The Economic Impact of Emirates Airline Flights on Greater Vienna/Austria - con.os tourismus.consulting gmbh
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
The Economic Impact
of Emirates Airline Flights on
Greater Vienna/Austria
Commissioned by
con.os tourismus.consulting gmbh
Altenbergerstraße 40 Hietzinger Hauptstraße 45
4040 Linz 1130 Wien
DISPOSITION
TABLE OF FIGURES.........................................................................III
TABLE OF CHARTS.......................................................................... IV
EXECUTIVE SUMMARY...................................................................... V
1. CURRENT SITUATION AND SCOPE OF STUDY ............................... 1
1.1 INITIAL POSITION ............................................................................... 1
1.2 AIM OF RESEARCH .............................................................................. 2
1.3 METHODOLOGY AND LIMITATIONS ............................................................ 2
1.4 CHAPTER OVERVIEW............................................................................ 3
2. IMPACTS OF EMIRATES’ FLIGHTS ON VIENNA/ AUSTRIA ................ 4
2.1 SOURCE MARKET ANALYSIS ................................................................... 4
2.2 POTENTIAL IMPACT OF ADDITIONAL EMIRATES FLIGHTS ON OTHER CARRIERS .......... 5
2.2.1 Relevant International Services by Austrian Airlines .................................. 5
2.2.2 Market Shares ..................................................................................... 6
2.2.3 Stimulation of Markets.......................................................................... 9
2.3 MIDDLE EAST- A GROWING HIGH POTENTIAL MARKET FOR AUSTRIAN TOURISM ..... 10
2.4 CONNECTIVITY BENEFITS FOR AUSTRIA ................................................... 11
3. THE METHODOLOGY FOR ECONOMIC IMPACT ANALYSIS ...............12
3.1 INTRODUCTION ................................................................................ 12
3.2 ECONOMIC MULTIPLIERS ..................................................................... 12
3.3 ECONOMIC IMPACTS OF EMIRATES’ OPERATIONS ......................................... 14
4. ECONOMIC IMPACTS ASSOCIATED WITH EMIRATES AIRLINE
OPERATING IN AUSTRIA .................................................................15
4.1 INTRODUCTION ................................................................................ 15
4.2 OPERATION 7 TIMES WEEKLY, 2010/11, DUBAI-VIENNA .............................. 15
4.3 OPERATION 13 TIMES WEEKLY, 2011/12, DUBAI-VIENNA ............................. 16
4.4 OPERATION 21 TIMES WEEKLY, DUBAI-VIENNA .......................................... 17
4.5 INCREMENTAL AND TOTAL ECONOMIC IMPACTS ........................................... 18
4.6 INCREASED CARGO CAPACITY ............................................................... 20
4.6.1 Export: Vienna – Dubai – 6th Freedom Destination ................................. 20
4.6.2 Import: 6th Freedom Destination – Dubai – Vienna................................. 21
i
5. ECONOMIC IMPACTS OF EMIRATES INCOMING PASSENGERS ON
AUSTRIA .......................................................................................22
5.1 INTRODUCTION ................................................................................ 22
5.2 OPERATION 7 TIMES WEEKLY, 2010/11, DUBAI-VIENNA .............................. 22
5.2.1 Economic Impact of Stimulated Non-resident Visitor Spending in Austria ... 23
5.3 OPERATION 13 TIMES WEEKLY, 2011/12, DUBAI-VIENNA ............................. 25
5.4 OPERATION 21 TIMES WEEKLY, DUBAI-VIENNA .......................................... 26
5.5 INCREMENTAL AND TOTAL ECONOMIC IMPACTS ........................................... 27
6. ECONOMIC IMPACT SUMMARY...................................................29
7. QUALITATIVE BENEFITS ...........................................................31
7.1 IMPACTS ON AUSTRIAN MACRO- AND MICRO-ECONOMY ................................. 32
7.2 IMPACTS ON AUSTRIAN TOURISM ........................................................... 33
BIBLIOGRAPHY
APPENDIX A
SUMMARY OF ECONOMIC IMPACT ASSOCIATED WITH EMIRATES AIRLINE
OPERATING IN AUSTRIA
APPENDIX B
SUMMARY OF ECONOMIC IMPACT OF NON-RESIDENT VISITOR SPENDING
IN AUSTRIA
APPENDIX C
GLOSSARY OF TERMS
ii
TABLE OF FIGURES
Figure 1: Rising demand between Dubai and Vienna ................................................. 1
Figure 2: Source market analysis of traffic between Dubai and Vienna based on 2010/11
data...................................................................................................... 5
Figure 3: Average market shares on Austrian Airlines/ Emirates common points 2010.... 6
Figure 4: Development of total economic impact of Emirates operations in Greater Vienna
and Austria .......................................................................................... 19
Figure 5: By EK operations created full-time equivalent employment in Greater Vienna
and Austria .......................................................................................... 19
Figure 6: Past and estimated annual export cargo volume on Vienna-Dubai-6th freedom
route .................................................................................................. 20
Figure 7: Past and estimated annual export cargo volume on 6th freedom-Dubai-Vienna
route .................................................................................................. 21
Figure 8: Development of total impact of non-resident visitors in Greater Vienna and
Austria ................................................................................................ 28
Figure 9: By EK operations created full-time equivalent employment in Greater Vienna
and Austria .......................................................................................... 28
iii
TABLE OF CHARTS
Chart 1: Total Traffic on DXB-VIE-DXB route in numbers and percentiles in 2010/11 .. 4
Chart 2: Total number of Austrian Airlines passenger bookings between Dubai and
Vienna 2010 ........................................................................................ 6
Chart 3: Share of common points of Austrian Airlines & Emirates out of Austrian
Airlines’ transfer passengers between Dubai and Vienna in 2010.................. 8
Chart 4: Estimated new traffic from additional Emirates air services ......................... 9
Chart 5: Distribution of visitors from Middle East in 2010 ...................................... 10
Chart 6: Design of operation scenarios and economic impact data.......................... 14
Chart 7: Impact of 7 weekly services to Vienna, approx. in one year ...................... 16
Chart 8: Impact of 13 weekly services to Vienna, approx. in one year..................... 17
Chart 9: Impact of 21 weekly services to Vienna, approx. in one year..................... 17
Chart 10: Summary of direct impacts for 7, 13 and 21 weekly services to Vienna,
approx. in one year............................................................................. 18
Chart 11: Touristic impact of 7 weekly services to Vienna, approx. in one year .......... 23
Chart 12: Touristic impact of stimulated non-resident visitor spending, approx. in one
year.................................................................................................. 24
Chart 13: Incremental touristic impact of 13 weekly services to Vienna additional to 7
weekly flights, approx. in one year ........................................................ 25
Chart 14: Estimated incremental touristic impact of 21 weekly services additional to 7
weekly flights, approx. in one year ........................................................ 26
Chart 15: Summary of touristic impacts of 7, 13 and 21 weekly services to Vienna,
approx. in one year............................................................................. 27
Chart 16: Total economic impact summary ........................................................... 30
Chart 17: Information about Emirates' expenditure in Austria.................................. 35
iv
EXECUTIVE SUMMARY
Emirates Airline is one of the world’s largest independent airlines and operates to a global
network of over 100 cities in 67 countries. In 2004, Emirates Airline started daily opera-
tions at Vienna International Airport and has carried more than 215,000 round trip pas-
sengers between Dubai and Vienna in the period of April 2010 – March 2011.
