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            january 18, 2020

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SIL 2020

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Reforms needed to maximise aviation benefits in South Africa


Over the next 20 years South Africa could double its air transport market, resulting in 23.8 million more passengers and 372,000 new jobs, and a total of US$20.2 billion in GDP by 2037, said an International Air Transport Association (IATA) report.
IATA identified three areas where government action can enable aviation to continue its growth trajectory and generate even more value in South Africa.
It called for reform of harmful policies on immigration, a reduction in taxes and charges that are increasing the cost of doing business in the country.
It also advised undertaking a harmonised strategic approach to policy-making with transport and aviation central to economic planning.
"The results of the study are a reminder that robust air connectivity unlocks significant economic and social benefits," said IATA's director general and CEO Alexandre de Juniac.
"With more than 20.9 million passengers departing and arriving from airports in South Africa every year, there is good reason to be proud of all that aviation has achieved here," he said.
But he said he was also concerned by the 4.4 per cent and 3.6 per cent contractions in the transport and tourism sectors, which reflect uncertainties and diminished confidence.
"Government policy reforms to promote business, trade, investment and tourism are essential to make the most of air transport to the benefit of the South African people and economy," he said.

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