New study reinforces Auckland Airport’s role as economic growth driver

Auckland Airport is expected to grow significantly faster than the regional and national economies over the next two decades – confirming its role as a key driver and facilitator of economic activity, according to a new study published today.

The study indicates that Auckland Airport, together with neighbouring business areas, will become increasingly important to Auckland’s economic development. Auckland Airport’s contribution to economic activity (both direct and facilitated) is expected to increase to as much as 27% of Auckland regional GDP by 2031, up from 21% in 2006 as estimated in an earlier study. This economic activity will help sustain as many as 363,000 jobs, an increase from 174,000 in 2006. While some of the economic activity occurs in and around the airport itself, the bulk is related to the flow-on benefits across the broader economy related to passengers and freight travelling through Auckland Airport.

At a national level, Auckland Airport is projected to contribute to as much as 19 per cent of New Zealand’s GDP by 2031 (13% in 2006), sustaining up to 756,000 jobs (319,000 in 2006). The largest share of this economic impact will be felt in the tourism sector, as Auckland Airport continues to grow its status as New Zealand’s main international gateway and principal aviation hub. Auckland Airport, which already ranks as New Zealand’s second largest port by value of freight movements, will also continue to grow its contribution to international trade,

The study, by consultancy Market Economics, also highlights the increasing importance as an economic growth node of the airport focused and supporting businesses located at or near Auckland Airport – within the Auckland Airport Business District (comprising land owned by Auckland Airport) or on neighbouring land. This growth node has been called the Airport Corridor.

The Airport Corridor already generates or facilitates around $3 billion of GDP annually and its contribution is expected to grow to $5-6 billion by 2031. This growth is expected to increase employment in the Airport Corridor from a current estimate of 21,000 workers to as many as 38,000 by 2031.

The study notes the correlation between jobs created in the Airport Corridor and growth in Auckland Airport’s traffic volumes – as the more vibrant the Airport becomes, the more companies want to locate close to it. Currently, there are about 1,800 jobs within the Airport Corridor for every million passengers passing through the Airport.

The Market Economics study concludes, “Auckland Airport facilitates substantial levels of business activity by enabling and supporting tourism and trade in Auckland and throughout New Zealand. As Auckland Airport (and the air transport sector generally) grows more rapidly than the economy as a whole, its role as a facilitator and generator of business activity is expected to steadily increase into the longer term. Within the Auckland spatial economy, the Airport Corridor will be a major focus of business activity, and a catalyst for economic growth across the region. Its significance as a driver of economic growth should not be under-estimated.”

Auckland Airport’s chief executive Simon Moutter said, “This study reinforces the important role that Auckland Airport plays in helping grow New Zealand tourism and trade by improving the air services connections between New Zealand and the world.

“We are already playing a significant role in air services development and we are determined to continue this effort to drive growth in the coming years. The more successful we are at encouraging new and existing airlines to fly here more frequently, the greater the flow-on economic benefits for New Zealand. Each international visitor, for instance, generates around $2,500 for New Zealand tourism.

“On a regional basis, it is important that Auckland Airport is seen not just as part of Auckland’s transport infrastructure, but a key driver of the supercity’s future economic prosperity and visitor economy.

“By commissioning this study, we hope to improve understanding about the strong growth potential of both Auckland Airport and the Airport Corridor. It is important that this growth is factored into planning decisions in areas such as land development, transport infrastructure and public transport services.”

A copy of the study can be downloaded at http://www.aucklandairport.co.nz/Corporate/NewsAndMedia/Publications.aspx

ENDS

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