The Economic Contribution of the Qantas Group to Australia

Transcription

1 The Economic Contribution of the Qantas Group to Australia Deloitte Access Economics November 2015

2 Introduction Deloitte Access Economics was engaged by the Qantas Group to undertake an economic study of the Group s contribution to the Australian economy in As Australia s largest airline, Qantas plays a key role in the nation s economy, both as an employer and as a provider of transport services for passengers and freight. The analysis explored: the direct economic contribution of the Qantas Group s activities; the indirect economic contribution of the Qantas Group s activities as a result of its demand for intermediate inputs produced by other industries; and the facilitated domestic and international tourism expenditure associated with those who travel on Qantas Group airlines.

3 Background and approach

4 Qantas Group contributes to the economy through three channels Economic contribution studies provide a snapshot of the contribution of a company or industry at a particular point in time. Based on the income approach to Gross Domestic Product (GDP), the contribution of a company to value added can be calculated based on returns to capital, as measured by Gross Operating Surplus, and returns to labour through wages. Qantas Group contributes to the Australian economy in three main ways: directly through the wages it pays its employees and the Gross Operating Surplus it generates; indirectly through demand for intermediate inputs from its suppliers; and by facilitating tourism expenditure by domestic and international visitors who travel on Qantas Group airlines. Qantas also makes a significant social contribution by connecting regional areas. This is less readily captured in a quantitative economic framework

5 Economic contribution to Australia and the States

6 The total economic contribution from the Qantas Group s operations was $11.4 billion The Qantas Group provided detailed profit and loss information on Qantas, Jetstar and Qantas Freight which was used to calculate the economic contribution of the Qantas Group. As shown below, the Qantas Group was estimated to contribute $11.4 billion to the Australian economy in , including $5.9 billion directly and $5.4 billion indirectly as a result of the Group s demand for intermediate inputs produced by other industries. Economic contribution by business unit ($ million) Source: Deloitte Access Economics

7 The Qantas Group contributed to 61,000 jobs The Qantas Group was estimated to support employment of 61,197 Full Time Equivalent employees (FTEs): 25,601 directly and 35,596 indirectly. Employment by business unit (FTEs) Source: Deloitte Access Economics

8 Contribution per capita by State The Qantas Group also makes a significant contribution at a state and territory level as a result of its highly dispersed economic operations. The estimated contribution of the Qantas Group at a state level ranges from $315 per capita in South Australia to $616 per capita in the Northern Territory. Contribution per capita by state and territory Source: Deloitte Access Economics

9 Contribution to domestic and international tourism

10 Qantas Group facilitates over $6.2 billion in domestic tourism Based on expenditure by domestic tourists who fly on Qantas Group airlines, Qantas was estimated to facilitate $6.2 billion in domestic tourism value added, including $3.5 billion directly and $2.8 billion indirectly as a result of the flow-on effect of tourism expenditure for other sectors in the economy. Economic contribution to domestic tourism ($ million) Source: Deloitte Access Economics

11 Qantas Group facilitates over $3.2 billion in international tourism Based on expenditure by international tourists who fly on Qantas Group airlines, Qantas was estimated to facilitate $3.2 billion in international tourism value added, including $2.0 billion directly and $1.3 billion indirectly as a result of the flow-on effect of tourism expenditure for other sectors in the economy. Economic contribution to international tourism ($ million) Source: Deloitte Access Economics

12 General information only This presentation contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the Deloitte Network ) is, by means of this presentation, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this presentation. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's approximately 170,000 professionals are committed to becoming the standard of excellence. About Deloitte Australia In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia s leading professional services firms. Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 5,400 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit our web site at Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited 2014 Deloitte Touche Tohmatsu