Starting with the Summer 2011 schedule, Emirates commenced operation of 13 weekly
flights between Dubai and Vienna, meaning additional 6 weekly flights – having started
daily services in 2004. A 14th weekly frequency is already planned to be added in the
near future, meaning one additional flight to the existing 13 operations. For the purposes
of this study, a Emirates triple daily operation has also been modelled as a possible fu-
ture scenario in terms of its economic impact.
Emirates contracted the Austrian company con.os tourismus.consulting to examine the
potential economic impact on Austria of additional flights as described above. Con.os
tourismus.consulting is specialized in the field of consulting and support of organizations,
projects and enterprises with a touristic focus. Con.os tourismus.consulting has its head-
quarters in Linz and Vienna, working with national and international clients from the tour-
ism and leisure industry.
Aim of Research & Methodology
The economic impact of Emirates’ flights to Austria from 2004/2005 onwards was ana-
lyzed on the basis of 7 weekly flights. A further analysis based on the Summer schedule
2011, including 13 weekly flights between Dubai and Vienna, was made and is supple-
mented by an additional 21 weekly flights scenario. As for this study the focus of the
analysis was on following points:
Economic Impacts associated with Emirates Airline operating in Austria
Economic Impacts of Emirates incoming passengers on Austria
Within each of the two focuses following impacts were examined:
Total economic activity associated with Emirates operating in Austria and non-
resident visitor tourism spending in Austria
Impact of generated income/wages
Contribution to the Austrian National GDP
Full-Time equivalent employees
General taxation impact
The study comprises primary research based on secondary data, which was provided by
Emirates and different other sources to con.os. Current data available from sources such
as Statistics Austria or the Austrian National Tourist office served as an additional basis
for the analyses conducted.
vSummary of Economic Impacts associated with Emirates and Tourism
spending
The study examines the economic impacts of Emirates expenditure and non-resident visi-
tor spending in Austria for the past (7 flights per week), current (13 flights per week)
and possible future operations (21 flights per week) of Emirates on the route between
Dubai and Vienna. Using the input/output multipliers of Statistics Austria, con.os is able
to estimate the economic impact of the above mentioned three operations.
7 flights per week to Vienna
(2010)
(total numbers equate to approximately one year)
107,444 existing passengers from Dubai to Vienna (and a total of
211,659 round trip passengers in 2010 between Dubai and Vienna)
Full-Time Jobs
Total Vienna: 2,674 total full-time jobs
Total Austria: 3,303 total full-time jobs
1,161 direct full-time jobs & 661 indirect full-time jobs & 852 in-
duced full-time jobs (Vienna) / 1,481 induced full-time jobs (Aus-
tria)
Economic activity Emirates flights:
Total Vienna: € 44.8 million
Total Austria: € 55.1 million
€ 19.8 million direct, € 11.1 million indirect and € 13.9 million
induced (Vienna) / € 24.2 million induced (Austria)
Tourism spending of non-resident visitors:
Total Vienna: € 186.9 million
Total Austria: € 231.1 million
€ 81 million direct, € 46.2 million indirect, € 59.7 million in-
duced (Vienna) / € 103.9 million induced (Austria)
€ 24.3 million of tourism spending in direct annual tax revenues for
Government
vi13 flights per week to Vienna
(2011/12 estimated)
(total numbers equate to approximately one year)
156,232 passengers from Dubai to Vienna (and a total of 312,463
round trip passengers between Dubai and Vienna)
Full-Time Jobs
Total Vienna: 4,110 total full-time jobs (representing a 54 % in-
crease in comparison to 7 flights per week)
Total Austria: 5,076 total full-time jobs (representing a 54 % in-
crease in comparison to 7 flights per week)
1,784 direct full-time jobs & 1,016 indirect full-time jobs & 1,310
induced full-time jobs (Vienna) / 2,276 induced full-time jobs (Aus-
tria)
Economic activity Emirates flights:
Total Vienna: € 84.9 million (representing a 90 % increase in com-
parison to 7 flights per week)
Total Austria: € 104.4 million (representing a 90 % increase in
comparison to 7 flights per week)
€ 37.5 million direct, € 21 million indirect and € 26.4 million
induced (Vienna) / € 45.9 million induced (Austria)
Tourism spending of non-resident visitors:
Total Vienna: € 272.8 million (representing a 46 % increase in com-
parison to 7 flights per week)
Total Austria: € 337 million (representing a 46 % increase in com-
parison to 7 flights per week)
€ 118.4 million direct, € 67.5 million indirect, € 86.8 million
induced (Vienna) / € 151.1 million induced (Austria)
€ 35.5 million (of tourism spending) in direct annual tax revenues
for Government (representing a 46 % increase in comparison to 7
flights per week)
vii21 flights per week to Vienna
(hypothetical future scenario)
(total numbers equate to approximately one year)
222,156 passengers from Dubai to Vienna (and a total of 444,311
round trip passengers between Dubai and Vienna)
Full-Time Jobs
Total Vienna: 6,027 total full-time jobs (representing a 47 % in-
crease in comparison to 13 flights per week)
Total Austria: 7,444 total full-time jobs (representing a 47 % in-
crease in comparison to 13 flights per week)
2,618 direct full-time jobs & 1,488 indirect full-time jobs & 1,920
induced full-time jobs (Vienna) / 3,339 induced full-time jobs (Aus-
tria)
Economic activity Emirates flights:
Total Vienna: € 137 million (representing a 61 % increase in com-
parison to 13 flights per week)
Total Austria: € 168.4 million(representing a 61 % increase in com-
parison to 13 flights per week)
€ 60.5 million direct, € 33.9 million indirect and € 42.5 million
induced (Vienna) / € 74 million induced (Austria)
Tourism spending of non-resident visitors:
Total Vienna: € 388.7 million (representing a 43 % increase in com-
parison to 13 flights per week)
Total Austria: € 480 million (representing a 43 % increase in com-
parison to 13 flights per week)
€ 168.9 million direct, € 96.4 million indirect, € 123.4 million
induced (Vienna) / € 214.7 million induced (Austria)
€ 50.7 million of tourism spending in direct annual tax revenues for
Government (representing a 43 % increase in comparison to 13
flights per week)
viiiCargo Impacts
Due to additional flights of Emirates between Dubai and Vienna, the cargo capacity for
Austrian exports to Dubai and 6th Freedom destinations has and could increase as dis-
played in the following figure. Emirates facilitates foreign trade and opens new markets
for Austrian exporters with its regular operation between Vienna and Dubai and other 6th
Freedom destinations.
