 0 Japan 1 United Kingdom 11 6 India 11 CIT PAIS NME IN THE TP 1 PERATING 0 Indonesia CIT PAISCNTIES NME AILINES LAN51DINGS AND 0 Spain IN THE TP 1PASSENGE PERATING CNTIES NMES 5 AILINES 51TAES 1 Germany PASSENGE LANDINGS AND 5 TAES 0 Brazil NMES 34 1 France 34 Source: IATA, Aviation Benefits Beyond Borders 2018 report The importance of air transport to the Maldives | 4 Forecast scenarios for passenger traffic, jobs and GDP footprint 6 Air transport market in the Maldives is forecast PASSENGES US GDP JOBS under the “current trends” scenario to grow by 1 1 261 154% in the next 20 years. This would result in an 21 additional 4.7 million passenger departures by urrent 23 1 2038. If met, this increased demand would support Trends approximately US $8 billion of GDP and around Upside 110 92,000 jobs. ownside 6 6 11 1 Source: Oxford Economics (all currency is in the United States dollars at 2018 prices). 2 FDI (Foreign Direct Investment) and exports data relates to 2018, foreign tourist expenditure data relates to 2017. 3 Arrivals of non-resident tourists at national borders or in all types of accommodation establishments, by country of residence. 4 The air connectivity scores reported are total destination weighted seats per 1000 people. IATA developed the Air Connectivity Indicator calculated based on the total route capacity (in terms of seats available) weighted by the destination airport’s relative capacity (calculated as the ratio of seats available at that airport relative to the capacity at the airport with most available seats) divided by the population size of the country with a 0.15% of connectivity threshold in 2013. 5 A threshold of at least one flight per week is applied. 6 Passengers are counted as departures, including connections. The passenger forecasts are based on the IATA 20-year passenger forecast (April 2019). Data on GDP and jobs 2018 are from Oxford Economics. GDP and jobs forecasts are from IATA Economics. * All data relate to 2018 or most recent unless stated otherwise. THE IMPORTANCE OFThe importance of air transport to Maldives | 2 3 | The importance of air transport to Maldives AIR TRANSPORT TO Air transport facilitates flows of goods, Air transport connects Maldives to cities MALDIVESinvestment and people around the world Air transport generates benefits to consumers and the wider economy by providing speedy connections between cities. These virtual bridges in the air enable the economic flows of goods, investments, people and ideas that are the fundamental drivers of economic growth. 4 US $2.7 bn US $3.3 bn Map of Maldives’s air connectivity, by its largest markets (segment basis) FOREIGN TOURIST US $4.3 bn The air transportEXPENDITURE sector makesFDI a majorEXPORTS This report is one of contribution to Maldives’s economy For further information contact 2 There are differentNote: Dataways relate of to allmeasuring modes of transport air transport’s / Source: UNWTO, impact UNCTAD andon World an Bank economy. We look at three: the jobs and spending generated by airlines and their supply chain, the flows of trade, tourism and investment resulting The most important benefits from and the economy can be seen economic flow, stimulated by from users of all airlines serving the country, and the city pair connections that make these flows possible. air transport go to passengers from the spending of foreign good air transport connections, is Europe All provide a different but illuminating perspective on the importance of air transport. and shippers and the spillover tourists and the value of exports foreign direct investment,TOURISM creating -6% impacts on their businesses. The (though note these figures include productiveEMPLOYEE assets that will SUPPLY several that examine the value to passengers, shippers all modes of transport). A key generateSPENDING a long-term flow of GDP. DIRECT CHAIN 73,000 Middle Top five international tourist Top five busiest direct flights Top five busiest air cargo East SUPPORTED BY THE 58% arrivals (all modes of transport) JOAIRarrivals TRANSPORTBS routes SECTOR by country of residence 3 Asia- Pacific 1. People’s Republic of China 1. India 1. Qatar Legend 23% E-Mail: 2. Germany 2. People’s Republic of China 2. United Arab Emirates air transport sector’s 10.5 3. United Kingdom 3. Sri Lanka 3. Sri Lanka 4. Italy 4. Germany 4. Singapore 5.25 5. India 5. United Arab Emirates 5. Hong Kong (SAR), China 2013 2018 0 2 Source: UNWTO and IATA 67,000 Destination-Weighted Seats 1,000 JOBS Available Per '000 People 4 $3.1 450 JOBS GROSS VALUE ADDED [email protected] Annual passenger flows by regionBIL (origin-destination,CONTRIBUTIONLION ‘000s)5,000 JOBS importance around TO GDP JOBS IATA’s measure of how well a country is connected connectivity at a regional level and how it has to economically important cities around the evolved.
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