Auckland Airport has emerged as a pivotal driver of New Zealand’s economic success, with aviation infrastructure investments expected to deliver substantial benefits. According to an economic analysis by consultants EY, these enhancements could increase the airport’s contribution to the national economy from NZ$35.1 billion currently to NZ$54.9 billion by 2032.
The airport’s Chief Customer Officer, Scott Tasker, emphasized the critical role these developments play in fostering growth across New Zealand. “Each international flight generates approximately NZ$1.4 million in economic value,” Tasker stated. He added that international tourism, now the country’s second-largest export sector, contributes NZ$26.9 billion annually, complemented by NZ$26.6 billion from air cargo operations.
Beyond international travel, Auckland Airport supports approximately 25,000 jobs across its precinct, contributing NZ$1.4 billion in economic impact. The airport transports exports from New Zealand to over 190 countries and territories, including major markets like Australia, China, the United States, Japan, the United Kingdom, and the European Union, extending its influence nationwide.
Expanding Aviation’s Reach
Tasker highlighted the airport’s role as a significant trade hub, ranking third in trade value behind the Port of Auckland and Port of Tauranga. He noted, “The connectivity provided by Auckland Airport creates a multiplier effect, enhancing both regional and national economies.”
Efforts to expand capacity over the next five years are expected to bolster these contributions. Aviation facilitates connectivity, reducing New Zealand’s geographic isolation and bringing key markets closer for businesses of all sizes. Investments made today will shape economic opportunities for decades, particularly as international travel rebounds.
This potential was evident during last summer’s record connectivity to North America. Increased flights and routes led to a 20% rise in visitation from North Americans compared to pre-pandemic levels, contributing NZ$1.2 billion in spending over five months. Additional routes also boosted cargo capacity by 9%, with exports increasing by 26% in volume and 80% in value.
Tasker explained that a daily widebody aircraft flying between Auckland and North America enables more than NZ$150 million in international visitor spending and NZ$500 million in bilateral air cargo trade annually.
Comprehensive Economic Impact
The EY analysis underscores Auckland Airport’s role in supporting New Zealand’s economic aspirations. Aviation is integral to the ambitions of Kiwi businesses, aiding exporters from small enterprises to well-established firms. Investments in capacity and infrastructure ensure sustained trade opportunities and economic growth.
Currently, the airport precinct employs over 25,000 individuals full-time across more than 250 businesses. These operations generate NZ$1.4 billion in direct economic output and support 100,700 jobs across Auckland and New Zealand, encompassing trade and tourism sectors.
Growth Projections
Future investment in domestic travel infrastructure is expected to complement international operations. EY projects an annual economic output of NZ$43.9 billion from international travelers and NZ$9.5 billion from domestic travel by 2032. Presently, domestic tourism contributes NZ$6.8 billion to the economy, while international tourism generates an additional NZ$3.5 billion, distributed mainly across Christchurch (26%), Wellington (22%), Queenstown (12%), Dunedin (6%), and Napier (6%).
Each international landing contributes an estimated NZ$1.4 million in economic value, highlighting the importance of international connectivity. Foreign nationals account for 53% of international travel through Auckland Airport, with the remaining 47% comprising outbound New Zealand travelers, including tourists, families, and business professionals.
Preparing for the future
Tasker emphasized that Auckland Airport’s ongoing investment strategy aims to unlock future growth potential and create trade opportunities. “The energy and activity around Auckland Airport reflect its role in driving New Zealand’s economic success. The decisions we make today will ensure capacity for decades to come, benefiting all New Zealanders.”
Auckland Airport’s extensive infrastructure projects and strategic vision position it as a cornerstone of New Zealand’s economic landscape, connecting the country to global markets and fostering growth across industries.
