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Cape Town - The aviation industry contributes 2.1% to the
South African gross domestic product (GDP), which is about R51bn a year, a
study commissioned by the International Air transport association (IATA) has
found.
The report done by Oxford Economics, a think tank, looked at the impact of
aviation on countries' economies and found that aviation provides livelihoods
for 227 000 South Africans. The average aviation employee generates R21 000 in
gross value added - making them more than four times as productive as the
average South African job.
The study looked at 54 countries.
Tony Tyler, IATA's Director General and CEO, attended the
AGM of the Airlines Association of South Africa on Friday where the report was
unveiled.
Tyler said the report found that tourism enabled by aviation
generates a further R21bn in economic activity and 116 000 jobs in South
Africa.
"Aviation makes a substantial contribution to government coffers - paying R6bn in tax, including R2.4bn in VAT and departure taxes per year. Last year 21 million people and 240 000 tonnes of freight travelled to/from and within South Africa."
Tyler said decision makers need to understand that aviation
is a critical strategic component of the South African economy.
"The connectivity of a strong air transport sector was certainly a supporting factor in South Africa joining the Brics grouping."
Tyler said he hopes the government will use the report to
support better policy decisions based on solid facts.
"For example, we all know that global connectivity opens up
new markets, offers the possibility to improve supply chain efficiency and
generates employment. Our study estimates that a 10% improvement in
connectivity generates a R1.5bn per year increase in long-term GDP for the
South African economy. That is a hard fact for politicians to ignore when they
slap on a new tax or fail to take a long-term view on developing efficient
infrastructure."
Tyler said the aviation industry can use all the support that it can get.
"The industry is fragile. Global GDP growth slumped from
3.9% last year to 2.5% this year. And we expect 2.4% in 2012. Historically, the
airline industry falls into losses when GDP growth dips below 2.0%."
Tyler also commented on safety.
"Safety is our top priority and Africa's biggest challenge. The global industry has one accident for every 1.6 million flights whilst IATA members have one hull loss for every 4 million flights. In Africa accidents happen every 135 000 flights. The continent's safety record is 12 times worse than the global average."
Tyler says 60% of African accidents between 2008 and 2010 were
on runways.
