What every plane arriving at Auckland Airport is worth to New Zealand

Every international flight is bringing on average $1.4 million worth of value to New Zealand. Photo / Greg Bowker

International visitors arriving at Auckland Airport are New Zealand’s fourth-biggest foreign exchange earner.

Figures released at the NZ Airports Association annual hui show economic output through international arrivals was nearly $27 billion.

Every international flight is bringing on average $1.4 million worth of value to New Zealand.

The airport has 42 direct international connections catering to 9.3 million international travellers a year.

“Annually, we’re talking about $26.9b in international tourism value – now back to being our second biggest export earner – but also $26.6b in air cargo value,” said Auckland Airport chief customer officer Scott Tasker.

The North America market boomed last summer and is extremely valuable, with the economic impact of every flight higher than the average.

Seat capacity at 920,000 was up 36% on pre-Covid levels although nearly a third of them were empty on the US routes that were swamped with planes.

“We only need to look to last summer when our connectivity through to North America was at an all-time high. That increase in flights and routes generated more than 20% higher visitation from North Americans than pre-Covid, who spent $1.2b across the five-month summer flying season.”

Additional connectivity to North America also created 9% more cargo capacity resulting in a 26% increase in exports, with the value of those exports up by nearly 80%.

“A daily widebody flying between Auckland and North America will enable more than $150m of international visitor spend and $500m of bilateral air cargo trade across the course of a year.”

The airport is in the midst of a multibillion-dollar infrastructure upgrade and has faced pushback from airlines on how much it is costing. The airport has commissioned work by EY which found about 25,000 jobs are supported across the airport precinct by the airport company’s operations in what is the city’s second-biggest employment precinct.

The study found the 8.5 million domestic passenger movements a year generated $3.6b in economic activity to the regions and supported nearly 60,000 jobs.

By 2032 it is forecast there will be 11.9m domestic passenger movements and regional spending as a result will increase to $5.7b.

“We’ve tracked the economic impact of our operations, which show the international and domestic connections have a meaningful effect on the country’s fortunes, an impact that will grow as we work to increase capacity,” said Tasker.

“We’re a long way from many of our key markets, but the fast, efficient, reliable connectivity provided by aviation, including the network of regional airports, brings those markets much closer for businesses big and small, right out into New Zealand’s heartland.”

It is estimated air cargo growth will result in exports increasing 54% by 2032 reaching $41b.

“When people think of aviation, a huge, industrial trade port won’t be the first thing that comes to mind, but Auckland Airport is ranked third behind Port of Auckland and Port of Tauranga in terms of the value of trade carried. And there’s a genuine multiplier effect on regional and national economies from the connectivity we provide,” Tasker said.

Foreign nationals comprise 53% of international travel movements through Auckland Airport, with 47% outbound New Zealand tourist, family and business travellers.

Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.