Additional flights guarantee an increase of the annual export rate of Austria and ensure
an increase of the awareness level of Austrian products and their image building world-
wide. With reference to industry experts and insiders, Austria as a nation exporting high-
quality products will definitely profit from increased flights of Emirates.
VIE = Vienna International Airport, DXB = Dubai International Airport, 6th Freedom = defined as the right of
transporting, via the home State of the carrier, traffic moving between two other States
Potential Impact on Austrian Airlines (as part of the Lufthansa Group)
Austrian Airlines or rather Lufthansa Group 1 will not be disadvantaged by an increase in
flights of Emirates on the Dubai-Vienna route, given that the additional services bring
more tourists and business travelers to Austria, who might interline with Austrian Airlines
to get to other Austrian destinations.
Emirates also operate to 53 destinations not directly served by Austrian Airlines or any
other carrier. Almost 80 % of Emirates connecting traffic is from markets not directly
served by Austrian Airlines. Austrian Airlines operates from Vienna to only six points to
which Emirates also carries connecting passengers via Dubai. On these points, Austrian
Airlines, respectively the Lufthansa Group has a dominant market position with an aver-
1
Austrian Airlines became a wholly-owned subsidiary of the Lufthansa Group in August 2009
ixage market share of 64%. Emirates, in contrast to that, has a moderate average share of
just 6% on the 6 points, hence poses little competitive threat to Austrian Airlines.
Qualitative Impacts
An abstract of qualitative benefits and potential factors of influence of Emirates Airline’s
operations in Austria are listed below:
Impacts on Austrian macro- and micro-economy
Emirates facilitate Austrian foreign trade, opening new markets for Austrian ex-
porters annual increase of export cargo volume
Potential of development and extension of economic and trade relationships
with UAE/other Middle East countries and 6th freedom destinations
Increase of international high-profile and image of Vienna airport and Austria
due to Emirates Airline operations and its exclusive service image
Emirates guarantee the delivery of the much needed intercontinental connectivity
at Vienna airport (due to the reduction of Austrian Airlines long haul operations in
the past). Increased connectivity implies many advantages for passengers as
time spent in transit is reduced and greater frequencies to destinations are offered,
which as a result allows for shorter waiting times and better targeting of departure
and arrival times
Dubai-Vienna connection creates a potential important infrastructure asset that gen-
erates benefits through attracting foreign direct investment and talent, ena-
bling business clusters, specialization and other spill-over impacts on the
Austrian economy’s productivity capacity
Upgrading of the Austrian business location due to regular connection to UAE/
other Middle Eastern countries
xImpacts on Austrian tourism
International image and marketing effects for the tourism destination Austria
and Vienna throughout Emirates worldwide network as part of its on-going multi-
million dollar investment in advertising
Additional Emirates flights to Austria encourage the national tourism strategy
“New ways in tourism” (Ministry of Economy, Family and Youth, 2010) to increase
the market share of international arrivals and overnights in Austria
Potential to increase the demand for holiday in Austria in the main source mar-
kets of Emirates (UAE, Middle East, India, Australasia)
Above-average tourism spending of Middle East tourists: € 450,- tourism
spending per day and 4.1 days of average length of stay in the Austrian tour-
ism industry (accommodation, restaurants, tourist infrastructure etc.) with high
value-added for other industries (retail trade, service industries etc.) in compari-
son to € 280,- average tourism spending of international tourists per day and 2.4
days of average length of stay
For the first time, in 2010, more guests from Middle East arrived in Austria
than in Switzerland as a result of the marketing efforts of Emirates and the Aus-
trian National Tourist Office the Middle East represents one of the currently fast-
est growing markets
Conclusion
The decision to increase Emirates services to Austria from 7 flights per week to 13
weekly flights in 2011/12 presents a significant economic stimulus to Austria’s economy,
according to this study. In addition to the Vienna International Airport as one of the ma-
jor profiteers of Emirates Airline, the Austrian tourism industry and all direct and indirect
involved industries (retail, transport service, tourism infrastructure etc.) benefit from the
increase of flights to Austria as well. Furthermore, the employment and tax impacts are
also stimulated in a positive way.
Regarding the possible increase from 13 flights to 21 flights in the future, the calculated
figures based on estimated data suggest a favorable prognosis for realization of a possi-
ble Emirates flight extension to Austria.
Apart from the quantified benefits of Emirates operations to Austria, various qualitative
benefits and arguments plead for an increase of daily connection from Dubai to Vienna.
xi1. CURRENT SITUATION AND SCOPE OF STUDY
1.1 INITIAL POSITION
Emirates Airline is one of the world’s largest independent airlines, operating a modern
fleet of over 150 long-haul aircraft to a global network of over 100 cities in 67 countries.
In 2004, Emirates Airline started daily operations at Vienna International Airport and has
carried more than 211,000 round trip passengers between Dubai and Vienna in 2010.
Passenger numbers and seat-load-factors are steadily rising on all flights also, including
those of Austrian Airlines.
Figure 1: Rising demand between Dubai and Vienna
Starting with the Summer 2011 schedule, Emirates operates 13 weekly flights between
Dubai and Vienna, meaning additional 6 weekly flights. A 14th weekly frequency is al-
ready planned to be added in the near future, meaning one additional flight to the exist-
ing 13 operations. For the purposes of this study, an Emirates triple daily operation has
also been modelled in terms of its economic impact.
Emirates contracted the Austrian company con.os tourismus.consulting to examine the
potential economic impact on Austria of additional flights as described above. Con.os
tourismus.consulting is specialized in the field of consulting and support of organizations,
projects and enterprises with a touristic focus. Con.os tourismus.consulting has its head-
quarters in Linz and Vienna, working with national and international clients from the tour-
ism and leisure industry.
