By Ed Attwood
Dubai-based carrier boosting major economies due to higher connectivity, tourism benefits
Emirates Airline is not only posting hefty profits at home, it is also boosting the global economy by billions due to added tourism and connectivity, according to a new report.
Data from Oxford Economics shows the impact of the Dubai-based carrier’s operations on ten different countries by calculating the various benefits to their individual economies.
For instance, Emirates operations to Mauritius account for as much as 1 percent of GDP through tourism, the report says.
Elsewhere, the airline adds $1.2bn to the Indian economy through tourism, and $1.3bn to Australia.
The report states that individual economies also benefit from the greater “connectivity” that Emirates provides.
“Opening domestic markets to foreign competitors can also be an important driver behind reducing unit production costs, either by forcing domestic firms to adopt best international practices in production and management methods or by encouraging innovation,” the report says.
“These competitive pressures improve productivity of firms throughout the economy: a process given further impetus through the free movement of investment capital and workers between countries.”
Extra connectivity provided by Emirates added an extra $1.4bn to the Chinese economy, as well as $800m each to the British and US economies, the data claimed.
In addition, Germany – where Emirates is currently seeking further landing rights – has apparently seen an extra $500m added to its GDP via “consumer benefits”.
Commissioned by Emirates and Dubai Airports, the report comes at a time when the Dubai carrier is aggressively expanding its network amid protests from other airlines and some governments that the airline is anti-competitive.
Extra landing rights have been rejected by Canada, and Emirates is facing extensive lobbying against its plans to add capacity to destinations in Germany and Austria.
“I’m sure this will make a lot of people unhappy, but the market is there to grow,” HH Sheikh Ahmed Bin Saeed Al Maktoum, Emirates chairman and CEO, said as the airline posted 2010-11 full-year profits of $1.5bn in May.
“Airlines in Europe don’t want to see us there because we are giving them competition. But we get good market share because of the product. We have big plans.”
The report also stated that the aviation sector is expected to contribute 32 percent of Dubai’s GDP by 2020, and support about 22 percent of the emirate’s jobs, either directly or indirectly.
The industry currently contributes $22.1bn to the local economy (28 percent of GDP), supporting 259,000 jobs (19 percent of total employment).
oh well...this seems to be a 'sponsored' survey ;)
Very "transparent" report in terms of its motive. good work
"Commissioned by Emirates and Dubai Airports" - not in the slightest bit biased then