Sweden s aviation sector its impact on the Swedish economy in A study conducted with the cooperation of IATA
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1 Sweden s aviation sector its impact on the Swedish economy in 29 A study conducted with the cooperation of IATA 24/1/211
2 The Swedish aviation sector - In 29, airlines registered in Sweden carried to from or within Sweden - 8 million passengers, and 47, tonnes of freight Swedish airports in 29 handled around - 31 million passengers: 26 million by 5 largest airports 14, tonnes of freight In addition to airport operators, our economic impacts cover services provided for passengers on-site (e.g. retail & catering), air navigation and air regulation. Aerospace manufacturing Firms that manufacture and maintain aircraft systems, airframes and engines
3 Aviation s economic footprint
4 Aviation s economic footprint - channels Headcount ' Direct Indirect Induced Tourism SEK billion Jobs GDP
5 Aviation s economic footprint - channels Headcount ' Direct Indirect Induced Tourism SEK billion Jobs GDP
6 Aviation s economic footprint - channels Headcount ' Direct Indirect Induced Tourism SEK billion Jobs GDP
7 Industry s footprint Headcount ' Direct Indirect Induced Tourism SEK billion Jobs GDP
8 Aviation s economic footprint - Sectors
9 Wider benefits The economic benefits extend beyond the economic footprint Customer benefits Productivity Enabling long-term growth
10 Customer benefits - passengers Flights flying to from and within Sweden carry: 25 million passengers & 141, tonnes of freight (29) For these services customers pay (inclusive of tax) SEK 78. billion the expenditure by passengers SEK 3.1 billion expenditure by freight shippers These expenditures are likely to significantly understate the value actually attach to the flights. Calculations by Oxford Economics suggest the value of the benefits in excess of their expenditure, are worth SEK 36.2 billion for passengers. SEK 1.3 billion for freight shippers
11 Productivity SEK/head 1,2, 1,, 8, 6, 4, 2, Airlines,airports (airside) Whole economy Source : Oxford Economics, IATA, national accounts SEK/head 8, 78, 76, 74, 72, 7, 68, 66, Aerospace Manufacturing Source : Oxford Economics, IATA, national accounts Productivity in airlines and ground infrastructure (air side) is SEK 1,133,775, almost twice as high as the average for the economy as a whole. Aerospace productivity is SEK 793,272, over 11% higher than that for the manufacturing sector as a whole.
12 Connectivity 89, scheduled international flights, destined for 137 airports in 45 countries. 1 routes connecting major airports in Sweden to urban agglomerations around the world (21). 17 of these routes connect to cities of more than 1 million inhabitants.
13 Enabling long-term economic growth Aviation is a essential infrastructure asset that is essential to the longterm economic growth. Economic growth is facilitated by: Lowering transport costs, particularly over long distances, helping to increase competition because suppliers can service a wider area and potentially reduce average costs, through increased economies of scale Increasing the flexibility of labour supply Encouraging Swedish businesses to invest and specialise in areas that play to the economy s strengths Speeding the adoption of new business practices, such as just-in-timeinventory management that relies on quick and reliable delivery of essential supplies Oxford economics estimates that a 1% improvement in connectivity relative to GDP would see a SEK 2. billion per annum increase in longrun GDP for the Swedish economy
14 Air connectivity country comparison Air connectivity per SEK billion of GDP, 29 Impact on GDP from a 1% increase Sweden 1.5 SEK 2. billion (.7%) UAE Hong Kong Singapore Jordan Mauritius NewZealand Ireland Lebanon Switzerland US Malaysia Australia Portugal Thailand Spain Kenya Canada Denmark Philippines Vietnam Morocco Greece Norway UK Indonesia Netherlands Italy Japan Taiwan Austria Germany China France Sweden Belgium Brazil Saudi Arabia South Africa Luxembourg South Korea Turkey Egypt Chile Mexico Colombia India Argentina Nigeria Poland Venezuela Russia Connectivity per SEK billion of GDP (PPP), 29
15 Summary The study has also shown what a critical asset Sweden s air transport network is, to business and the wider economy. Contribution to Swedish GDP The aviation sector contributes SEK 52.8 billion (1.7%) to Swedish GDP. In addition there are SEK 67.7 billion in benefits through tourism. Major employer The aviation sector supports 83, jobs in Sweden. In addition there are a further 12, people employed through the tourism. Wider benefits Passengers and freight shippers receive net benefits of around SEK 36.2 billion, and SEK 1.3 billion respectively. Productivity in airlines and ground infrastructure (air side) is SEK 1,133,775, almost twice as high as the average for the economy as a whole Enabling long-run growth - a 1% improvement in connectivity relative to GDP would see a SEK 2. billion per annum increase in long-run GDP for the Swedish economy
16
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