Question

What are the impacts of the aviation industry on the economy of a country?

Answer 1

Aviation industry is regarded as a major contributor to the global economic prosperity of a country.The aviation industry has a substantial economic impact,both through its own activities and as a enabler of other industries.Its contribution includes direct,indirect and induced impacts which are mentioned below:

1.GENERATES EMPLOYMENT AND WEALTH

DIRECT IMPACTS

-This includes employment and activity within the air transport industry including airline and airport operations.The direct impact also includes the activities of the aerospace manufacturers selling aircraft and components to airline and related businesses.5 million direct jobs are generated in the aviation industry

INDIRECT IMPACT

-This includes employment and activities to suppliers to the air transport industry for e.g. jobs associated with aviation fuel,manufacture of goods sold in airport retail outlets etc.5.8 million indirect jobs are generated in the aviation industry

INDUCED IMPACT

-This include spending by those directly or indirectly employed in the air transport sector that supports in the air transport sector for e.g companies producing consumer goods and a range of service industries.2.7 million jobs are supported though aviation industry.

2.GENERATES WIDER CATALYTIC BENEFITS

-This includes ability to serve larger markets ,impact on business operations,influence on investment and impact on the labour market.

3.CONTRIBUTES TO WORLD TRADE

-It is a major contributor in the international trade.

4.STIMULATES TOURISM

-Aviation industry plays a major role in the tourism sector of a country.

5.SIGNIFICANT TAX PAYER

-Aviation industry plays a major role in contributing to public funds in the developed world and levying user charges and taxation hence in such a way it is a significant tax payer.