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  • 37.5% to its GDP and will support over 750,000 jobs by 2020

    Latest Oxford Economics Report examines continued impact of aviation sector on Dubai’s economy and projects continued growth beyond 2020 

    Emirates airline, Dubai Airports and the aviation sector as a whole contributed $26.7 billion to the Dubai economy in 2013, which was almost 27% of Dubai’s GDP and supported a total of 416,500 jobs accounting for 21% of the emirates’ total employment. These figures were based on the latest report “Quantifying the Economic Impact of Aviation in Dubai” conducted by global research firm, Oxford Economics, as a follow-up to a 2011 study done by the same firm.

    The objective of the report was to quantify the economic impact of the aviation sector and its subsequent Dubai-based supply chain. In addition, the report explains the benefits that aviation brought to Dubai’s economy in 2013 in terms of gross value added (GVA)** and employment, and provides forecasts for the sector and its knock-on effects in 2020 and 2030.

    The report re-affirms aviation’s growing significance as a major engine of economic development, and its far-reaching contributions to other industries as a catalyst for a spectrum of economic activity.

    “Dubai’s success stems from a clear vision, careful planning, and collaborative execution. It is no accident that we are a global aviation hub today. It has taken us years to build up the critical competencies and infrastructure that we have today, and we now have a solid base on which to further develop. We will continue to take a consensus-based approach to infrastructure investment, embrace open competition, and focus on opening up and connecting markets through efficient operations. At the end, we want Dubai to be the top choice for international travellers and traders - as a destination, and as a transport hub,” said HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, Chairman of Dubai Airports and President of the Dubai Civil Aviation Authority.

    Core impact of aviation: It is estimated that the aviation sector, including the Emirates Group, Dubai Airports, and other aviation businesses such as airlines flying into Dubai, regulatory authorities and Dubai Duty Free, had a core impact of US$16.5 billion GVA in 2013. This includes direct, indirect and induced contributions and is equal to 16.5% of Dubai’s GDP, supporting over 259,000 Dubai based jobs.

    Moreover, for every $100 of activity in the aviation sector, a further $72 is added in other sectors of the local economy from supply chain connections and expenditures. For every 100 jobs created in aviation, an additional 116 jobs are created elsewhere in Dubai.

    Tourism benefits: Aviation has proved to be an indispensable catalyst for the growth of Dubai’s tourism industry. Tourism and travel activities in 2013 had an economic impact of $10.2 billion GVA supporting a further 157,100 jobs. In 2013, Dubai welcomed nearly 10 million non-UAE visitors who spent $13 billion, accounting for around 1% of foreign visitor spend globally that year. The success of Dubai as a destination has been a public and private effort to invest in world-class aviation and tourism infrastructure to support the influx of visitors. The results have paid dividends and Dubai currently captures a 0.4% share of the world’s business and tourism traffic, double the share it had in 2000.

    Connectivity: One of Dubai’s greatest assets is its enhanced connectivity. In 2013, Oxford estimated that passengers could connect from Dubai to 25 cities (or 81% of world cities) with populations of over 10 million people. Overall, Dubai had direct passenger flight connections to 149 cities with populations of over 1 million people, creating potential export markets of over 916 million people, or 13% of the world’s population. Cargo tonnage between 1990-2013 handled in Dubai has grown on average of 13.5% per year, compared to global average trade volumes of 5.6% per year.

    The passenger and cargo connectivity provided from Dubai has positively impacted Foreign Direct Investment (FDI) and trade. It also has provided greater access to foreign markets, encouraging exports, and increasing competition in the local economy, benefiting consumers.

    Economic benefits in 2020 and 2030

    Between 2014 and 2020, the contribution of the aviation sector to Dubai’s economy is expected to grow at a faster rate than the economy as a whole, on the back of strong growth in international passenger traffic and cargo. The sector’s airline and airport capacity continues to expand to accommodate for growing demand.

