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Ing Costa Rica Economic Benefits of Air Transport in Costa Rica Economic Benefits of Air Transport in Costa Rica Acknowledgements Oxford Economics acknowledges the assistance from the International Air Transport Association (IATA) in the preparation of this report. Oxford Economics 2018 2 THE IMPORTANCE OF AIR TRANSPORT TO COSTA RICA The air transport sector makes a major contribution to the economy of Costa Rica 155,000 DIRECT SUPPLY EMPLOYEE TOURISM JOBS CHAIN SPENDING SUPPORTED BY THE AIR TRANSPORT SECTOR $5 BILLION GROSS VALUE ADDED CONTRIBUTION TO GDP 9,600 12,600 11,400 121,000 JOBS JOBS JOBS JOBS 9% GDP SUPPORTED BY AIR TRANSPORT & FOREIGN TOURISTS ARRIVING BY AIR US $0.71 US $0.36 US $0.33 US $3.6 BILLION GROSS VALUE ADDED It creates jobs... are subsequently spent on supports a further $3.6 billion consumer goods and services. gross value added contribution Airlines, airport operators, to the country’s GDP. airport on-site enterprises Foreign tourists arriving by air (restaurants and retail), to Costa Rica, who spend their This means that 9 percent of aircraft manufacturers, and air money in the local economy, the country’s GDP is in some navigation service providers are estimated to support an way dependent on the air employ 9,600 people in Costa additional 121,000 jobs. transport sector and foreign Rica.1 In addition, by buying tourists arriving by air. goods and services from local ...and generates wealth suppliers the sector supports another 12,600 jobs. On top The air transport industry is of this, the sector is estimated estimated to support a $1.4 billion to support a further 11,400 gross value added contribution jobs by paying wages to its to GDP in Costa Rica annually. employees, some or all of which Spending by foreign tourists 1 All figures relate to calendar year 2017 unless otherwise noted. The importance of air transport to Costa Rica Air transportation facilitates exports, foreign direct investment, and tourism Exports, FDI, and inbound tourist spending Air transport brings tourists in Costa Rica each year, services to other countries. and investment into Costa supporting restaurants, hotels, Over time, the country has Rica, and helps businesses transport providers, and accumulated $34 billion in trade their goods and services others who cater to tourists. foreign direct investment.2 around the world. Foreign In addition, Costa Rica exports tourists spend $3.8 billion $20 billion worth of goods and 9 The most popular direct flight links to Cost Rica: Country Flights per year 1. United States 10,300 1 2. Panama 5,000 3. Mexico 1,900 4. Guatemala 1,900 5. El Salvador 1,800 6. Nicaragua 1,700 7. Colombia 1,100 3 8. Honduras 870 9. Canada 840 4 10. Peru 370 8 6 5 2 7 10 US $34 US $3.8 US $20 BILLION BILLION BILLION INVESTMENT FOREIGN TOURIST EXPORTS EXPENDITURE MONEY FLOWING INTO COSTA RICA 2 FDI is stated in 2016 prices and exchange rates. The importance of air transport to Costa Rica The air transport sector connects people around the world 570,000 3.2 MILLION 3,200 2.3 MILLION Arrivals by region, number Number of direct flight destinations from Costa Rica to the of passengers world’s 10 biggest aviation markets, measured by passengers Latin America and the United States Caribbean and Europe 31 are the largest sources of China arrivals to Costa Rica after North America. Japan Some 3.2 million passengers United Kingdom arrived to Costa Rica from North America (52 percent India of the total), while 2.3 million 36 DIRECT FLIGHT passengers from other Latin Indonesia DESTINATIONS IN America and Caribbean THE 10 BIGGEST countries (38 percent of Spain AVIATION MARKETS the total), and 570,000 passengers arrived from Germany Europe (9 percent of the total). Brazil Italy The importance of air transport to Costa Rica Ease of travel, cost competitiveness, and infrastructure are vitally important Number of passengers travelling annually through the Key infrastructure facts about country’s main airports Coats Rica’s air transport Around 124,000 aircraft land 2 1 5.4MILLION every year. Juan Santamaria JUAN SANTAMARIA INTL 1 Intl airport carried the most 1.1MILLION 5 San Jose passengers. The airport helps 2 D. ODUBER QUIROS INTL 3 about 5.4 million people take flight annually. 3 59,400 LA MANAGUA 4 54,300 4 PUERTO JIMENEZ NUMBER OF OPERATING 16 AIRLINES 124,000 AIRPORTS LANDINGS AND 68,700 TAKEOFFS 5 TAMBOR 32 Infrastructure quality Survey evidence of 23 priorities toto adadvancevance the score: 5/7 infrastructure and ease of travel aviationaviation agenda:agenda 1. Align regulatory framework with Executives surveyed by the 1. Pglobalromo bestte and practices. align World Economic Forum regulatory framework with suggest that Costa Rica’s air 2. Ensureglobal competitivebest practi costsces. and Visa openness score3: transport infrastructure quality efficient administration in airports 3/10 ranks 7th out of 24 countries 2. Pthroughromot eopen inte rcommunicationnational with included in the survey in Latin sthetanda industry.rds and best practices America and the Caribbean towards development of and 59th globally. 3. nEnsureew ai rtransparencyports. and Cost competitiveness participation of the industry in score4: 6/10 Costa Rica ranks 16th out infrastructure planning and of 24 in Latin America development across Central America. and the Caribbean for visa openness and 9th for cost competitiveness. 3 Entry visa requirements for a tourism visit from worldwide source markets (10 = no visa required for visitors from all source markets, 0 = traditional visa required for visitors from every source market). 4 Based on ticket taxes, airport charges, and VAT (10=low cost, 0=high cost). August 2018 This report is one of For more information, please Oxford Economics prepared several that examine the visit www.IATA.org or contact: this report with IATA’s support. air transport sector’s importance around the Ian Saxon All currency values are in world. Access them all from [email protected] US dollars at 2017 prices IATA’s website. Tel: +44 (0)203 910 8064 and exchange rates, unless otherwise stated. Sources: IATA, Oxford London All figures pertain to Economics, UNCTAD, Broadwall House, 21 Broadwall, calendar year 2017, unless International Monetary Fund, London, SE1 9PL, UK otherwise stated. and national statistics. www.oxfordeconomics.com .
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