Tourism supported by aviation contributes $124.9 million (approx.Rwf179.8 billion) to Rwanda’s GDP and employs 29,000 people, according to study findings by the International Air Transport Association (IATA), released on September 4, during the Aviation Africa Summit in Kigali.
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Dubbed “The Value of Air Transport to Rwanda,” the report, which covered the year 2023, indicates that there are different ways of measuring air transport’s impact on an economy.
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Two key indicators are the number of jobs and the contribution to GDP generated by the aviation sector, including airlines, airport operators and on-site businesses, air navigation service providers, and manufacturers.
In Rwanda, the study shows, at least 2,900 people are directly employed in aviation, generating $8.9 million, equal to 0.1% of total GDP.
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“Additional benefits are generated by the wider supply chain, employee spending, and tourism activities, contributing a total of $160.1 million to GDP and 42,000 jobs. Tourism supported by aviation contributes $124.9 million to the country’s GDP and employs 29,000 people,” reads part of the report.
International tourists to Rwanda, it says, are estimated to contribute $688 million annually to the economy through the purchase of goods and services from local businesses.
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“Aviation creates a range of social benefits and contributes significantly to the United Nations Sustainable Development Goals (SDGs). Air transport enhances access to education, connects friends and families, facilitates cultural exchange, and drives socio-economic development,” reads the report.
“Acting together, these forces enable a country to expand its productive potential, delivering long-term economic growth and supporting the reduction in poverty and improvement in living standards for all of the nation’s citizens.”
Passenger, cargo flows
Aviation plays a crucial role in, for example, enabling the development of dynamic and efficient supply chains, and in driving the growth of e-commerce.
The study highlights that 16,500 tonnes of air cargo were transported through airports in Rwanda in 2023, supporting the country’s total import and export volumes.
“A well-developed aviation network transforms lives and communities. By swiftly and safely connecting people in different cities, air transport generates benefits to consumers and the wider economy. It makes the world smaller, enriching lives and enhancing cultural diversity. In rural and remote areas, air transport provides an essential lifeline for the community, safeguarding access to healthcare, education, and often employment,” it adds.
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IATA found that international air traffic accounted for 95% of total origin-destination (O-D) departures for Rwanda in 2023, equal to 447,400 passenger departures. Africa is the largest international market for passenger flows from Rwanda, followed by Europe and North America.
Almost 249,800 passengers departed from Rwanda to another country in Africa (56% of the total), 92,800 to Europe (21%), and 47,600 to North America (11%), the study says.
The top 10 most popular city destinations from Rwanda, include Nairobi, Entebbe, Brussels, Johannesburg, Dubai, Lagos, Paris, Dar es Salaam, Bujumbura, and London.
“The extent of domestic and international connectivity is an enabler and an accelerator of both the generation and distribution of economic benefits. Since 2014, Rwanda’s international air connectivity index has increased by 23% within the Africa region and by 326% with all other regions. Understanding the nature of that connectivity is also important,” the IATA said.
For Rwanda, it added, 66% of passengers either finished their journey at the point of entry to the country or continued travelling using a different mode of transport. Thirty-four per cent of all passengers arriving in Rwanda from abroad continued their journey to a destination in another country.
RwandAir is looking to more than double its passenger numbers from just over 1 million in 2023/24 to more than 2.1 million by 2028/29, through an expanded fleet the current 14 aircraft to at least 21.