11.2 AIM OF RESEARCH
The study’s aim is to examine Emirates impact based on three scenarios. Initially, the
economic impact of Emirates’ flights to Austria from 2004/2005 onwards was analyzed on
the basis of the 7 weekly flights. Using data provided by Emirates and statistics from
sources such as Statistics Austria, Austrian National Tourist Office and the Viennese Tour-
ist Board following aspects were analyzed:
Direct economic activity of Emirates operating in Austria
Direct economic activity of non-resident visitors in Austria
Relative gross domestic product generated in Austria
Job creating and maintaining effects (full-time equivalent employees and in-
come/wages)
Tax impact
Cargo services
Qualitative impacts of Emirates flights
In addition to the above mentioned aspects, a further analysis based on the Summer
schedule 2011, including 13 weekly flights between Dubai and Vienna, was made and is
also supplemented by an additional 21 weekly flights scenario. Estimated numbers pro-
vided by Emirates as well as the numbers calculated in the first part of the study served
as a basis for the analysis of the economic impacts of 13 and 21 weekly services of Emir-
ates between Dubai and Vienna.
1.3 METHODOLOGY AND LIMITATIONS
The study comprises primary research based on secondary data, which was provided by
Emirates and by other external sources to con.os.
The study relies on the following data provided by Emirates:
Number of incoming and outgoing passengers including seat-load factors from
2004 to 2010 between Dubai and Vienna including forecasts for 13 respectively 21
weekly flights
Average expenditure of Emirates for operating at Vienna International Airport
Cargo data – exports from Vienna International Airport
Passenger booking information between Dubai and Vienna
Further to the data provided by Emirates, con.os utilized the latest available data from
following sources:
Statistics Austria – a Tourism Satellite Account 2000-2011
Austrian National Tourist Office – statistics on tourist spends in Austria
2 Vienna Tourist Board – statistics on tourist spends in Vienna and distribution of
guests on provinces in Austria
Due to data limitations in terms of missing statistics some numbers had to be modeled
from a number of sources using an agreed set of assumptions based on conversations
with Emirates and using industry norms. It is important to note that statistical variation
in customer booking behaviors will influence the representativeness of the estimates.
Nevertheless, con.os has taken every effort to ensure the study results are realistic and
that the overall margin of error is small and will not materially affect the results of eco-
nomic impact analysis derived from these assumptions.
1.4 CHAPTER OVERVIEW
Chapter two provides an overview on source markets of Emirates for the Dubai-Vienna
route, analyzing the potential impact of additional Emirates flights to Vienna on other
carriers, as well as on Austrian domestic air traffic.
Chapter three describes the methodology applied for conducting the economic impact
study.
Chapter four is dedicated to the economic impact analysis associated with Emirates Air-
line operating in Austria. Within this chapter three different “scenarios” are presented
and discussed, namely a seven, thirteen and twenty-one weekly flight scenario on the
Dubai-Vienna route. Furthermore, additional information in terms of potential cargo ca-
pacities is provided.
Chapter five deals with the economic impact analysis of incoming passengers travelling
with Emirates to Austria, providing again numbers for seven, thirteen and twenty-one
weekly flights to Vienna.
Chapter six provides a summary of the economic impact analyses presented in the previ-
ous two chapters.
Chapter seven aims at illustrating the qualitative benefits for different stakeholders of a
greater frequency of Emirates flights on the Vienna-Dubai route, focusing on impacts on
the Austrian macro- and micro economy and on Austrian tourism.
In the appendices a glossary of terms used in this report, as well as additional informa-
tion concerning the economic impact associated with Emirates and non-resident visitor
spending will be given.
32. IMPACTS OF EMIRATES’ FLIGHTS ON VIENNA/
AUSTRIA
2.1 SOURCE MARKET ANALYSIS
Emirates Airlines, as a network carrier, offers connections via its Dubai hub between Vi-
enna and various markets in the Middle East, Africa, Asia and Australasia. By operating
to 53 destinations in those markets which are not directly served by Austrian Airlines or
any other carriers, Emirates facilitates Vienna’s accessibility. As a matter of fact, almost
80% of Emirates connecting traffic is from markets not directly served by Austrian Air-
lines. Only six points to which Emirates also carries connecting passengers via Dubai are
operated directly from Vienna by Austrian Airlines.
Emirates’ has carried more than 215,000 passengers between Dubai and Vienna in the
period of April 2010 – March 2011. About 37% of them were Third or Fourth Freedom
passengers. 63% of all passengers on this route were Sixth Freedom Passengers.
Total Traffic between Dubai and Vienna
215,874 100%
April 2010- March 2011
3rd/4th Freedom traffic 79,685 37%
6th Freedom traffic 136,189 63%
Chart 1: Total Traffic on DXB-VIE-DXB route in numbers and percentiles in 2010/11
Figure 2 shows the different source markets of the total number of passengers between
Dubai and Vienna, based on point-of-sale data. It can be concluded that in addition to
Europe, the Far East and Australia/NZ with 19%, Middle East with 13% and South Asia
with a share of 5% are all major source markets for the Vienna-Dubai-Vienna route.
Hence, Emirates provides an important connection between these markets and Vienna.
4Figure 2: Source market analysis of traffic between Dubai and Vienna based on 2010/11 data
2.2 POTENTIAL IMPACT OF ADDITIONAL EMIRATES FLIGHTS
ON OTHER CARRIERS
2.2.1 Relevant International Services by Austrian Airlines
The route between Dubai and Vienna is not only operated by Emirates, but by Austrian
Airlines as well. Basis of these operations are the air services arrangements between the
UAE and Austria.
Emirates’ operates to 53 destinations that are not directly served from Vienna by Aus-
trian Airlines or any other carrier in 2010. As already pointed out in section 2.1, almost
80% of Emirates connecting traffic to or from Vienna is from markets not served by Aus-
trian Airlines directly. Austrian Airlines operates from Vienna to only six points to which
Emirates also carries connecting passengers via Dubai. Those points are:
Bangkok
Beijing
Delhi
Mumbai
Tehran
Tokyo
52.2.2 Market Shares
Figure 3 shows the average market shares of different airlines on the 6 common points of
Emirates and Austrian Airlines listed in section 2.2.1. It can be concluded that Austrian
Airlines enjoys a dominant position on the above listed points with an estimated average
market share of 58%, respectively 64% for the whole Lufthansa Group (incl. Austrian
Airlines, bmi, Lufthansa and Swiss). 2
Emirates, in contrast to that, has a moderate average share of just 6% on the 6 points,
hence poses little competitive threat to Austrian Airlines.
Figure 3: Average market shares on Austrian Airlines/ Emirates common points 2010
According to an analysis based on MIDT sourced from GDS booking data, Austrian Air-
lines sources a lot of passengers on the route between Dubai and Vienna from destina-
tions beyond Vienna in Europe and North America. About 76% of total passenger book-
ings of Austrian Airlines are such transfer passengers, destined for Dubai and beyond,
carried via Vienna to points of which 24 cities are served directly by Emirates from Dubai.
