Eruption aftermath. Nearly US$5 bn in global GDP has been lost to air travel disruption caused by the Icelandic volcano eruption, according to a report launched at the World Travel and Tourism Council’s 10th Global Travel & Tourism Summit in Beijing, China. The study by leading economic forecasting consultancy Oxford Economics finds that passengers, airlines and the destinations themselves were not the only losers in the recent airspace shutdown. In the first week after Eyjafjallajokull spewed a giant ash plume into the sky, the temporary closure of large portions of European airspace resulted in US$4.7 bn of lost global GDP. The roughly 5,000 further flights cancelled through to 24 May added a further five percent to that figure, which represents the damage done to economies around the globe.
Speaking at the event Adrian Cooper, CEO at Oxford Economics, said: “The far reaching impacts of the recent disruption to air transport have of course been felt acutely by travellers, airlines and destinations. But the impact has also been felt by those who rely on goods that are imported and exported by airfreight, and on general production and productivity. This report shows the integral role aviation plays in the basic and every day functions of society and commerce.”
‘The Economic Impacts of Air Travel Restrictions Due to Volcanic Ash’ reports that for the seven-day period from 15-21 April, more than 100,000 fewer flights crossed European airspace than in the previous week, representing a 53 percent fall. Net aviation sector losses amounted to US$2.2 billion after accounting for deferred travel; net visitor expenditure losses tallied US$1.6 billion after accounting for monies spent by stranded passengers is taken into account. With more than seven million passengers and nearly all international regional travel involving Europe affected, the wider economic impacts have been felt across the globe.
Summary of regional economic impacts of one-week aviation shutdown:
• Americas: US$957 million in GDP
• Asia: US$517 million in GDP
• Europe: US$2,632 million in GDP
• MEAF: US$591 million in GDP
Download: www.oxfordeconomics.com/free/pdfs/volcanicupdate.pdf
