Jo'burg airport pumped R19bn into Gauteng economy in 2001

Posted On Thursday, 05 February 2004 02:00 Published by
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About 250 000 jobs were created in 2001 by tourists passing through Johannesburg International Airport (JIA)

February 5, 2004

By Frank Nxumalo

Johannesburg - About 250 000 jobs were created in 2001 by tourists passing through Johannesburg International Airport (JIA) and spending money in Gauteng, Bongani Maseko, JIA's chief executive, said yesterday.

Maseko was citing a Rand Afrikaans University (RAU) study commissioned by the Airports Company SA (Acsa) on the economic impact of JIA on Gauteng's economy.
The study showed that most of these jobs were created in the trade and catering sectors followed by manufacturing.

The contribution to the gross domestic product (GDP) of the Gauteng economy from business operating out of JIA was about R19.2 billion.

The highest contribution came from the transport, storage and communications sectors largely as a result of the dominance of airline business activity at the airport.

He said the taxation effect of business and passenger spending on the Gauteng economy, based on direct and indirect tax and the impact of additional tax paid through employment opportunities, was about R14.2 billion.
 

The RAU study concludes that "it is evident that JIA is not only important as an airport facility on its own, but that it also has a major impact on the GDP, employment opportunities, as well as the tax base of the local economy.

"The airport therefore contributes significantly towards the economic well-being of the economy and forms an integral part of the economic activity of Gauteng.

"The airport could also be considered to be a catalyst for economic development by providing the linkage between the local economy's business activities and domestic and foreign passengers making use of the airport."

Maseko said the increased activity at JIA placed an obligation on Acsa to continuously improve and upgrade infrastructural facilities at its airports network throughout the country.

This was to ease the endless passenger connectivity because of its status as a hub airport, to improve market access for cargo operators and to minimise the connecting times for other airlines also using the airport.
 


Publisher: Business Report
Source: Business Report

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