Total Austrian Airlines Passenger Bookings
93,988 100%
between Dubai and Vienna in 2010
3rd/4th Freedom traffic 22,394 24%
6th Freedom traffic 71,594 76%
Chart 2: Total number of Austrian Airlines passenger bookings between Dubai and Vienna 2010
2
Data based on booking information from Global Distribution Systems for 2010.
6Chart 3 lists some of the 24 cities served by both, Emirates and Austrian Airlines as well
as the respective share of Austrian Airlines’ 6th Freedom passenger bookings to each of
the 24 destinations in 2010. 3
3
Data presented in the table is based on MIDT sourced from GDS booking data and does not rep-
resent actual flown traffic, but does reflect bookings which are an industry proxy.
7Austrian % of total 6th
Common points of Austrian Airlines
Airline Freedom passen-
& Emirates
Bookings gers (76%)
Prague 2,833 4.0%
Paris 2,757 3.9%
Amsterdam 1,353 1.9%
Rome 1,334 1.9%
London 1,279 1.8%
Milan 1,217 1.7%
Frankfurt 1,180 1.6%
Munich 1,094 1.5%
Hamburg 995 1.4%
Zurich 987 1.4%
Venice 969 1.4%
Dusseldorf 777 1.1%
Geneva 740 1.0%
Toronto 461 0.6%
Nice 407 0.6%
Other destinations 226 0.3%
Total common points (24) 18,609 26%
Total Austrian Airline 6th Freedom
71,594 100%
traffic all points
Chart 3: Share of common points of Austrian Airlines & Emirates out of Austrian Airlines’ transfer
passengers between Dubai and Vienna in 2010
82.2.3 Stimulation of Markets
There are two main market stimuli which an increased frequency of air services between
Vienna and Dubai may imply. Firstly, awareness of the additional services might be
raised by reducing airfares and secondly, consumers might chose to fly because of an
improvement of the air travel product in terms of scheduling or non-stop services.
An improved quality in air services such as greater flight frequencies, stimulate additional
demand, of course, depending to some degree on how good the improved services might
be. Especially business travelers are very sensitive in terms of time efficiency and sched-
uling and will be encouraged to travel if there are several options from which to choose
the optimal travel time.
With reference to Emirates increased flight frequency from 7 to 13 weekly flights and
even 21 weekly flights in future, consumers are offered additional opportunities to travel
and to best match their business schedules with overall trip duration.
Furthermore, additional services between Vienna and Dubai imply additional opportuni-
ties for consumers to travel to the 53 destinations offered by Emirates or vice versa for
travelers from markets in Asia, Australasia, the Middle East and Africa to come to Aus-
tria.
Frequency DXB-VIE-DXB DXB-VIE
Annual Pas- Seat-Load Non- Stimulated Non-
senger Factor % Residents Residents
7 weekly actual
211,659 82.3% 66,672 16,922
(2010)
13 weekly actual +
312,463 74.6% 98,426 30,736
estimated
21 weekly esti-
444,311 72.1% 139,958 72,268
mated
Chart 4: Estimated new traffic from additional Emirates air services 4
Numbers shown in Chart 4 are based on point-of-sale data, which served as a basis for
estimating stimulation and forecasting the number of new non-resident visitors to Austria
per annum. The increase in Emirates’ 7 weekly services on the Vienna-Dubai route to 13
weekly air services will probably result in 30,736 new non-resident visitors to Austria.
Moreover, if Emirates’ operated 21 weekly services an estimated number of 72,268
stimulated non-resident visitors could come to Austria.
4
The number of non-resident visitors is equal to estimated 63 % of half the number of total annual
passengers.
92.3 MIDDLE EAST- A GROWING HIGH POTENTIAL MARKET
FOR AUSTRIAN TOURISM
In addition to the presented effects on visitor income to Austria, of course, a greater fre-
quency in air services between Vienna and Dubai could have effects on Austrian domestic
air traffic as well. Taking high spending guests from the Middle East, which make up
about 13% of all Emirates passengers coming to Austria, as an example it can be con-
cluded that even though about 38.5 % of visitors from the Middle East tend to stay in
Vienna, other provinces such as Salzburg or Tyrol attract many visitors as well. Assuming
that parts of the travelers visiting another province will decide to go by airplane, this
could have an effect on Austrian domestic air traffic, implying additional passengers trav-
elling from Vienna further to e.g. Salzburg or Innsbruck. An overview of the visitor distri-
bution of travelers from the Middle East in Austria in 2010 among Austrian provinces ac-
cording to the Austrian National Tourist Office is shown in chart 5.
Province In %
Burgenland 0.3
Carinthia 0.9
Lower Austria 0.8
Upper Austria 1.6
Salzburg 42.9
Styria 1.1
Tyrol 12.3
Vorarlberg 1.3
Vienna 38.5
Chart 5: Distribution of visitors from Middle East in 2010
Statistics show that visitors from the Middle East and especially from the UAE tend to
spend much more money on average during their stay in Austria than guests from other
countries do.
- Above-average tourism spending of Middle East tourists: € 450,- tourism
spending per day and 4.1 days of average length of stay in comparison to €
280,- average tourism spending of international tourist per day and 2.4 days of
average length of stay
Therefore, the Middle East represents a very important source market for the Austrian
tourism industry and is by the way one of the currently fastest growing markets. In
2010, for the first time, Austria received more guests from the Middle East than Switzer-
land, hence, efforts from the Austrian National Tourist Office and Emirates to market
Austria as a destination seem to bearing their first fruit.
102.4 CONNECTIVITY BENEFITS FOR AUSTRIA
Austria’s and especially Vienna’s strategic location in the heart of Europe enables travel-
lers to fly to many important destinations world wide. Emirates enriches the variety of
destinations that can be flown to from Vienna, as it offers services from Vienna to 53
destinations that are not directly served by Austrian Airlines or any other carrier in 2010,
and contributes therefore beneficially to the connectivity of Austria.
Increased connectivity implies many advantages for passengers as time spent in transit
is reduced and greater frequencies to destinations are offered, which as a result allows
for shorter waiting times and better targeting of departure and arrival times.
Furthermore, improvements in connectivity provide Austria-based companies greater
access to foreign markets and encourage export. The Austrian economy heavily depends
on its exports, given that according to the Austrian Federal Economic Chamber five out of
ten euros of all exporting companies in Austria are generated in foreign markets. Vice
versa, opening domestic markets for foreign competitors can also be an important factor
for an economy. Apart from further impetus through the free movement of investment
capital and workers between countries, greater access to a market may force domestic
firms to adopt international best practices in production and management methods or
may encourage innovation.
