The International Air Transport Association (IATA) has announced new data showing that aviation and aviation-induced tourism support 1.1 million jobs and contribute $32.9 billion to Brazil’s GDP, an amount equivalent to 1.4 percent of the country’s GDP.
These findings are among the highlights of “The Importance of Air Transport in Brazil” study conducted by Oxford Economics on behalf of the IATA.
“Air transport facilitates exports, foreign direct investment and tourism. However, by adopting policies that ensure a more stable and competitive operating environment for the airlines, Brazil could reap much larger dividends from aviation,” said Peter Cerda, IATA’s regional vice president for the Americas, who is in Brazil for the release of the study.
According to the study, Brazil’s Infrastructure Quality Score is 4 out of 7, a handicap for the efficient operation of the region’s air industry and one that detracts from the passenger experience, the IATA said. Entry visa requirements also weigh on Brazil’s ability to attract visitors, the country’s Visa Openness Score is just 2 out of 10.
The IATA also said that Brazil’s unorthodox fuel policies that artificially increase industry operating costs by $560 million annually while restrictive rules covering baggage and airline tickets also weigh on the industry’s cost competitiveness.
“Removing the artificial barriers that are holding back the industry in Brazil is paramount. Air transport contributes 3 percent of GDP in Chile, 3 percent in Ecuador and 2.1 percent in Colombia; at just 1.4 percent of GDP in Brazil there is considerable room for improvement,” said Cerda.