Province pushes for greater air access for Middle East airline
Emirates Airline presents study showing economic impact and new employment figures generated by flights to Vancouver
Andrew Petrozzi
British Columbia has turned up the heat on Transport Canada and the federal government’s Open Skies policy after a provincial cabinet minister stood with an airline executive to highlight the economic impact improved air access would have for the province.
B.C. Transportation Minister Shirley Bond and Emirates Airline’s senior vice-president of international affairs Andrew Parker revealed a new research report by InterVISTAS Consulting that says Emirates flights to Vancouver would bring approximately $118 million of economic benefits and create almost 700 jobs.
The projected increase would come from tourism spending, taxes and economic activity resulting from the proposed daily Dubai-Vancouver service. The report anticipates 50,968 new passengers on the route annually, as well as 312 new direct full-time jobs for a total of 689 new full-time jobs in Canada, including spin-off impacts. It anticipates $31.8 million in new direct economic activity at Vancouver International Airport, for a total of $76.6 million in total new economic activity including spin-off impacts.
It also projects $15.4 million in new direct tourism spending annually from non-resident visitors that would help generate a total of $33.5 million in new economic activity and add $8.3 million in new direct tax revenue.
“Emirates Airline is seeking federal government approval to progressively increase connections between Canada, the Middle East and Asia,” said Parker. “By growing leisure and business traffic, we can help to strengthen Canada’s tourism, trade and investment sectors – as well as increase traffic for domestic airlines.”
Bond was unavailable for comment by press time.
B.C. Premier Gordon Campbell, who was unable to attend the press conference, said in a statement: “This study identifies a great economic opportunity and highlights the need for more progress on Open Skies agreements to remove barriers to international tourism and commerce.”
Improving air access to B.C. through improved Open Skies agreements was highlighted in the recent provincial throne speech.
The InterVISTAS study also highlighted the creation of an additional 7,000 tonnes of cargo export capacity for Canadian goods between Vancouver, Dubai and other destinations. Currently, demand for cargo space for Canadian goods on Emirates flights exceeds capacity, with space routinely sold out months in advance, according to the airline.
“Emirates has been asking for additional landing rights in Canada for a decade, a request that is supported by the B.C. government,” said Parker. “This study shows that delays in approving the request are costing the B.C. economy hundreds of jobs and millions of dollars in new economic activity every year.”
InterVISTAS Consulting’s Michael Tretheway said: “Increased Emirates Airline services to Canada would provide a significant economic stimulus to tourism and trade in Canada. The increased air services would also create additional revenue for Canadian airports as no Canadian carrier currently offers these air services.”
The study also examined the economic impact of increasing service in Toronto and adding a Calgary-Dubai flight. The combined impact nationally, including B.C., would be $480 million in new economic activity and about 2,860 new jobs.
According to Transport Canada spokeswoman Maryse Durette, Transport Canada has just received the study and has not had time to review it.
“Officials continuously monitor the Canada-United Arab Emirates (UAE) market to ensure it is not underserved, as this would not be in the commercial interest of either country,” she said. “The Government of Canada greatly values the near-daily flights to Canada from the two airlines of the United Arab Emirates.”
She said that many Canadian or foreign carriers also offer one-stop service between Canada and the UAE, and that there is currently no shortage of seats to meet the demand.
“The rights under the current Canada- UAE air transport agreement meet the market demands of travellers whose origin or final destination is either Canada or the UAE,” she added. According to Durette, the agreement currently allows each carrier of the UAE – the other being Etihad Airways – to fly up to three times a week to Canada. Both carriers have decided to use all of their frequency allotment to serve Toronto only although they are permitted to fly to any other Canadian city.
But for Parker, the survey confirms that Emirates can act as a facilitator for economic growth in B.C. and Canada.
“Not only would the services create new jobs, increased tax revenue and tourism spending, but throughout our extensive global network, we would provide British Columbia with enhanced links between businesses and greater access to international capital and trade markets.” •
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