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Economic impact of the Athens International Airport
Athens, November 2018
FOUNDATION FOR ECONOMIC & INDUSTRIAL RESEARCH11 T. Karatassou St, 11742 Athens, Greece, Tel: (+30) 210 9211 200-10, Fax: (+30) 210 9233 977, www.iobe.gr
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From Infrastructure to Business Community
InfrastructureBusiness
Entity
Airport
Business
Community
Impact
on Economy
and Society
2 Runways
24hour
operation
26 million
passenger
capacity
Aeronautical
Business
Commercial
Business
Profitability
CSR
24+ million
passengers
4.9 million
visitors
5,400
Suppliers
Study objectives
3
Present and analyse the latest data and developments in the operation of Athens International Airport (AIA)
Estimate the contribution of AIA to economic activityand employment
Highlight the importance of AIA for the development of the Greek tourism industry
1. Athens International Airport: Current state
4
Total passenger traffic increased substantially during the past five years (+73% cumulative growth)
5
Source: Civil Aviation Authority
0
5
10
15
20
25
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
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14
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15
20
16
20
17
million
pa
sseng
ers
Passenger traffic in the Athens International Airport, 2002-2017
AIA achieved the strongest increase in passenger traffic among the 30 largest European airports
between 2013 and 2017
+73%
Revenues in the AIA economic system reached €2 billion, higher by 59% compared to 2012
6
Airlines321,2
Airlines832,3
AIA S.A.338,8
AIA S.A.454,9
Concessionaires219,9
Concessionaires331,8
State authorities 121,9
State authorities 148,1
Retail park 141,7
Retail park 140,9
Users 121,9
Users 125,3
Outsourcers 38,8
Outsourcers 37,6
0
500
1000
1500
2000
2500
2012 2017
mill
ion
€
Turnover by partner in the AIA economic system, 2017 against 2012
€1,304
€2,071+58.8%
Employment in the AIA economic system grew by 23% cumulatively during the past six years
7
Users2.4
Users3.8
Airlines2.6
Airlines3.3
Concessionaires2.4
Concessionaires3.1
State authorities2.1
State authorities2.2
Outsourcers1.7
Outsourcers2.0
Retail park 1.2
Retail park 1.2
AIA S.A. 0.7
AIA S.A. 0.7
0
4
8
12
16
20
2012 2017
tho
usa
nd
job
s
Employment by partner in the AIA economic system, 2017 against 2012
13.2
16.3+23.5% More than
2. Economic impact of the Athens International Airport
8
2.1 Methodological approach
9
The estimation of the overall economic impact of AIA takes into account the sector interactions in the Greek economy
10
Impact of the AIA economic system
Direct
effect
Indirect
effect
Total
impact
(GDP, employment,
tax revenues)
Induced
effect
Operation of the AIA
economic system
• Airport company
• Airlines
• Users
• Outsourcers
• Concessionaires
• Retail park
• State authorities
Products and
services along
the AIA supply
chain
Consumer spending out of
labour income created directly
or indirectly by the AIA
economic system
The indirect and induced effects are estimated with an Input-Output model of the Greek economy
Wider effects of activity
the AIA economic system
Expenditure
of foreign
residents
arriving at
AIA
Transportation
of AIA visitors
2.2 Total impact
11
The total contribution of AIA in terms of GDP is estimated at 4.4% of GDP (€7.9 billion) in 2017
12
Source: IOBE analysis
4.8%
of total
domestic
employment
The impact on employment from the
operation of AIA is estimated at almost
181,000 jobs in 2017 (4.8% of total
employment in the domestic labor market)
Economic impact of the Athens International Airport
on GDP (million €), 2017
Economic impact of the Athens International Airport
on employment (thousand jobs), 2017
Wider effects
4,422 Wider effects
107.9
AIA
economic
system
73.2AIA
economic
system
3,444
4.4%of GDP
2.3 Impact of AIA economic system
13
The contribution of the AIA economic system alone is estimated at 1.9% of GDP (€3.4 billion) in 2017
14
Source: IOBE analysis
