Economic Impact Studies

​In the interest of helping States to have access to the significant socio-economic benefits of safe and reliable air transport, ICAO has launched the No Country Left Behind (NCLB) initiative. This initiative focuses the efforts of the Organization to assist States in implementing ICAO Standards and Recommended Practices (SARPs), which the main goal is to help ensure that SARPs implementation is harmonized globally.


These studies aim to provide a relevant and accurate representation of the economic impacts that various measures taken by States have on the aviation sector and on the overall national economy as well as to offer meaningful insights for civil aviation planners and relevant ministries on the returns on investments generated by the civil aviation sector. 

Economic impact of aviation reforms in Dominican Republic

 

A series of aviation reforms have taken place in Dominican Republic since 2006 to make aviation a priority sector in its national development planning and policies. To measure the impact of the policy changes on air traffic and its associated economic benefits in the country, a case study was conducted by ICAO in coordination with the Inter-American Development Bank. 

According to the study, an increase of approximately 23 to 27 per cent in the number of passengers between Dominican Republic and the United States were attributed to the reforms over the period 2006–2012; which in turn, resulted in a 15.5 per cent increase in GDP per capita (representing an increase of USD 607 in value) in Dominican Republic. Moreover, spending of foreign tourists from the United States in Dominican Republic increased from USD 836 million to USD 1.016 billion over the same period. 


The results of the study are intended to help attract further investments in the air transport sector, and identify potential policy options for States, i.e. whether they choose to focus on tourism, air cargo, or other sectors.

 

The report of the study is available for download here:




This case study can be used as a template to conduct other case studies to Small Islands Developing States (SIDS) in need of assistance in understanding the economic benefits of aviation to their economy. It also provides a powerful platform from which ICAO can continue its advocacy for strategic aviation development that is aligned with its policies, strategies, and standards and recommended practices.


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