Research has shown that economies that have a greater connectivity, in relation to their
size, are prone to grow faster in the long run. Hence, an increased frequency of Emirates
flights between Dubai and Vienna will imply many benefits for the Austrian economy
based on an improvement of Austria’s connectivity.
113. THE METHODOLOGY FOR ECONOMIC IMPACT
ANALYSIS
3.1 INTRODUCTION
Economic impact analysis examines the effect of a policy, program, project, activity or
event on the economy of a given area. The area can range from a neighborhood to the
entire globe. Economic impact is usually measured in terms of changes in economic
growth (output or value added) and associated changes in full-time jobs (full-time
equivalents - FTEs) and income (wages).
These measures can be useful in developing an appreciation of businesses, projects, in-
vestments and economic sectors.
3.2 ECONOMIC MULTIPLIERS
To measure the economic contribution of Emirates operations (7 weekly, 13 weekly and
21 weekly) the two most commonly used means of measurement were applied in this
study. The economic activity (=economic output) and Gross Domestic Product (GDP) are
two ratios which correspond to the gross revenues of goods or services produced by an
economic sector on the one hand (i.e. economic activity); however GDP measures only
value-added revenues. GDP removes the revenues to suppliers of intermediate goods
and services and only includes the contributions from labor and capital.
The investigation of direct, indirect and induced economic activity and the GDP is chal-
lenging and would require an extensive primary data collection including thousands of
data.
As an alternative the use of economic multipliers is a common measure to evaluate di-
rect, indirect and induced effects. Multipliers are derived from eco-
nomic/statistical/accounting models of the general economy. In this case, the economic
multipliers produced by Statistics Austria have been used to estimate the direct, indirect
and value-added data.
Choosing the appropriate set of multipliers to use must be exercised with great care. Fol-
lowing arguments and limitations should be mentioned in terms of prudence when using
input-output multipliers:
12It should be noted, that multiplier impacts must be interpreted with caution, as they pre-
sent the potential direct, indirect and induced impacts that can be achieved under a
given set of economic conditions.
133.3 ECONOMIC IMPACTS OF EMIRATES’ OPERATIONS
In Chapters four and five the economic impact of Emirates Airline operating in Aus-
tria and the economic impact of Emirates non-resident incoming passengers in
Austria are going to be displayed. The following chart illustrates the design of operation
scenarios and economic impact data.
Direct and indirect values presented in the table apply for both, Greater Vienna and Aus-
tria. However, concerning induced values it must be noted that results for Vienna and
Austria differ, ultimately, numbers result in different total values for Greater Vienna and
Austria.
The estimated economic impacts, differentiated between flight frequency and direct, indi-
rect and induced effects, are going to be generated within a period of approximately one
year.
Economic GDP Income/ Tax Im-
Operation Activity in Million FTEs 5 Wages pacts
in Million in Million in Million
Direct
Indirect
2010/11 Induced (Greater Vienna)
-- -- -- -- --
7-weekly Induced (Austria)
Total (Greater Vienna)
Total (Austria)
Direct
Indirect
2011/12 Induced (Greater Vienna)
-- -- -- -- --
13-weekly Induced (Austria)
Total (Greater Vienna)
Total (Austria)
Direct
Indirect
Induced (Greater Vienna)
21-weekly -- -- -- -- --
Induced (Austria)
Total (Greater Vienna)
Total (Austria)
Chart 6: Design of operation scenarios and economic impact data
5
= Full-Time-Equivalent Employment = Full-Time-Jobs
144. ECONOMIC IMPACTS ASSOCIATED WITH EMIRATES
AIRLINE OPERATING IN AUSTRIA
4.1 INTRODUCTION
This chapter presents the economic impacts associated with the operation of the passen-
ger and cargo service by Emirates Airline at the airport and the additional expenditures of
Emirates; for example:
Crew layover
Employee related costs
Office Accommodation
Advertising, promotion and sponsoring/events
Appendix A displays detailed information of Emirates expenditures.
The estimated economic impacts, differentiated between flight frequency and direct, indi-
rect and induced effects, are going to be generated within a period of approximately one
year.
4.2 OPERATION 7 TIMES WEEKLY, 2010/11, DUBAI-VIENNA
The seven times weekly operation lasted until the end of March 2011.
According to Emirates Airlines, 29 full-time equivalent workers to handle the operation of
passengers and cargo of seven weekly flights to Vienna International Airport were em-
ployed. The employment until March 2011 was made up of 15 office workers in sales,
finance and administration, serving the town office in Vienna; 9 full-time airport services
agents working out of VIE; 5 full-time employees involved in cargo operations in Vienna;
Chart 7 shows the economic impact of Emirates Airline’s seven weekly operations at Vi-
enna and Austria. The past operations at Vienna generated a total of 478 full-time jobs of
total employment, generating € 17.8 million in direct wages along with € 22.4 million in
total GDP and € 44.8 million in total economic activity at the airport.
For Austria it can be concluded that a total of 597 full-time jobs of total employment, €
22.0 million in direct wages along with € 27.1 million in total GDP and 55.1 in total eco-
nomic activity have been generated.
15Economic Ac- GDP Income/
Employment
tivity in Million Wages
(FTEs)
in Million in Million
direct € 19.8 € 10.3 203 6
€ 7.9
indirect € 11.1 € 5.7 114 € 4.4
induced
€ 13.9 € 6.4 161 € 5.6
(Greater Vienna)
induced
€ 24.2 € 11.1 280 € 9.7
(Austria)
Total
€ 44.8 € 22.4 478 € 17.8
(Greater Vienna)
Total
€ 55.1 € 27.1 597 € 22.0
(Austria)
Chart 7: Impact of 7 weekly services to Vienna, approx. in one year
4.3 OPERATION 13 TIMES WEEKLY, 2011/12, DUBAI-VIENNA
Since April 2011 the number of flights has increased from seven times weekly to 13
weekly operations by Emirates between Dubai and Vienna. According to our estimations
the total expenditure of Emirates Airline in Austria amounts to € 84.9 million for 2011/12
for Vienna as well as € 104.4 million for Austria. 13 services per week are estimated to
generate a total of 905 full-time jobs in Vienna and 1,130 in, generating € 33.8 million in
total wages in Vienna; respectively € 41.6 million in Austria. In terms of GDP, Emirates
operations generate € 42.4 million for Greater Vienna and € 51.4 million for Austria.
