The Economic Impact Of Luxembourg Airport 29 April 2016

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1 The Economic Impact Of Luxembourg Airport 29 April 2016

2 What is Economic Impact Economic Impact of Luxemburg Airport refers to the contribution of the Airport to the Luxembourg Economy This can be measured in a number of ways: Employment Wages Contribution to the Gross Domestic Product (GDP) 2

3 4 categories of Economic Impact Direct Economic Impact Indirect Economic Impact Induced Economic Impact Catalytic Economic Impact 3

4 Direct Economic Impact What is Direct Economic Impact? The employment, wages and GDP associated with the operation and management of activities at Luxembourg Airport. This includes the Airport Operator, the Airlines, Air Traffic Control, General Aviation, Ground Handling, Security, Police, Customs, Maintenance, Cargo Center etc. Also included are closely connected businesses such as Logistics Operators at the Cargo Center, nearby hotels, and ground transportation ( buses, taxis) 4

5 Indirect Economic Impact What is Indirect Economic Impact? The employment, wages and GDP generated by downstream industries that supply goods and services to the companies which provide direct employment at Luxembourg Airport These include for example companies supplying food for inflight catering, construction companies providing construction works, Travel agents booking flights, companies providing accounting & legal services etc. 5

6 Induced Economic Impact What is Induced Economic Impact? This captures economic activity generated by the employees of firms directly or indirectly connected to the airport spending their wages in the national economy. For example an airport or airline employee might spend his/her wages on groceries, restaurants, child care, dental services, home renovations etc. which, in turn, generate employment in a wide range of sectors of the general economy 6

7 Catalytic Economic Impact What is Catalytic Economic Impact? This captures the economic value and employment that the airport facilitates for businesses in other sectors of the economy It demonstrates that without an efficient airport and the air services the economy would not be as large or affluent Examples are: Tourism: tourists spend in hotels, restaurants, theatres, rental cars Trade in Goods and services: are facilitated by the presence of the airport, which provides a much wider customer base for goods & services 7

8 Catalytic Economic Impact Further Examples are: Investment: Air connectivity is important in attracting international headquarters and foreign investment into a country. Airports are essential assets for regions wishing to expand economic and industrial activity. Productivity: Air Transportation offers access to new markets, which in turn enable businesses to achieve greater economies of scale. Many scientific research papers support the calculation of catalytic economic impact (see report for more details) 8

9 Total Economic Impact 9

10 Research Methodology The research is based on 3 sources of data: Airport Employment data: each company and organisation active on the airport provided employment numbers (Status end 2015, see separate list) Input-Output Table of Economic Multipliers (Eurostat). This is a representation of the flows of economic activity within a region or country Airport traffic and connectivity: the number of destinations available at the airport, and the frequency of flights 10

11 Research Methodology 12 décembre

12 Direct Economic Impact 12

13

14 Indirect and Induced Economic Impact 14

15 Catalytic Economic Impact Based on connectivity offered by the airport

16 Catalytic Economic Impact 16

17 Catalytic Economic Impact 17

18 Total Economic Impact 18

19 Employment Details 19

20 Employment Details 20

21 Employment Details 21

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