    Using industry growth forecasts and modelling projections based on current expansion plans for Dubai International (DXB) and Al Maktoum International at Dubai World Central (DWC), it is estimated that the overall economic impact of both aviation and tourism related activities will rise to a robust $53.1 billion in 2020. This will be equivalent to 37.5% of Dubai’s GDP, supporting over 754,500 Dubai-based jobs.

    By 2020, it is estimated that Emirates will fly 70 million passengers, and the airline and its partners are already progressing plans for the right infrastructure to be in place to support and capitalise on passenger growth. The same year, Dubai expects to welcome over 20 million visitors for Expo 2020. Projects to support the six month mega-event in Dubai are already underway. This includes a sizable increase in airport capacity which encompasses expansion of airspace, airfield, stands and terminal areas to allow Dubai International to accommodate 60% more aircraft stands by 2015, and service 90 million passengers by 2018. By 2020, Dubai International is estimated to receive 126.5 million passengers, almost 30% higher than its original 2010 assessments.

    Looking further ahead, the total economic impact of aviation by 2030 is projected to grow to $88.1 billion and will support 1,194,700 jobs.

    A summary of the report and the full Oxford Economics report, “Quantifying the Economic Impact of Aviation in Dubai,” can be found at:

    *The Oxford Economics Report only quantifies the direct, indirect, induced and tourism benefits, and do not attempt to put a value on ‘connectivity benefits’ as in the 2011 report Explaining Dubai’s Aviation Model. For comparison, the direct, indirect, induced and tourism benefits in the 2011 report totalled US$19.6 billion, or 24% of GDP.

    **Gross Value Added (GVA) is defined as the contribution an institution, company or industry makes to Gross Domestic Product (GDP). The sum of GVA contributions of all Dubai organizations is equal to Dubai GDP. In simple terms GVA is understood as turnover minus the cost of bought-in goods and services used in the production process.

  • Resource efficiency, conservation, and new technologies are the focus of a new international partnership on sustainable tourism

    A new international programme that aims to catalyze a shift to more sustainable tourism over the next decade was launched at the World Travel Market in London this week.

    The Sustainable Tourism Programme of the Ten-Year Framework of Programmes on Sustainable Consumption and Production Patterns (10YFP) will be led by the World Tourism Organization (UNWTO) of the United Nations and the Governments of France, the Kingdom of Morocco and the Republic of Korea, with the support of United Nations Environment Programme (UNEP), which hosts the 10YFP Secretariat.

    Tourism is today one of the largest and fastest-growing economic sectors in the world. It contributes 9 per cent to global GDP, accounts for one in 11 jobs worldwide, and for 6 per cent of global exports. By 2030, UNWTO forecasts that there will be 1.8 billion international tourism arrivals annually.

    If not sustainably managed however, tourism can deplete natural resources leading to water shortages, loss of biodiversity, land degradation and contribute to climate change and pollution, among other impacts. Tourism’s contribution to global warming is estimated at 5 per cent of global CO2 emissions.

    UNEP’s 2011 Green Economy Report reveals that under a ‘business-as-usual’ scenario, projected tourism growth rates to 2050 will result in increases in energy consumption by 154 per cent, greenhouse gas emissions by 131 per cent, water consumption by 152 per cent, and solid waste disposal by 251 per cent.

    “As tourism continues to grow, so too will the pressures on the environment and wildlife. Without proper management and protection, as well as investments in greening the sector, ecosystems and thousands of magnificent species will suffer,” said UN Under-Secretary-General and UNEP Executive Director Achim Steiner.

    "Tourism has been identified by UNEP as one of the ten economic sectors best able to contribute to the transition to a sustainable and inclusive green economy. This important initiative is about steering the industry onto a truly sustainable path -- one that echoes to the challenge of our time: namely the fostering of a global Green Economy that thrives on the interest, rather than the capital, of our economically important nature-based assets." he added.

