China’s Aviation Industry and Economic Impact (2023)

The air transport sector significantly contributes to the economy of the People’s Republic of China, both directly and indirectly. According to 2023 data from Oxford Economics, 2.1 million people are directly employed in the aviation sector in China, generating an annual economic output of USD 53.7 billion. This amount represents 0.3% of the country’s total Gross Domestic Product (GDP).

With indirect impacts from the supply chain, employee spending, and tourism supported by aviation, the sector’s total economic contribution reaches USD 253.6 billion, employing 10.2 million people. Tourism alone contributes USD 19.8 billion to the economy, with 1.2 million people employed in the sector. International tourists’ spending is also estimated to contribute approximately USD 57 billion annually to China’s economy.

Social and Economic Contribution of Aviation

Aviation not only provides economic benefits but also significant social advantages. The sector contributes to the United Nations’ Sustainable Development Goals by facilitating access to education, healthcare, family connections, and cultural exchange. As transportation costs decrease, these benefits are reaching a broader population.

Over the past 50 years, global flight costs have decreased by 70%. In China, between 2011 and 2023, average ticket prices dropped by 45% in real terms. In 2023, it only took 3.7 days of work for the average citizen to afford a flight ticket. That year, there were 425 flights per 1,000 people, making air travel increasingly accessible.

The Role of Aviation in Trade and Investment

Air transport is at the center of global trade and investment flows. It plays a critical role in the growth of e-commerce, the formation of efficient supply chains, and the delivery of humanitarian aid during crises. In 2023, 16.8 million tons of air cargo were transported through Chinese airports, making China the world’s second-largest air cargo market.

China’s Air Network and Passenger Traffic

In 2023, 5% of all departures from China were international flights. A total of 30.8 million passengers traveled abroad, with the Asia-Pacific region accounting for 78% of this traffic, Europe at 12%, and North America at 5%.

The top 10 destinations included Hong Kong, Bangkok, Seoul, Singapore, Tokyo, Macau, Taipei, Kuala Lumpur, Osaka, and Phuket. The total number of passengers traveling to these destinations exceeded 30 million.

Connectivity Network and Economic Development

China has 249 airports hosting scheduled flights, with direct flight connections to 150 countries and regions. Daily, 543 international flights are operated, and in the last five years, 216 new routes have been launched.

Although the international connectivity index dropped by 47% in the Asia-Pacific region and 29% in other regions after the pandemic, the recovery process continues. Ten percent of passengers coming to China transfer to other domestic locations, while 86% complete their journey at the entry point.

In conclusion, air transport continues to be one of the growth engines of China’s economy. It contributes economically through exports and tourism revenues while strengthening the country’s global integration in terms of social welfare, regional development, and international connectivity.