Mr. Gour Kanjilal - Director Indian Associtation of Tour Operator (IATO) Mr. Gour Kanjilal - Director Indian Associtation of Tour Operator (IATO)
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Aviation Scene
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  • Aviation Scene

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    Economic Imperatives

    A) An Important Engine For Economic Growth
  • In the global and Indian scene there is rapid economic changes.
  • In this scenario, Civil Aviation is recognized an important vehicle for economic growth.
  • Over 2000 million passengers globally per year use airlines for leisure & business
  • Around 40% of the worlds manufactured goods by value are transported by air only.

  • B) Revenue Generation
  • Aviation industry contributes substantially in national exchequer through taxation by
       Central, State and Local Govts around the world. Passengers, cargo handlers, pay Taxes
        on air tickets & cargo consignments, service charges, FBTs etc.
  • Employees pay income taxes on their salaries

  • C) Spin Off Benefits
  • Opens up new markets.
  • Help in the growth in International trade.
  • Roads, communications.
  • Infrastructure development.
  • Boost tourism & travel business.
  • Specialists in aviation related activities - Insurance, Surface transport etc.

  • D) Employment Opportunities
  • The Aviation industry at a rough estimate creates about 30 million jobs & 50%
        estimated to be direct employment.
  • Proper research is needed to have right figure about employment opportunities.

  • Air Transport & Tourism

  • Aviation is the main link for boosting of tourism.
  • Nearly 98% of outbound travel is by air
  • Similarly about 90% tourist arrivals in India by air.
  • In the present context with the liberalized open sky policy and introduction of low
        budget airlines, no frill airlines, domestic tourism has seen a big boom and many new
        areas have been opened up for tourism activities.
  • Domestic air travel increased by more than 25% last year.
  • Open Sky Policy has also increased seat capacity and this boosted international
        tourism arrivals.
  • International travel increased by nearly 15% last year. Seat Capacity in the major
        traffic generating markets during peak season was bottle neck for tourism growth.
  • With growth of tourism, it has contributed & boosted India's GDP.
  • It is estimated tourism contributed 5.8% in countries over all GDP.
  • Tourism linked with aviation industry can help in increasing foreign exchange
        earnings, foreign exchange earnings 16% growth ($5 billion in 2005)
  • Tourism is the largest sector in the world wide export of good & services.
  • At over $560 billion, it is larger than automatic, chemicals, fuels & other sector
  • Tertiary/ supplementary benefits of tourism are huge.
  • The Satellites accounting figures of world travel & tourism council suggest that $ 11.33
        billion travel & tourism Industry in India (2000) supported a $ 23.8 Billion travel &
        tourism related industry.
  • Tourism backed by Civil Aviation can create more employment - Tourism with lower
        investment generates more jobs than any other industry in the world.
  • As per WTTC, the travel & tourism economy in India which includes aviation, Hotel,
        Entertainment, transport etc. currently account for 17.4 million jobs in India or 5.8% of
        total employment.
  • This has potential rise to 25 million jobs or 6.8% of total employment by 2010.
  • Tourism & Aviation links thus bring real economic efficiency.

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