In terms of employment, the total contribution from the AIA economic system is estimated at about 73,200 jobs
Partial multiplier
Substantial multiplier effects in the economy due to the operation of the AIA economic system
15
GDP multipliers from the operation of Athens
International Airport economic system
Employment multipliers from the operation of Athens
International Airport economic system
Partial multiplier: The multiplier effect on GDP, employment, etc. due to indirect effects
Total multiplier: The multiplier effect by combining indirect and induced effects
Source: ΙΟΒΕ analysis
Each euro of GDP produced
in AIA generates 3.4 euro of GDP
in the Greek economy
€1 GDP
in AIA
€1.6 indirect
effect on GDP
€3.4total impact on GDP
Each job in AIA corresponds
to 4.5 full-time equivalent jobs
at national level
1 Job
in AIA
2.1 jobs
indirect
4.5Jobs total
Partial multiplier
Total multiplierTotal multiplier
The largest total contribution to GDP from the AIA economic system comes from the operation of airlines
16
Source: ΙΟΒΕ analysis
0
200
400
600
800
1000
1200
1400
1600
Airlines AIA S.A. Concessio-naires
Users State autorities
Retail park
Outsourcers
mill
ion
€
Economic impact on GDP by partner of the AIA economic system , 2017
Direct Indirect Induced
0
5
10
15
20
25
30
35
Airlines Concessio-naires
Users State autorities
AIA S.A. Outsourcers Retail park
tho
usa
nd
job
s
Economic impact on employment by partner of the AIA economic system, 2017
Direct Indirect Induced
Users and airlines have the largest direct impact on employment
2.3 Broader effects
17
One out of six foreign residents arrived to Greece via Athens International Airport in 2017
18
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
mill
ion
pas
sen
gers
International travelers arriving at Athens International Airport, 2007-2017
Incoming foreign travelers
in the country from
Athens International
Airport doubled in the
past five years
Source: Civil Aviation Authority
+87%
The contribution of inbound foreign travelers through AIA, in terms of travel receipts, is estimated at 2.9 billion in 2017
19
0
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
mill
ion
€
Travel expenditure by incoming international travelers to Greece via AIA, 2007-2017
EU countries Non-EU countries Total
This figure corresponds to 20% of total travel expenditure made by inbound foreign travelers to Greece in 2017
Source: Bank of Greece Data processing: ΙΟΒΕ
+48%
The spending of international travelers through AIA generated €1.6 billion GDP (direct impact) in 2017
20
Spending of international foreign travelers arriving at
AIA: €2.9 billion
Domestic production: €2.3 billion
Value Added: €1.1 billion
Taxes on products: €0.5 billion
Intermediate Consumption: €0.7
billionImports: €0.6 billion
Flow of travel expenditure in the economy
Accommodation
Food & Beverage
Retail
Transportation
Recreation/Entertainment
Direct impact
on GDP: €1.6 billion
The total contribution to GDP of spending by incoming travelers through AIA is estimated at 2.3% of GDP (€4.1 billion) in 2017
21
Inbound travel expenditures by international travelers arriving at AIA support about 102,000 jobs
at national level (2.7% of the total domestic employment)
Source: ΙΟΒΕ analysis
The contribution to GDP from transportation services is estimated at €290 million - 3/5 of it come from public transport operators & taxi
22
Τhe contribution to employment from transportation services to AIA visitors is estimated at about 5,200 jobs
Taxi€ 102
Car rentals€ 52
Attiki Odos motorway
€ 44
Metro€ 40
Airport bus line€ 30
Suburban railway
€ 12
Mini-buses € 10
Share of total contribution on GDP by mode of transportation
Source: ΙΟΒΕ analysis
2.4 Contribution of the AIA economic system at regional level
23
The impact on GDP of Attiki region from the AIA economic system is estimated at €2.9 billion (3.5% of the region’s GDP)
24
The contribution to employment from the AIA economic system in Attiki region is estimated at about 56,100 jobs or 4.1% of the region’s employment
Source: ΙΟΒΕ analysis
1019
568
1337
2923
0
500
1000
1500
2000
2500
