AP Economics
Brynn VandeZande
As one of the most popular methods of long distance travel and business, the air transportation industry contributes to the success of the global economy on a larger scale than most people might imagine. This industry has many different uses, including the common passenger travel, and global business through exporting/importing of goods. Over the years, demand within the airline industry has been rising steadily. This rapid growth was caused in part by rising GDP, disposable income, and living standards, since this creates an environment where people are more willing to travel for both leisure and business purposes.
Overall, aviation in general supports an immense 65.5 million jobs worldwide and contributed $2.7 trillion to global GDP. In 2004, North America accounted for 37% of global employment in the aviation industry, but accounted for over 50% of the contribution of air transport to global GDP. This is clear evidence of how widespread the effects are, and on how large of a scale they act upon. Michael Gill, Executive Director of ATAG, states, “It’s a fascinating look at the scope of the aviation industry and our role in the world, when you realise that aviation, if it were a country, would be the 20th largest economy in the world, supporting 65.5 million jobs and nearly three trillion dollars in economic impact.”
Not only is the direct impact of aviation so substantial, but this industry is also an indirect source of economic growth in other aspects of economy, such as tourism and global business. Specifically, the tourism industry is directly linked to air transport, and the tourism industry in itself counts for 3.8% of world GDP and millions of jobs on top of this. By utilizing air transport to bring visitors, it is able to facilitate growth and create jobs in this large industry as well, thus creating a spin-off effect on these other industries and benefiting the world economy in more ways than one.Additionally, ⅓ of international world trade occurs by air, and seeing that world trade is rising at almost double the rate of global GDP, economies around the world are going to be becoming increasingly reliant on air travel to facilitate this trade. By 2036, it is expected that 97.8 jobs are going to be supported by the air transport industry, contributing $5.7 trillion to the global economy.
It has been made clear of the vast economic benefits that the air transport industry has created, however, it should not be taken lightly the social benefits that arise from this as well. It is well known that this often can improve the quality of life through leisure and cultural experiences. Additionally, through tourism, air transport helps to reduce poverty and improve living standards. Overall, air transportation is not only able to connect our global economy, but also link the people of our world together.
Works Cited
“The Economic & Social Benefits of Air Transport.” Air Transport Action Group, www.icao.int/meetings/wrdss2011/documents/jointworkshop2005/atag_socialbenefitsairtransport.pdf.“Enabling Trade.” Aviation Benefits Beyond Borders, aviationbenefits.org/economic-growth/enabling-trade/.
“The Future.” Aviation Benefits Beyond Borders, aviationbenefits.org/economic-growth/the-future/.
“Social and Economic Benefits of Aviation.” Air Transport Action Group, www.atag.org/our-activities/social-and-economic-benefits-of-aviation.html.
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You have a great paper Brynn. What shocked me the most is how by 2036, it is estimated that 97.8% of jobs are going to be supported by the air transport industry, but it makes sense. Whether you are selling things that were flown in from other countries, use airplanes to go on business trips, or work in a manufacturing plan producing air planes, most jobs already can be traced back to the air transport industry. My one question is this, with the coronavirus drastically impacting and limiting air travel, to what extent is that going to impact our countries GDP?
ReplyDeleteTo add to the question with the coronavirus, how will changes in pressure regarding climate change add to that? I think that over time air travel is going to have to go down. I see this like coal energy where it works in the moment but will have to change over time as people change.
DeleteRally good read, would recoomend. It was really weird that by 2036, it is estimated that 97.8% of jobs are going to be supported by the air transport industry. But I mean most business men will eb using air trasportation to get places. Good job!
ReplyDeleteThis is a really good article! What got my attention the most was that airline transportation supports 65.5 million jobs worldwide. It also shocked me how in 2036 it's estimated that 97.8% of jobs are supposed to be supported by the air transport industry. Overall, you had a lot of interesting facts in this article and it was very engaging while I was reading it. It was also interesting to me that 1/3 of international world trade is done by air transportation. My question is that with the corona virus getting more prevalent every day, how will this affect air transportation? Will people stop using it? Will the prices of tickets go down due to that? In general you did a really great job with this article!
ReplyDeleteWhat shocked me the most is how by 2036, it is estimated that 97.8% of jobs are going to be supported by the air transport industry. Overall, you put a lot of good, detailed facts in this article. How would the corona virus affect the air transportation? Will there be less amount of people using air transportation, or will there be a stoppage in all flights? Good job!
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