Economic Ac- GDP Income/
Employment
tivity in Million Wages
(FTEs)
in Million in Million
direct € 37.5 € 19.5 384 € 14.9
indirect € 21.0 € 10.7 216 € 8.3
induced
€ 26.4 € 12.1 305 € 10.6
(Greater Vienna)
induced
€ 45.9 € 21.1 530 € 18.4
(Austria)
Total
€ 84.9 € 42.4 905 € 33.8
(Greater Vienna)
Total
€ 104.4 € 51.4 1130 € 41.6
(Austria)
6
Number includes 29 full-time equivalent Emirates workers
16Chart 8: Impact of 13 weekly services to Vienna, approx. in one year
4.4 OPERATION 21 TIMES WEEKLY, DUBAI-VIENNA
Based on an average expenditure of € 2.88 million per flight per year, total expenditures
of Emirates Airline in Austria are being estimated with € 137.0 million for Vienna and €
168.4 for Austria.
On the basis of input-output multipliers, it can be concluded that 1,460 full-time jobs are
created in Vienna and 1,823 full-time jobs in Austria. € 54.5 million are generated in
wages in Vienna along with € 68.4 million in GDP. For Austria € 67.1 million are gener-
ated in total wages, respectively € 82.9 million in GDP.
Economic Ac- GDP Income/
Employment
tivity in Million Wages
(FTEs)
in Million in Million
direct € 60.5 € 31.5 620 € 24.0
indirect € 33.9 € 17.3 348 € 13.5
induced
€ 42.5 € 19.6 492 € 17.0
(Greater Vienna)
induced
€ 74.0 € 34.1 856 € 29.6
(Austria)
Total
€ 137.0 € 68.4 1,460 € 54.5
(Greater Vienna)
Total
€ 168.4 € 82.9 1,823 € 67.1
(Austria)
Chart 9: Impact of 21 weekly services to Vienna, approx. in one year
174.5 INCREMENTAL AND TOTAL ECONOMIC IMPACTS
This section summarizes the incremental and total economic impacts (direct, indirect &
induced) for all Emirates operations in Austria. (past, present, scenario)
Economic GDP Income/
Employment
Activity in Million Wages
(FTEs)
in Million in Million
2010/11 Total Vienna
€ 44.8 € 22.4 478 € 17.8
7-
weekly Total Austria € 55.1 € 27.1 597 € 22.0
€ 84.9 € 42.4 905 € 33.8
Total Vienna
+ incremental + € 40.1 + € 20.0 + 427 + € 16.0
2011/12
€ 104.4 € 51.4 1,130 € 41.6
13- Total Austria
+ incremental + € 49.3 + € 24.3 + 533 + € 19.6
weekly
Increase in % Increase of 90 % in comparison to 7-weekly flights
€ 137.0 € 68.4 1,460 € 54.5
Total Vienna
+ incremental + € 92.2 + € 46 + 982 + € 36.7
21- € 168.4 € 82.9 1,823 € 67.1
Total Austria
weekly + incremental + € 113.3 + € 55.8 + 1,226 + € 45.1
Increase in % Increase of 61 % in comparison to 13-weekly flights
Chart 10: Summary of direct impacts for 7, 13 and 21 weekly services to Vienna, approx. in one year
18Figure 4: Development of total economic impact of Emirates operations in Greater Vienna and Aus-
tria
Figure 5: By EK operations created full-time equivalent employment in Greater Vienna and Austria
194.6 INCREASED CARGO CAPACITY
The following figures summarize the potential cargo tonnages to be carried from Vienna
to Dubai and vice versa on each flight scenario. In addition to the increased number of
passengers and the direct and indirect economic impacts, the planned flight operations
will provide additional air cargo capacity between Austria and Dubai. 7
4.6.1 Export: Vienna – Dubai – 6th Freedom Destination
The average uplift per day per flight in kilograms is 11,450. Figure 6 summarizes the
past and estimated annual cargo volume to be carried on each flight operation between
Vienna, Dubai and the 6th freedom destinations.
Figure 6: Past and estimated annual export cargo volume on Vienna-Dubai-6th freedom route
According to Emirates the main export products from Vienna via Dubai to the final des-
tinations (mainly Australia, India, Africa, and Far East) are:
Glassware
High end electronic products (microchips, various CDs, DVDs and blue ray
discs)
Products of new technology (i.e. solar equipment)
Furniture
Firefighting equipment
Paper products
Foodstuff (bio-friendly products)
High end steel parts
7
Note: The impacts of the cargo exports themselves are not included in the analysis due to the
difficulty in quantifying the impact.
20 Railway equipment
Emirates faciliatates foreign trade and opens new markets for Austrian exporters with its
regular operation between Vienna and Dubai and other 6th freedom destinations.
Additional flights guarantee an increase of the annual export rate of Austria and ensure
an increase of the awareness level of Austrian products and their image building world-
wide. With reference to industry experts and insiders, Austria as a nation exporting high-
quality products will definitely profit from increased flights of Emirates.
4.6.2 Import: 6th Freedom Destination – Dubai – Vienna
The average uplift per day per flight is 10,400 kilograms. Figure 7 summarizes the past
and estimated annual cargo volume to be carried on each flight operation between 6th
freedom destinations via Dubai to Vienna.
Figure 7: Past and estimated annual export cargo volume on 6th freedom-Dubai-Vienna route
215. ECONOMIC IMPACTS OF EMIRATES INCOMING
PASSENGERS ON AUSTRIA
5.1 INTRODUCTION
This chapter presents the economic impact generated due to tourist spending by non-
resident visitors to Austria.
Appendix B discusses the methodology used in estimating non-resident visitor tourist
spending in Austria.
The estimated economic impacts, differentiated between flight frequency and direct, indi-
rect and induced effects, are going to be generated within a period of approximately one
year.
5.2 OPERATION 7 TIMES WEEKLY, 2010/11, DUBAI-VIENNA
Operations based on seven weekly flights lasted until the end of March 2011.
Chart 11 shows the economic impact of tourism spending generated by the 7 weekly
operations until March 2011.
In the given period 66,672 non-resident visitors were travelling to Austria on 7 weekly
operations, adjusted of the proportion of returning Austrian resident passengers. The
average tourist spend per day is € 380 (weighted average of tourist spending of Arab
tourists and international tourists) with an average length of stay of 3.2 days (weighted
average of Arab tourists and international tourists in Austria) 8 .