3000
3500
Direct in Attiki Indirect in Attiki Induced in Attiki Total in Attiki
mill
ion
€
Economic impact on GDP from the operation of AIA economic system at regional level, 2017
16,3
15,9
23,8
56,1
0
10
20
30
40
50
60
70
Direct in Attiki Indirect in Attiki Induced in Attiki Total in Attiki
tho
usa
nd
job
s
Economic impact on employment from the operation of AIA economic system at regional level, 2017
The number of employed people in AIA residing in the area of Mesogeia stood at about 3,700 in 2017
25
Considering the indirect and induced effects, the economic impact on employment in the Mesogeia area is estimated atabout 11,600 jobs
Source: AIA, ΙΟΒΕ analysis
Employed people in AIA economic system residing
elsewhere in Attiki region
12,6
Employed people in AIA economic system residing in the area of
Mesogeia3,7
Employment (direct) in the AIA economic systembased on the place of residence (in thousands), 2017
2.5 Comparison with previous estimates
26
The contribution of AIA to the Greek economy has strengthened compared to previous years
27
Additional contribution to GDP in 2017
The economic contribution from AIA increased by €2.8 billion or 1.8 percentage points of GDP compared
with 2012 (from 2,6% to 4.4% of GDP in 2017)
Source: IOBE analysis
The total contribution to employment increased by about 81,000 jobs (from 2.5% to 4.8% of total employment)
28
Source: IOBE analysis
Additional contribution to employment in 2017
The higher contribution is attributed to the strong growth of passenger traffic at a period of GDP stagnation
29
(*) GDP at constant prices
Source: Civil Aviation Authority, Hellenic Statistical Authority
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
100
120
140
160
180
200
220
240
260
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
mill
ion
fo
reig
n a
rriv
als
bill
ion
€
GDP of the Greek economy and international arrivals at AIA, 2008-2017
International arrivals at AIA (right axis) GDP (left axis)
The contribution of AIA in terms of employment (without wider effects) is similar to that of the airports of Dublin and Amsterdam
30
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
AMS(2012)
CDG(2012)
ARN(2012)
ATH(2017)
DUB(2016)
BRU(2015)
ZRH(2016)
LGW(2016)
Contribution of airport economic systems, share of national GDP
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
ARN(2012)
AMS(2012)
ATH(2017)
DUB(2016)
BRU(2015)
CDG(2012)
ZRH(2016)
LGW(2016)
Contribution of airport economic systems,share of total domestic employment
(*) The economic impact stems from the operation of the airports without considering broader effects such as tourism
(**) The figures in the brackets show the year for which the impact is estimated
(***) AMS - Amsterdam Airport Schiphol, CDG - Charles de Gaulle Airport, ARN - Stockholm Arlanda Airport, ATH - Athens International Airport, DUB - Dublin Airport, ZRH - Zurich Airport, LGW London Gatwick
Airport, BRU - Brussels Airport
Source: PWC, Oxford economics, National Bank of Belgium, Infras/BAK Basel, Intervistas, IOBE
3. Conclusions
31
Conclusions
32
AIA is a significant
driver of economic
development at
regional and
national level
• Its contribution to GDP
is estimated at €7.9 billion (4.4% of GDP) in2017 • The impact on
employment from the
operation of AIA is
estimated at 181,000
jobs in 2017 (4.8% of
total domestic
employment)
More than 16,000
people are employed
in the businesses
operating at
the airport
The spending of
foreign travelers at
AIA has multiplier
effects on the
economy
• In terms of GDP, the
contribution of the AIA
economic system is
estimated at €3.4 billion
in 2017 (or 1.9% of
Greek GDP)• In terms of employment, the impact of the AIA
economic system is
estimated at about
73,000 jobs in 2017
• Travel expenditure by
foreign travelers arriving at
AIA is estimated at €2.9 billion in 2017• Their contribution to GDP is
estimated at €4.1 billion (or
2.3% of GDP) in 2017
• In terms of employment, more than 102,000 jobs at
national level are supported
by the arrivals of foreign
travelers through AIA