Airport facilitates $19 bn for NZ, 283,000 jobs

Auckland Airport facilitates $19 billion for the New Zealand economy and sustains 283,000 jobs

Auckland International Airport Limited (AIAL) has released an updated economic impact report that shows that the airport facilitates a contribution of approximately $19 billion to the New Zealand economy annually, an increase of 34 per cent since 2000. The airport directly or indirectly sustains employment equivalent to 283,000 full time workers annually. This equates to 13.7 per cent of national gross domestic product (GDP) and 15.4 per cent of national employment.

Commissioned by AIAL and undertaken by Market Economics Limited, the study involved a comprehensive review of data provided by Statistics New Zealand and the Ministry of Tourism’s Domestic Tourist Survey and International Visitor Survey. AIAL also provided data on passenger, freight and aircraft movements to the year ending June 2006. A previous study was completed in 2000.

Over 70 per cent of international visitors arrive or depart via Auckland Airport and over 12 million in total pass through the airport each year.

“This updated information confirms the importance of Auckland Airport to New Zealand’s economy and growth prospects,” says chief executive officer Don Huse.

“The airport also plays a significant role in the Auckland economy, generating and facilitating some $10.7 billion worth of value added and sustaining 153,900 jobs or 25.2 percent of the Auckland region’s employment,” says Huse.

“Auckland Airport is essential infrastructure that generates wide ranging social and economic benefits to the Auckland region and nationally. The airport generates returns to a wide group of stakeholders including the wider business sector and society in general.”

Nationally the largest impacts can be attributed to the tourism sector. The movements of people both internationally and domestically through Auckland Airport enables the generation of $9.7 billion of GDP, up from $6.0 billion in 2000. This large jump reflects the increasing role tourism plays in the national economy and the Airport’s vital role in facilitating tourist flows.

International visitors moving through Auckland Airport directly spent $4.9 billion in the national economy, generating $6.21 billion worth of GDP. Domestic travellers directly spent $438 million in the national economy, generating $563 million worth of GDP.

Freight related contributions to GDP have risen from $7.6 billion in 2000, to over $9.1 billion in 2006 (a 20 per cent increase in nominal terms).

The total airport related impact of $19 billion in 2006 represents a nominal 34 per cent increase since 2000. The employment impact over the same period increased by 20 per cent or 283,000 FTEs.

As a proportion of national GDP, the economic contribution of the airport remains similar to 2000 at 13.7 per cent of value and 15.4 per cent of employment.

The release of information regarding Auckland Airport’s economic impact follows recently published tourism figures from Statistics New Zealand. According to these figures international tourism expenditure accounted for $8.3 billion, or 19.2 per cent of New Zealand's exports in 2006, compared with 18.9 per cent for the previous year. These figures confirm tourism's place as New Zealand's number one export earner.

A more detailed analysis and description of the methodologies employed along with detailed results of the analysis can be found in an electronic copy at the Auckland Airport website www.auckland-airport.co.nz.

About Market Economics

Market Economics Ltd is an Auckland based company that has assisted government, business and industry at all levels to understand the impacts of development, major events and social and economic policy changes on the economy, society and environment. For more information visit www.marketeconomics.co.nz

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