Statistics portal STATEC has published a report commissioned by the Luxembourg Airport regarding the airport's impact on the national economy, revealing a contribution of 5% to the Grand Duchy's GDP.
The publication took into account several ways in which economic impact can be measured, namely employment, wages and contribution to the Gross Domestic Product (GDP).
In terms of Direct Economic Impact, or the employment, wages and GDP associated with the operation and management of activities at Luxembourg Airport and closely connected businesses (ie the logistics operators, hotels in the vicinity and ground transportation), the airport contributed to the employment of 6,280 people, €380 million in wages and €590 million in GDP.
Cargo/Logistics primarily made up the employment (46% - 2,910 jobs), followed by Airline & Airline Services (23%, 1,420 jobs); Other Aviation Support (12%, 740 jobs); and Hotels (5%, 340 jobs). Ground Transport (150 jobs) and Retail/Food (120 jobs) were at the bottom at 2% each.
Indirectly, Luxembourg Airport was found linked to 4,030 jobs, €200 million in wages and €330 million in GDP as a result of its connections with down-stream indsutries that supply the goods and services to the companies which provide direct employment at Luxembourg Airport. Examples include companies taking care of inflight catering, construction companies perfoming works, travel agents booking flights and companies providing accounting and legal services.
A third factor, that of Induced Economic Impact, captures economic activity generated by the employees of firms directly or indirectly connected to the airport spending their wages in the national economy. This linked the airport to 4,560 people, €210 million in wages and €400 million, placing the results in between those for Direct and for Indirect Impact.
The report claimed that its Catalytic Economic Impact, determined by the economic value and employment that the airport facilitates for businesses in other setors of the economy, was largely due to the connectivity it offered to stakeholders. It plotted other EU Member States onto a graph (pictured below) to demonstrate that a country's connectedness holds a close correlation to its level of wealth, represented as GDP per capita. The airport was shown to contribute 2.5% to GDP through its Catalytic Impact, as well as €580 million in wages and 9,300 in employment.
With all these factors combined, Luxembourg Airport is tied to 24,170 employees, €1,370million in wages and €2,580m, or 5.0%, of GDP.
Graphs by Lux Airport / STATEC
