New air routes could add $29bn to Africa’s revenueDr. Wolfgang Thome, moderating a panel on the theme, What is the right Aircraft for Africa, at the ongoing AviaDev conference in Cape Town earlier today. Panelists included reperesentatives from Boeing, Embraer and ATR
New intra-African air routes could yield $29 billion in direct revenue, delegates to the fourth edition of AviaDev, an event dedicated to developing connectivity to, from and within the African continent heard today.
According to estimates by MIDAS Aviation and Futureneers, this revenue, which is more than the individual GDP’s of 70pc of the countries in Africa, could be realised if the largest airports in each African country are connected with one another. Currently, only 33.7pc of this market is served, meaning that there is over USD $19bn in untapped annual revenue.
“We’ve looked at how well-connected Africa is in terms of the flights between the largest airports in every country, which mostly means the capital cities. Only a third of these routes currently have regular air services. We know that connectivity is vital for economic growth and trade, so the potential is huge. As the visa regimes become more open and regulatory constraints looser, we should see many more of Africa’s capitals connected to each other and, with that, we’ll see more of the opportunities realised,” Rebecca Rowland, a Partner at Midas Aviation.
Futureneer Advisors founder Martin Jansen van Vuuren, quantified the potential revenue from the new aviation routes said that the potential aviation growth could result in additional hotel growth, which will further add revenue to the destination.
“Considering the anticipated increase in air connectivity, estimations on the number of room nights and expenditure per person can be made. With this is mind, it is fair to say that anticipated investment of USD $194bn could be made in new and existing hotels across the continent in the coming years, further showcasing the untapped potential of Africa,” he said.
Now in its fourth year. AviaDev brings together airports, airlines, tourism bodies and suppliers and customises one-to-one meetings so that new partnerships and routes can be created. AviaDev’s managing director, Jon Howell, says the event’s mission os to connect the largest airports in each African country with one another.
“AviaDev aims to challenge the status quo through encouraging disruptive thinking. We believe our new mission crystallises the opportunity that African aviation presents, and we look forward to driving the industry forward and measuring the progress made. We are encouraged by the drive on the continent towards partnership and collaboration,” he said.