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IATA Air Connectivity Report

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IATA Air Connectivity Report 1 Table of Contents Executive Summary ................................................................................................................................................. 4 1. Importance of Air Connectivity ....................................................................................................................... 8 Why does air connectivity matter? ................................................................................................................ 8 Different types of air connectivity? ............................................................................................................. 10 What is air connectivity? ................................................................................................................................. 11 What are the benefits of air connectivity? ................................................................................................ 12 2. IATA Air Connectivity Index ........................................................................................................................... 16 Types of air connectivity................................................................................................................................. 16 IATA air connectivity index............................................................................................................................. 20 Other air connectivity measures .................................................................................................................. 22 3. COVID-19 Impact on Air Connectivity ........................................................................................................ 26 Challenges in restoring air connectivity .................................................................................................... 33 Tourism and air connectivity ......................................................................................................................... 36 Trade and air connectivity .............................................................................................................................. 37 Travel bubbles’ role in restoring air connectivity ................................................................................ 38 4. Global Air Connectivity Overview ................................................................................................................ 40 4.1. Air connectivity by region ............................................................................................................................... 40 4.2. Air connectivity by country ............................................................................................................................ 42 4.3. Air connectivity by city .................................................................................................................................... 47 5. Regional Air Connectivity Overview ............................................................................................................ 48 5.1. Africa ...................................................................................................................................................................... 48 5.2. Asia Pacific .......................................................................................................................................................... 56 5.3. Europe ................................................................................................................................................................... 64 5.4. Latin America and the Caribbean ................................................................................................................ 72 5.5. Middle East .......................................................................................................................................................... 80 North America..................................................................................................................................................... 87 6. Improving Air Connectivity ............................................................................................................................. 92 6.1. Factors that impact air connectivity ........................................................................................................... 92 6.2. Air transport policy and air connectivity ................................................................................................... 92 6.3. Air connectivity and externalities ................................................................................................................ 93 Appendix A: Air connectivity scores for countries ..................................................................................... 95 Appendix B: Air connectivity per population ............................................................................................. 104 Appendix C: Air connectivity per GDP .......................................................................................................... 111 Appendix D: International air connectivity ................................................................................................. 117 Appendix G: Definition of statistical regions ............................................................................................. 126 References ............................................................................................................................................................. 128 2 Abbreviations ACI Airports Council International ATRCI Air Transport Regulatory Competitiveness Indicators EU European Union GCC Gulf Co-operation Council GDP Gross Domestic Product IATA International Air Transport Association ICAO International Civil Aviation Organization PPE Personal Protective Equipment PPP Purchasing Power Parity SAATM Single African Air Transport Market VFR Visiting Friends and Relatives WEF World Economic Forum 3 Executive Summary Air transport is vital for the modern economy. It provides the city-pair connections that serve as virtual bridges supporting the flows of key economic activities between markets. As the only rapid global transportation network, it facilitates links between businesses, governments and people – enabling world trade, investment, tourism and travel among other key economic activities. While this report focuses on the important role that air connectivity plays in promoting global economic prosperity, we acknowledge and discuss the disruptive impact that the COVID-19 pandemic has had on air connectivity around the globe. We provide a snapshot of global and regional air connectivity before and during the pandemic, discussing the importance of restoring air connectivity to support economic recovery. In a way, the outbreak and spread of COVID-19 proved to be a natural experiment to examine the interplay between the levels of connectivity and key economic flows, such as tourism, trade and investment. Air connectivity enables cross-border trade Air connectivity facilitates world trade. It enables countries’ participation in the global economy by increasing access to international markets and facilitating globalisation of production and supply chains. Nearly 61 million tonnes of freight was carried by air in 2019. The total value of goods transported by air is $6.5 trillion, representing 35% of all international trade. Air connectivity supports tourism flows Aviation is indispensable for tourism, a major engine of economic growth, particularly in many emerging economies. Globally, 54% of international tourists travel by air. Aviation spurs innovation by facilitating the exchange of goods, services, knowledge and ideas. It widens markets and provides greater access to international capital, human resources and investment. Aviation’s global economic footprint (direct, indirect, induced and tourism catalytic benefits) is estimated at $3.5 trillion, contributing 4.1% to the global gross domestic product (GDP) and supporting 87.7 million jobs. Air connectivity enables cross-border investment and knowledge exchange Air connectivity enabled through regular and speedy air service unlocks a wide range of economic benefits. Therefore, improving air connectivity can generate a substantial boost to economic growth. Air connectivity contributes to improved economic productivity by encouraging investment and innovation, improving business operations and efficiency, and allowing companies to attract high-quality employees and share knowledge. Air connectivity is an important policy concept, which is becoming increasingly relevant in various international fora. Policy makers in the air transport sector need a rigorous measure to understand how air connectivity is evolving over time in order to compare the level of air connectivity across different cities, countries and regions. The IATA air connectivity measure captures important aspects of air connectivity – such as the economic importance of the destination city and onward connections to the rest of the global air transport network – while at the same time providing a simple and intuitive way to measure and report air connectivity. 4 The onset of the global pandemic has led to significant disruptions in air connectivity across all regions. According to the IATA connectivity measure, all regions sustained sharp declines in air connectivity levels relative to the previous year. Connectivity in some regions such as Asia
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