in Business & Finance

Air transport supports 490,000 jobs and contributes US$12bn in GDP for South Africa

Posted 21 June 2017 · Add Comment

The International Air Transport Association (IATA) has released new data showing that the air transport sector in South Africa provides immense value to the people and economy of the country supporting some 490,000 jobs including tourism-related employment and contributing US$12 billion or 3.5% to the country's GDP.

“The study confirms the vital role of air transport in facilitating over US$110 billion in exports, some US$140 billion in foreign direct investment and around US$9.2 billion in inbound leisure and business tourism for South Africa. With the country now in a recession it’s time to re-double efforts to promote South Africa as a destination for business, trade and tourism,” said Muhammad Ali Albakri, IATA’s Regional Vice President for the Middle East & Africa, who is making his first visit to Africa in his new capacity.

Infrastructure, Ease of Travel and Cost Competitiveness Are Vital:

According to executives surveyed by the World Economic Forum for the study, South Africa’s transport infrastructure quality score places the country 1st out of 37 African countries surveyedand 48th globally

South Africa ranks 19th out of 37 African countriesfor visa openness

It ranks 17th out of 37 for cost competitiveness in the air transport industry, based on air tickettaxes, airport charges and VAT 

Around 390,000 aircraft land and take off from one of South Africa’s main airports every year.  Johannesburg’s O.R. Tambo International Airport is the country’s busiest in terms of passengers with over 18.5 million travellers passing through the airport in 2014.

“Affordable, safe and reliable air transport is crucial to economic growth.  It promotes skills development and is a catalyst for jobs.  We urge the South African Government to remove any impediments, including unnecessary red-tape and policies that hinder air connectivity and the trade, investment, tourism and job opportunities it facilitates and stimulates,” added Albakri. 

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