IATA expects robust growth of air travellers in Middle East

Business Tuesday 24/October/2017 16:49 PM
By: Times News Service
IATA expects robust growth of air travellers in Middle East

Muscat: Air traveller traffic in the Middle East will grow strongly by 5 per cent and will see an extra 322 million passengers a year on routes to, from and within the region by 2036.
The total market size will be 517 million passengers, a latest report from IATA reveals.
The International Air Transport Association (IATA) expects 7.8 billion passengers to travel in 2036, a near double the 4 billion air travellers expected to fly this year. The prediction is based on a 3.6 per cent average Compound Annual Growth Rate (CAGR) noted in the release of the latest update to the association’s 20-Year Air Passenger Forecast.
"All indicators lead to growing demand for global connectivity. The world needs to prepare for a doubling of passengers in the next 20 years. It’s fantastic news for innovation and prosperity, which is driven by air links. It is also a huge challenge for governments and industry to ensure we can successfully meet this essential demand," said Alexandre de Juniac, IATA’s director general and chief executive officer.
Eastward shift
The biggest driver of demand will be the Asia-Pacific region. The region will be the source of more than half the new passengers over the next two decades. The point at which China will displace the United States as the world’s largest aviation market (defined as traffic to, from and within the country) has moved two years closer since last year’s forecast.
IATA now anticipates this will occur around 2022, through a combination of slightly faster Chinese growth and slightly reduced growth in the United States. The United Kingdom will fall to fifth place, surpassed by India in 2025, and Indonesia in 2030. Thailand and Turkey will enter the top 10 largest markets, while France and Italy will fall in the rankings to 11th and 12th respectively.
Risks, opportunities
A number of risks in the forecast have been identified. Maximising the potential benefits of aviation growth will depend on current levels of trade liberalisation and visa facilitation being maintained. If trade protectionism and travel restrictions are put in place, the benefits of air connectivity will decline as growth could slow to 2.7 per cent, meaning 1.1 billion fewer passenger journeys annually in 2036. Conversely, if moves towards liberalisation increase, annual growth could be more than two percentage points faster, leading to a tripling in passengers over the next 20 years.
Planning for growth will require partnerships to be strengthened between the aviation industry, communities and governments to expand and modernise infrastructure. Runways, terminals, and ground access to airports will come under increasing strain. Innovative solutions to these challenges, as well as to the baggage and security processes, cargo handling, and other activities, will also be needed. And air traffic management needs urgent reform to cut delays, costs and emissions.
"Increasing demand will bring a significant infrastructure challenge. The solution does not lie in more complex processes or building bigger and bigger airports, but in harnessing the power of new technology to move activity off-airport, streamline processes and improve efficiency. Through partnerships within the industry and beyond, we are confident that sustainable solutions for continued growth can be found," said de Juniac.
The aviation industry has adopted a robust strategy to reduce its environmental impacts, particularly its carbon emissions.
"No industry has done more to meet its environmental obligations than aviation. Our tough targets to achieve carbon-neutral growth from 2020 and to cut our CO2 emissions to half-2005 levels by 2050 are backed by a comprehensive strategy,” he added.
“Our immediate aims are to work with governments to increase the production of sustainable aviation fuels, and to deliver air traffic management efficiencies, which promise significant emissions savings. And from 2020, a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will play a major role in meeting our carbon-neutral target," said de Juniac.