{"id":243883,"date":"2024-10-29T05:15:00","date_gmt":"2024-10-28T22:15:00","guid":{"rendered":"https:\/\/www.ttrweekly.com\/site\/?p=243883"},"modified":"2024-10-29T05:58:54","modified_gmt":"2024-10-28T22:58:54","slug":"aviation-makes-a-mega-impact-on-dubais-economy","status":"publish","type":"post","link":"https:\/\/www.ttrweekly.com\/site\/2024\/10\/aviation-makes-a-mega-impact-on-dubais-economy\/","title":{"rendered":"Aviation makes a mega impact on Dubai\u2019s economy"},"content":{"rendered":"\n

DUBAI, UAE, 29 October 2024: Emirates Group and Dubai Airports released an economic impact study last week that reaffirms the central role aviation plays in Dubai\u2019s economy by quantifying its contributions and forecasting the sector\u2019s upward trajectory based on financial and passenger growth projections for the sector.<\/p>\n\n\n

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The study, compiled by global research firm Oxford Economics, includes an assessment of direct economic activity generated by the aviation sector, indirect activity generated through the sector\u2019s supply chain, and induced activity supported through wage-funded consumption by the local aviation workforce. The study also assesses the catalytic impact of tourism spending facilitated by the aviation sector in Dubai.<\/p>\n\n\n\n

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline & Group, and Chairman of Dubai Airports said: \u201cUnder the leadership of HH Sheikh Mohammed bin Rashid Al Maktoum, Dubai\u2019s aviation sector has been a core pillar of our city\u2019s economic growth strategy to date, and it will continue to play a key role in the D33 Economic Agenda.<\/p>\n\n\n\n

\u201cSupported by strong air connectivity, Dubai has a prominent presence on the global stage for trade, investments, and tourism and is a leading player in aviation and logistics. Our ambitious plans for Dubai World Central \u2013 Al Maktoum International airport, and our ongoing investments to expand capacity at Dubai International will unlock further economic opportunities by supporting the projected demand for air transport. Our growth plans will generate even more skilled jobs, and also help drive innovation as we work with leading technology partners to develop future solutions to enhance travel experiences and make operations more efficient and secure.\u201d  <\/p>\n\n\n\n

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Aviation sector\u2019s contribution to Dubai’s economy<\/strong><\/p>\n\n\n\n

In 2023, Dubai\u2019s aviation sector, consisting of Emirates Group, Dubai Airports (including Dubai International and Dubai World Central – Al Maktoum airports), and other aviation sector entities (1)<\/em> are estimated to have supported AED137 billion (USD37.3 billion) in gross value added (2)<\/em> (GVA), equivalent to 27% of Dubai’s GDP. This included the core economic impact of AED94 billion and AED 43 billion from the catalytic impact of aviation-facilitated tourism. These figures are projected to increase steadily, with aviation activities facilitated by Emirates and Dubai Airports contributing AED196 billion, or 32% of Dubai’s forecasted GDP by 2030 (2023 prices).<\/p>\n\n\n\n

Aviation-led activity also accounted for 631,000 jobs across Dubai, equivalent to one in five jobs in the emirate in 2023. A further 185,000 aviation-linked jobs are expected to be created by 2030, with the total number of jobs supported by Dubai\u2019s aviation sector forecast to grow to 816,000 jobs.<\/p>\n\n\n\n

A previous economic impact report released by Oxford Economics in 2014<\/a> found that the aviation sector contributed to 27% of Dubai\u2019s GDP and supported 417,000 jobs. While the latest results indicate the share of Dubai\u2019s GDP has remained stable, the sector\u2019s gross value added has increased in real terms, with the current figures reflecting faster growth across other sectors, as well as diversification in the wider economy over the past decade.<\/p>\n\n\n\n

Dubai\u2019s vital investment to futureproof its aviation sector and ensure it remains an economic driver is evident in ongoing major investments to expand capacity and operations at Dubai International, in addition to a new generation facility at Dubai World Central – Al Maktoum International. The new AED128 billion airport will be five times the size of Dubai International, with the first phase to be completed in 10 years. When fully completed, Dubai World Central – Al Maktoum International will consist of over 400 aircraft stands, with the capacity to serve 260 million passengers annually. The expansion of Dubai World Central – Al Maktoum International is not included in the study\u2019s main impact results (3)<\/em>; however, the construction project is expected to contribute an estimated AED 6.1 billion to Dubai\u2019s GDP in 2030, as well as support 132,000 jobs.<\/p>\n\n\n\n

The new airport and surrounding infrastructure will contribute to Dubai\u2019s Economic Agenda (D33), which aims to strengthen the emirate\u2019s trade and tourism footprint. D33\u2019s progressive development plans also seek to make Dubai one of the most connected cities by adding 400 destinations to its foreign trade map, in addition to making it one of the top five logistics hubs in the world.<\/p>\n\n\n\n

Aviation and tourism in Dubai<\/strong><\/p>\n\n\n\n

Aviation is also the driving force behind the growth of international tourism to Dubai. As one of the most frequented destinations in the world, visitors stayed an average of 3.8 nights in 2023 (4)<\/em>, spending an average of AED 4,300 (4)<\/em> on hotels, restaurants, attractions and shopping. According to the report, international visitors flying to Dubai spent an estimated AED 66 billion last year.<\/p>\n\n\n\n

In total, aviation-facilitated tourism spending is estimated to have contributed AED 43 billion in gross value added, or 8.5% of Dubai\u2019s GDP, supporting 329,000 jobs. More than half of GVA, AED 23 billion, was generated by those flying to Dubai with Emirates. Tourism to Dubai is projected to grow significantly over the next six years, with aviation-facilitated tourism spending expected to support AED 63 billion in gross value added, equivalent to 10% of Dubai\u2019s projected GDP, and one in eight Dubai jobs.<\/p>\n\n\n\n

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