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‚Äôs economy and projects continued growth beyond
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‚Äôs GDP and supported a total of 416,500 jobs accounting for
21% of the emirates‚Äô total employment. These figures were based on the latest
report ‚ÄúQuantifying the Economic Impact of Aviation in Dubai‚ÄĚ 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‚Äôs
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‚Äôs 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.
‚ÄúDubai‚Äôs 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,‚ÄĚ 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‚Äôs 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‚Äôs 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‚Äôs business and
tourism traffic, double the share it had in 2000.
Connectivity: One of Dubai‚Äôs 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‚Äôs 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‚Äôs 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‚Äôs 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‚Äôs 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, ‚ÄúQuantifying the Economic Impact of Aviation in Dubai,‚ÄĚ can be found
*The Oxford Economics Report only quantifies the direct,
indirect, induced and tourism benefits, and do not attempt to put a value on
‚Äėconnectivity benefits‚Äô as in the 2011 report Explaining Dubai‚Äôs 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
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
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‚Äôs contribution to global warming is estimated at 5 per cent of
global CO2 emissions.
UNEP‚Äôs 2011 Green Economy Report reveals that under a
‚Äėbusiness-as-usual‚Äô 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.
‚ÄúAs 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,‚ÄĚ 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, ‚ÄúAs the leading
organization for tourism, the World Tourism Organization seeks to maximize
tourism‚Äôs 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
For example, in the Galapagos Islands and Palau, visitors
pay an entry tax to protected areas, which are sometimes referred to as ‚Äėgreen
fees‚Äô. The revenues generated from these fees - which in Palau‚Äôs case is US$1.3
million annually since 2009 - are used to support conservation and sustainable
The Organisation for Economic Co-operation and Development‚Äôs
(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‚Äôs experience in this
regard will be of benefit to the 10YFP and partners in this important
Dr Lahcen Haddad, Minister of Tourism for the Kingdom of
Morocco, emphasises that the aim of Morocco‚Äôs new Vision 2020 is to make the
country one of the world‚Äôs top 20 tourism destinations, making it a model of
sustainable tourism development in the Mediterranean.
‚ÄúThis 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,‚ÄĚ said Minister
‚ÄúBy 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 ‚ÄėGlobal
Partnership for Sustainable Tourism‚ÄĚ.
Morocco served as the Chair of this Partnership since 2013
and is delighted to be a co-lead of the 10YFP Sustainable Tourism Programme.‚ÄĚ
Ms. Hyeri Han, Deputy Director of the International Tourism
Division of Korea‚Äôs Ministry of Culture, Sports and Tourism, one of the
Programme‚Äôs co-Leads said, ‚ÄúThe 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.‚ÄĚ
Korea has been committed to the promotion of global
sustainable tourism and actively supported the process of the inclusion of
‚Äėsustainable tourism‚Äô in the Rio+20 outcome document.
In an effort to ease travel planning for holidaymakers,
Kerala Tourism today introduced an innovative tool, a Quick Response (QR) Code
Aided Tourism Search, which makes it easier for travellers to find destinations
and information on the department‚Äôs official website.
Mr. A P Anil Kumar, Minister for Tourism, Kerala while
launching the QR Code in Trivandrum, said it‚Äôs the first such facility of its
kind in India. ‚ÄúThis technology will enable visitors to Kerala to overcome
The 2013 UNWTO and WTM Ministers¬ī
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
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 ...
Thomas Cook India partners with Corporation Bank to expand
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Thomas Cook (India) Ltd., India‚Äôs leading integrated travel
and travel related financial services company, announced an agreement with Corporation Bank, one of India‚Äôs largest
public sector bank, to distribute its
unique multi currency Borderless Prepaid Card via the Bank‚Äôs foreign exchange
Marketers Take Flight with New Travel Audience Targeting Solution from Wego.comTravel search site taps Lotame DMP to power data-driven
Wego, the leading travel metasearch site in the Asia Pacific
and Middle East, announced an additional refinement to their ad targeting
solution for marketers, powered by a partnership with Lotame, the leading Data
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Magic Planet to host first-of-its-kind exhibit
A caveman points his finger at the sky as a bolt of
lightning streaks down while his ‚Äėsorcery‚Äô, aided by a good knowledge of
weather patterns, awes the people gathered around - it is a diorama
representing one of the earliest known instances of misdirection and illusion
that has developed over the ages into the fine art of magic.
At Magic Planet, the world‚Äôs first magic-themed edutain ...
ATM roadshow arrives in Riyadh as Saudi tourism companies
finalise their marketing plans ahead of region‚Äôs largest travel and tourism
event in Dubai
The annual Arabian Travel Market (ATM) roadshow arrives in
Riyadh on Tuesday 18 February to deliver
a presentation at the offices of the Saudi Commission for Tourism &
Antiquities, to Saudi participants at this year‚Äôs exhibition.
Executives from Reed Travel Exhibitions the or ...
Ms. Nittaya Lokesh has recently been appointed the Director
of Spa and Fitness at The Ritz-Carlton Spa Bangalore. In this position, she
will manage and lead the operational, strategic and financial performance of
the 17,000 square-foot spa located on Level 5 of the hotel.
Ms. Lokesh has over 14 years of experience in the spa and
hospitality industry and has worked in India and Thailand. A Certified Spa
Manager by the Ministry of Public Health - Thailand, she was associated with
global c ...
Etihad Guest, the loyalty scheme of Etihad Airways is making
travel more convenient by introducing a new payment feature onto its membership
card. Walletplus, powered by Visa, allows members to load travel money onto
their Etihad Guest card and convert it to 11 different foreign currencies to
spend whenever they are travelling abroad.
The membership card can be loaded in advance, enabling card
holders to better manage their travel budgets ...
Kerala is probably one of the greenest places you will ever see; it is one of the 10 paradises in the world. Kerala is a land of natural beauty. Kerala offers a plethora of options for the travellers, it is a country blessed with world famous beaches, health resorts, Ayurveda treatments like body massage, yoga and meditation, adventure sports, national park and wild life, rich cultural heritage, historical monuments, coconut palms and limpid back waters. The colourful festivals, various dances, ...
The countdown to one of the world‚Äôs biggest sporting events,
ICC Cricket World Cup 2015 jointly organized by New Zealand and Australia is
now well underway. The preparation is already
over and the host nation, New Zealand is warming up to field a summer of
cricket and one-off festivities on an international scale.
In New Zealand, ICC Cricket World Cup 2015 will play out in
seven host centres offering sports fans a chance to experience one of the most
passionate sporting countrie...
Designed for short and long term stays, the hotel is the ideal
choice for smart travellers
InterContinental Hotels Group (IHG) has launched its first
Holiday Inn Express in Hyderabad, a city known historically as a pearl trading
centre. Holiday Inn Express & Suites Hyderabad Gachibowli is located in the
heart of the city‚Äôs IT and finan...
Discover a New Island Paradise in Qatar at Banana Island
Resort Doha by Anantara
Banana Island Resort Doha by Anantara has opened its doors,
offering guests a taste of traditional Qatari hospitality and a unique resort
experience with the first and only over water villas in Qatar as well as a
dedicated wellness centre which is one-of-a-kind ...
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