The total amount of direct economic activity is € 81.0 million, which generates 2,196 to-
tal full-time jobs in Vienna and 2,706 in Austria, € 75.3 million in direct wages in Vienna
and € 93.0 million in Austria along with € 94.9 million in direct GDP for Vienna and €
115.2 million for Austria. The ongoing direct taxation impact of tourism spending for the
7 weekly operations is € 24.3 million. 9
8
€ 380,- weighted average tourism spending per day = weight of average spending of Middle East
tourists and spending of international tourists (6th Freedom destinations)
9
30 % of non-resident visitor spendings affect tax impacts for the Austrian public sector
22Economic Ac- GDP Income/ Tax Im-
Employment
tivity in Million Wages pacts
(FTEs)
in Million in Million in Million
direct € 81.0 € 45.2 958 € 32.7 € 24.3
indirect € 46.2 € 22.2 547 € 18.7 --
induced
€ 59.7 € 27.5 691 € 23.9 --
(Greater Vienna)
induced
€ 103.9 € 47.8 1,201 € 41.6 --
(Austria)
Total
€ 186.9 € 94.9 2,196 € 75.3 --
(Greater Vienna)
Total
€ 231.1 € 115.2 2,706 € 93.0 --
(Austria)
Chart 11: Touristic impact of 7 weekly services to Vienna, approx. in one year
5.2.1 Economic Impact of Stimulated Non-resident Visitor
Spending in Austria
Considering the volume of non-residents that were stimulated by Emirates beginning
service in 2004/05, different empirical values of the industry sectors estimate that
roughly 25 % of the 66,672 non-resident visitors represent stimulated visitors, which
would be 16,668 stimulated non-resident visitors out of the total 66,672 non-resident
visitors.
The total amount of tourism spending associated with the stimulated visitors is € 47.3
million in Vienna and € 58.3 in Austria, assuming the same average amount of tourism
spending of € 380 and the same average length of stay (3.2 days).
Economic Ac- GDP Income/ Tax Im-
Employment
tivity in Million Wages pacts
(FTEs)
in Million in Million in Million
direct € 20.6 € 11.5 238 € 8.3 € 6.2
indirect € 11.8 € 5.6 136 € 4.7 --
induced
(Greater Vienna) € 14.9 € 6.9 173 € 6.0 --
induced
(Austria) € 26.0 € 12.0 300 € 10.4 --
Total
(Greater Vienna) € 47.3 € 24.0 547 € 18.9 --
Total
(Austria) € 58.3 € 29.1 675 € 23.4 --
23Chart 12: Touristic impact of stimulated non-resident visitor spending, approx. in one year
245.3 OPERATION 13 TIMES WEEKLY, 2011/12, DUBAI-VIENNA
Starting in April 2011 Emirates operates 13 flights per week.
Chart 13 shows the potential economic impact of tourism spending generated by 13
Emirates flights to Vienna per week. Increasing Emirates’ services generate additional
30,736 non-resident visitors to Austria, in addition to the 66,672 non-resident visitors
that have been travelling in 2010/11 (7 weekly flights). The average spend per trip is €
380 and the average length of stay is 3.2 days.
The total amount of additional tourism spending (total economic activity for Vienna) is €
85.9 million and € 105.9 million (total economic activity for Austria), which generate
1,009 total full-time jobs in Vienna and 1,240 in Austria. € 34.6 million (Greater Vienna)
and € 42.6 million (Austria) in wages along with € 43.6 million (Greater Vienna) and €
52.8 (Austria) in total GDP are generated as a result of thirteen weekly flights.
Economic Ac- GDP Income/ Tax Im-
Employment
tivity in Million Wages pacts
(FTEs)
in Million in Million in Million
direct € 37.4 € 20.9 442 € 15.1 € 11.2
indirect € 21.3 € 10.3 253 € 8.6 --
induced
(Greater Vienna) € 27.1 € 12.5 314 € 10.9 --
induced
(Austria) € 47.2 € 21.7 545 € 18.9 --
Total
(Greater Vienna) € 85.9 € 43.6 1,009 € 34.6 --
Total
(Austria) € 105.9 € 52.8 1,240 € 42.6 --
Chart 13: Incremental touristic impact of 13 weekly services to Vienna additional to 7 weekly
flights, approx. in one year
255.4 OPERATION 21 TIMES WEEKLY, DUBAI-VIENNA
Chart 14 shows the potential economic impact of tourism spending generated by triple
daily operations by Emirates to Vienna. Increasing services to three daily flights generate
additional 72,268 non-resident visitors to Austria in addition to the 66,672 visitors on 7
weekly operations. The average spend per trip remain at € 380 and the average length of
stay is 3.2 days.
The total amount of additional tourism spending (total economic activity) is € 201.8 mil-
lion for Vienna and € 248.9 million for Austria. This would generate additional 2,371 FTEs
in Vienna and 2,915 in Austria. € 81.3 million are generated in total wages in Greater
Vienna and € 100.2 in Austria along with € 102.5 million in total GDP for Vienna and €
124.2 million for Austria.
Economic Ac- GDP Income/ Tax Im-
Employment
tivity in Million Wages pacts
(FTEs)
in Million in Million in Million
direct € 87.9 € 49.0 1,040 € 35.5 € 26.4
indirect € 50.2 € 24.1 593 € 20.3 --
induced
(Greater Vienna) € 63.7 € 29.4 737 € 25.5 --
induced
(Austria) € 110.8 € 51.0 1,282 € 44.4 --
Total
(Greater Vienna) € 201.8 € 102.5 2,371 € 81.3 --
Total
(Austria) € 248.9 € 124.2 2,915 € 100.2 --
Chart 14: Estimated incremental touristic impact of 21 weekly services additional to 7 weekly
flights, approx. in one year
265.5 INCREMENTAL AND TOTAL ECONOMIC IMPACTS
This section summarizes the incremental and total economic impacts (direct, indirect &
induced) of non-resident tourism spending in Austria. (past, present, scenario).
Economic GDP Income/
Employment
Activity in Million Wages
(FTEs)
in Million in Million
2010/11 Total Vienna
€ 186.9 € 94.9 2,196 € 75.3
7-
weekly Total Austria € 231.1 € 115.2 2,706 € 93.0
€ 272.8 € 138.5 3,205 € 109.9
Total Vienna
+ incremental + € 85.9 + € 43.6 + 1,009 + € 34.6
2011/12
€ 337.0 € 168.0 3,946 € 135.6
13- Total Austria
+ incremental + € 105.9 + € 52.8 + 1,240 + € 42.6
weekly
Increase in % Increase of 46 % in comparison to 7-weekly flights
€ 388.7 € 197.4 4,567 € 156.6
Total Vienna
+ incremental + € 115.9 + € 58.9 + 1,362 + € 46.7
21- € 480.0 € 239.4 5,621 € 193.2
Total Austria
weekly + incremental + € 143 + € 71.4 + 1,675 + € 57.6
Increase in % Increase of 43 % in comparison to 13-weekly flights
Chart 15: Summary of touristic impacts of 7, 13 and 21 weekly services to Vienna, approx. in one
year
27You can also read
