Impact of the business aviation industry on the Maltese economy

Abstract

Aviation is a very large industry and lot of attention is directed towards the importance of commercial airlines and their impact on society whether from an economic, social or environmental aspect. However, there are other areas of aviation insufficiently researched. Based on the importance given to the aviation sector, future plans for further expansion and raised comments linking business aviation and Malta together; this research is analyzing the economic impact of this business aviation sector on the Maltese economy. The paper discusses the characteristics of the sector, users and advantages provided. This study is the first attempt to fill in the gap of this new phenomenon on the local level. The qualitative approach seeks to assess the current contribution of this sector and its economic impact on local economy by looking into different areas in form of direct, indirect and induced contribution, future plans or issues and looking into level of demand on the local scene. The information was obtained by following qualitative approach in form of interviews with seven stakeholders, by approaching the air operator certificate holders with a short questionnaire; and those who could provide relevant information. Results revealed that authorities are not yet aware of its economic impact and that there is no statistical data which would reveal the impact of this sector in terms of revenue generated, expenditure or level of demand. Therefore, it was recommended that the future research should focus on obtaining quantifiable data of direct, indirect and induced contribution which would provide estimates of the contribution. Moreover, it also suggests to further investigate the relation between the yachting industry and business aviation.