The aviation industry’s economic footprint

Original title: Luftfartens økonomiske fodaftryk

Aviation contributes significantly to the Faroese economy. Aviation more than 200 highly productive jobs. When indirect and induced effects are included, aviation supports a total of 465 jobs and 2.6% of the Faroese GDP. This is a large economic contribution compared to other economies.

Aviation makes the Faroe Islands more accessible to the outside world. When the accessibility is increased, the business conditions are improved and investments, trade and tourism becomes more attractive in the Faroe Islands.  A higher degree of accessibility supports new business models and strengthens the existing businesses, e.g. the maritime industry and the tourism industry. Faroese businesses get a better access to new knowledge, technology, labor and investments from the surrounding world. This supports growth and wealth in the long run. An increased accessibility will also make it faster and cheaper for the Faroese to travel to foreign countries, working or on vacation, which has a large value for the Faroese citizens.

Aviation in the Faroe Islands has gone through a positive transformation, which has been supported by large public investments in and around the airport and in the tourism industry. There is, however, still a large potential for future growth. The growth rate in the number of passengers to and from the Faroe Islands has been only half that of Iceland during the last decade.

Aviation is not limited to the transportation of the 50,000 citizens of the Faroe Islands. With the right framework in place, there is no upper limit to the growth of the Faroese aviation and hence the economic footprint in the Faroese economy. We recommend that a common political strategy for aviation is developed. The objective of this strategy should be to increase the growth and create new jobs in aviation as well as in other industries that benefit from aviation.

The study is commissioned by Member of the Faroese Parliament Magni Arge