Kenya can add Sh7b to economy annually by opening her airspace

Kenya Tourism Board managing director Mureithi Ndegwa and Mombasa County Miss Tourism Tima Keila (left) hand over some flower roses to some of the one hundred and seventy tourists as they disembark from their chartered direct flight 'enter air' at the Moi International Airport from Holand on Saturday night, December 28, 2014. Another chartered direct flight from Check Republic also landed at the same airport with fifty tourists. [PHOTO BY GIDEON MAUNDU/STANDARD].

Kenya: Kenya stands to add Sh7 billion to the economy annually if it opens its air space by entering mutually beneficial international agreements.

International Air Transport Association (IATA) estimates that opening up airspace could result in about 16,000 jobs being created and a staggering Sh7 billion added to overall Gross Domestic Product (GDP).

"Kenya is likely to expand its labour market by creating 15,900 more jobs, boost GDP by Sh7 billion while 406,000 passengers will be increased to its routes," it says in a report titled "Transforming Intra-African Air Connectivity: The Economic Benefits of Implementing the Yamoussoukro Decision."

The liberalisation subject will be part of the main agenda of untapped market's significant opportunities to be discussed during a two day-meeting - Aviation Africa 2015 - to be graced by world's leading airlines, ministers and authorities later this week in Dubai.

African skies

To try and achieve the goal of open African skies, a pact was made in 2000 between 44 countries, known as the Yamoussoukro Decision. The decision was intended to allow a more liberal airspace arrangement, but to date it has still not been formally implemented.

Individual countries have run into difficulties transferring the Decision into their own domestic legislation, which has stalled the process – much to the frustration of African businesses.

According to Alan Peaford, the Dubai event organiser and summit Chairman the May 10 to 11, 2015 meeting will underscore the immense potential of the African aviation market.

Peaford said the Dubai forum has been established to forge a crucial dialogue among the aviation industry's leading stakeholders on the social, economic, and political benefits to be gained from wide-ranging improvements to the infrastructure in Africa. Aviation currently supports more than 6.9 million jobs and over $800 billion in GDP across African nations.

"If you look at the sheer potential of just a handful of African airlines, routes and airports, you realise just how enormous an impact Africa can have on the future of aviation, and moreover you can clearly see just how beneficial a progressive aviation industry can be for its socio-economic future," says Mr Peaford.

IATA, the global airlines association, says liberalising the air service will lead to increased air service levels and lower fares, which in turn stimulate additional traffic volumes.

Further, opening up the air transport will facilitate tourism, trade, investment and other sectors of the economy and boosts productivity, economic growth and increased employment, it adds.

Though Africa is home to 12 per cent of world's population, it accounts for less than 3 per cent of global air service market while potential five million passengers a year are denied the chance to travel because of restrictions.