The International Air Transport Association (IATA) presented its latest study on the economic value of air transport and tourism in South Africa and identified opportunities for significant expansion over the next 20 years if key policy reforms are implemented. implemented.
In 2017, 20.9 million passengers traveled to and from South Africa, with aviation and tourism accounting for a gross value-added of $ 9.4 billion. It accounts for 3.2 percent of South Africa’s GDP and supports 472,000 jobs, according to the latest report released by IATA. The association emphasizes that over the next 20 years, the South African market could more than double in size, generating 23.8 million additional trips, more than 372,000 additional jobs and a total GDP of 20.2 billion. dollars by 2037. IATA has identified three areas in which government action can enable aviation to continue its growth trajectory and generate even more value in South Africa.
-Reform harmful immigration policies;
-Reduce taxes and fees that increase the cost of doing business in the country;
-To undertake a harmonized strategic approach to policy making with transportation and aviation at the heart of economic planning.
“The results of the study point out that robust air connectivity provides significant economic and social benefits. Air transport creates jobs, facilitates tourism, supports international trade, and drives economic activity. With more than 20.9 million passengers departing and arriving from South African airports every year, there is something to be proud of all that aviation has achieved here. However, while these figures are robust, we are concerned by the respective contractions in the transportation and tourism sectors in the first quarter of 2019 of 4.4% and 3.6%, reflecting uncertainties and a loss of confidence. Government policy reforms to promote business, trade, investment and tourism are essential to make the most of air travel for the benefit of the South African population and economy, “said Alexandre de Juniac , Chief Executive Officer and CEO of IATA.
Recent continental developments are also promising for South Africa. “The implementation of the Continental Free Trade Area and the accompanying African Single Aviation Market is an initiative that will benefit South Africa and other countries with pro-trade policies and legal frameworks.” and trade, “added Juniac.
Source : IATA
Keywords : South Africa, News, Economy, Aviation, Tourism, IATA
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