ECONOMIC BENEFITS FROM AIR TRANSPORT IN BOLIVIA - IATA

Table 4: Bolivia Air Services: Economic Benefits
2001 2002 2003 2004 2005 2006
GDP Summary (US$m)
Direct 46 43 50 51 50 53
Indirect 47 43 48 48 51 53
Induced 23 22 25 26 25 26
Total 115 108 122 126 126 133
Employment Summary (jobs)
Direct 4,940 4,749 5,711 5,715 5,366 5,250
Indirect 11,009 12,807 14,617 14,329 14,471 14,158
Induced 9,056 8,706 10,471 10,478 9,838 9,625
Total 25,004 26,261 30,799 30,523 29,675 29,033
Wages Summary (US$m)
Direct 15 14 15 14 13 15
Indirect 17 15 16 15 15 17
Induced 8 8 9 8 7 8
Total 40 36 40 37 35 40
Tax Summary
Direct 9 8 8 8 8 10
Indirect 8 8 8 10 12 12
Induced 4 4 4 5 6 6
Total 21 20 20 23 26 27
Source: Oxford Economics
Air transport is highly capital intensive but nonetheless
remains a large employer. It also generates a number of
additional jobs in the supply chain and supports jobs in
other industries through the induced impacts it generates.
Air transport directly employs an estimated 5,250 people in
Bolivia, but supports a total of over 29,000 jobs within its
economy.
The jobs that are supported by air transport are typically
highly productive because of the high capital intensity of
the industry and because of the specialist skills required
in many job functions. Consequently, a large proportion
of the employment generated also has relatively higher
wages compared to many other sectors of the economy.
Air transport is estimated to support 0.6% of employment
within Bolivia but 1.3% of its wage income (see Table 5).
Air transport also makes a significant contribution to export
earnings, both directly through the activity of airlines and
indirectly through the facilitation of exports by other sectors
of the economy. It was estimated to generate $68 million
of exports in 2006, equivalent to 1.9% of Bolivia’s exports.
Its share of exports has declined slightly from 2.3% in 2003
even though the total amount of exports it generates has
increased. This reflects the impact of natural gas exports
on overall exports from Bolivia.
There is also a strong contribution towards taxation
and therefore, to supporting government spending
programmes. Direct payments of tax by the airline industry
are estimated to be $10 million in 2006. Adding indirect
and induced impacts generates a total contribution to
government tax revenues of $27 million, equivalent to
1.2% of Bolivia’s total tax revenues.
IATA Economics - www.iata.org/economics - ECONOMIC BENEFITS FROM AIR TRANSPORT IN BOLIVIA
October 2007
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