The International Air Transport Association’s (IATA) latest study on the importance of air transport and tourism to Ethiopia revealed that the sustained prioritization of air transport, connectivity and tourism as a strategic asset would support an additional 900,000 jobs and at least $9.3 billion of GDP by 2037.
IATA’s economic report, which was presented in Addis Ababa today, identified air transport and tourism as significant economic enablers. Air transport and foreign tourists arriving by air currently support 5.7 percent of the nation’s GDP valued at $4.2 billion and about 1.1 million jobs.
If current trends persist, Ethiopia’s air transport market will expand by 226 percent over the next 20 years, with annual passenger journeys increasing from 7.2 million in 2017 to 23.5 million a year by 2037.
IATA identified four areas where Ethiopian government action can further promote aviation’s growth and bring even more value to the country: implementing the Single African Air Transport Market (SAATM), ensuring future infrastructure investments to maximize the economic and social benefits of connectivity, repatriation of blocked funds, and improving air cargo facilitation.
"The Ethiopian Government’s recognition of air transport as a key driver of the country’s economic growth has paid significant dividends. Economic, political and regulatory reforms, aimed at energizing and transforming the economy from a state-led to market-based growth, with stimulants such as the recently-introduced “Visa on Arrival” process, are bolstering Ethiopia’s importance as a major East African air transport hub,” said Raphael Kuuchi, IATA’s Special Envoy to Africa on Aeropolitical Affairs.
“Ethiopia’s continued prioritization of air transport along with the four government interventions IATA is proposing, will help the country’s air transport and tourism market achieve the 226 percent forecast growth and in doing so, unlock even greater socio-economic opportunities for the country,” added Kuuchi.
Source: IATA Report on Importance of Air Transport to Ethiopia
