Air transport industry adds $12 billion to South Africa’s GDP

The air transport industry in South Africa contributes $12 billion, or 3.5 percent, to the nation’s GDP, according to an International Air Transport Association (IATA) study.

The country’s air transport sector also supports 490,000 jobs, including employment related to foreign tourists visiting South Africa, said the study, which was conducted on behalf of IATA by Oxford Economics.

“The study confirms the vital role of air transport in facilitating over $110 billion in exports, some $140 billion in foreign direct investment and around $9.2 billion in inbound leisure and business tourism for South Africa,” Muhammad Ali Albaki, IATA regional vice president for the Middle East and Africa, said. “Now with the country in recession it’s time to re-double efforts to promote South Africa as a destination for business, trade and tourism.”

Albaki, who recently made his first visit to Africa in his new role at IATA, urged the South African government to remove any policies or bureaucracy that impede economic growth, job opportunities, trade and tourism.

South Africa’s transportation infrastructure ranks it first among African nations, according to a World Economic Forum study, and 48th globally.

For cost competitiveness, South Africa ranks 17th while it ranks 19th for visa openness.

Annually, 390,000 aircraft take off or land at the nation’s major airports. South Africa’s busiest airport by passenger volume is O.R. Tambo International Airport. In 2014, 18.5 million passengers went through the airport.