    UNWTO Secretary-General Taleb Rifai said, “As the leading organization for tourism, the World Tourism Organization seeks to maximize tourism’s contribution to development while minimizing its negative impacts. UNWTO is pleased to be at the helm of such an important initiative and to be collaborating with governments and institutions to implement the 10YFP Sustainable Tourism Programme.”

    For example, in the Galapagos Islands and Palau, visitors pay an entry tax to protected areas, which are sometimes referred to as ‘green fees’. The revenues generated from these fees - which in Palau’s case is US$1.3 million annually since 2009 - are used to support conservation and sustainable human development.

    The Organisation for Economic Co-operation and Development’s (OECD) Tourism Trends and Policies 2012, reports that, as the importance of the tourism sector continues to grow in OECD countries, the greatest challenge to achieving sustainable tourism is horizontal and vertical policy coordination.

    Addressing these challenges is the mandate of the 10YFP Sustainable Tourism Programme as it strives to achieve major shifts in tourism policies and stimulate greater sustainability within the tourism supply chain. A collaborative initiative, the programme aims to improve resource efficiency, management effectiveness, and the use of new technologies to promote sustainable consumption and production patterns in this key sector.

    As the most visited tourism destination in the world, France highly values the preservation of its rich culture and natural heritage. This is fundamental to maintain the quality of a destination which receives 85 million tourists a year.

    Building on its support to sustainable tourism, as former Chair of the International Task Force on Sustainable Tourism Development, and former Chair of the Global Partnership for Sustainable Tourism, France will pursue its commitment by co-leading this programme. France’s experience in this regard will be of benefit to the 10YFP and partners in this important programme.

    Dr Lahcen Haddad, Minister of Tourism for the Kingdom of Morocco, emphasises that the aim of Morocco’s new Vision 2020 is to make the country one of the world’s top 20 tourism destinations, making it a model of sustainable tourism development in the Mediterranean.

    “This ambitious strategy aims to capitalize on and preserve our natural and cultural advantages so that their exploitation yields the most sustainable social and economic benefits for all stakeholders,” said Minister Haddad.

    “By taking this proactive role, Morocco seeks to establish itself as a leading sustainable tourism destination in the Mediterranean. Morocco is committed to the 10YFP and has been since our active participation in the work of the International Task Force and its successor, the ‘Global Partnership for Sustainable Tourism”.

    Morocco served as the Chair of this Partnership since 2013 and is delighted to be a co-lead of the 10YFP Sustainable Tourism Programme.”

    Ms. Hyeri Han, Deputy Director of the International Tourism Division of Korea’s Ministry of Culture, Sports and Tourism, one of the Programme’s co-Leads said, “The Government of the Republic of Korea already integrates principles of sustainability into its tourism policies and is accelerating programme implementation nationally, with the intention of offering best practices and lessons learned on sustainable tourism.”

    Korea has been committed to the promotion of global sustainable tourism and actively supported the process of the inclusion of ‘sustainable tourism’ in the Rio+20 outcome document.


Ashwani Lohani assumes charge as Commissioner & Managing Director of Madhya Pradesh Tourism

Mr. Ashwani Lohani has took charge of his new assignment as Commissioner & Managing Director of Madhya Pradesh Tourism. He had earlier also served as Managing Director of MPSTDC  ( June 2006 to December 2009 ) and during  this period Madhya Pradesh Tourism bagged the National Tourism Award for ‘Best Tourism Performing State in the Country’ in 2008. Prior to this he was working as the Chief Administrative Officer of the Indian Railway Organisation for Alternate Fuels s ...

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Air Transport and Tourism to Grow Together

The 2013 UNWTO and WTM Ministers´ Summit at the World Travel Market (WTM) will put a spotlight on the essential connection between air transport and tourism, debating the challenges and opportunities of promoting higher policy coordination between aviation and tourism. Air transport, being an important factor in outbound or inbound tourism, plays a vital role in foreign tourist arrival in India. Therefore, the discussions on the matter must be considered as important for the tourism i ... ?>...

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