The Economic Contribution of the Qantas Group to Australia Deloitte Access Economics November 2015
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 2014-15. 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.
Background and approach
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
Economic contribution to Australia and the States
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 2014-15, 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
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
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
Contribution to domestic and international tourism
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
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
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