As the economic impact report on the Istanbul New Airport lays out, the airport with an investment worth of 10.2 billion euros will create 225,000 jobs and make a TL 73 billion contribution to the Turkish economy by 2025
In its economic impact analysis report on Istanbul New Airport, the Center for Economics and Foreign Policy Studies (EDAM), has said the airport, will provide employment to as many as 225,000 people and make TL 73 billion ($20.40 billion) worth of contributions to Turkey's economy by 2025.
Construction work at the 10.2-billion-euro project is currently at 42 percent, with the first phase expected to be finished in 2018.
In the report, IGA Havalimanı İşletmesi A.Ş. CEO Hüseyin Keskin pointed out that the airport will make significant direct and indirect contributions to the economy, not only with its construction, but also with its entire structure.
TL 73 billion contribution to economy
As per the analysis report, Istanbul's new airport will provide employment to 225,000 people by 2025. The additional household income to be generated will go up to $4.4 billion and its contribution to the economy will reach around 4.9 percent of the national income (TL 73 billion).
"These are the best-case scenarios. But even in a worst-case scenario, we call this a "differentiated world scenario," the share of the airport in national income still reach 4.22 percent. Even under worst case scenarios, it would make serious contributions to the economy," IGA CEO Keskin said.
A hundred companies, 350 destinations
The report also indicates that the airport would provide opportunities for flights to more than 350 destinations for nearly 100 airline companies. According, to the best-case scenario, as of 2025, a total of 120 million passengers, including 35.5 million domestic flights and 84.9 million international flights, were expected to be operated in and out the airport. While passenger traffic expectation was 120 million passengers in 2025, 69 percent of passengers were expected to travel internationally while 31 percent were expected to travel on domestic routes.
Nearly half complete
The construction of the airport, with 23,000 people working three shifts, is nearly half finished (42 percent). After constructions were shut down for 19 days due to heavy winter weather this year, work resumed at an accelerated pace in order to recover the lost time. In June, an additional 7,000 people will be hired, taking the total work force to 30,000 and in the first quarter of 2018, the first phase of the airport will go into service.
Covering 1.4 percent of Istanbul
Compared to other airports, Istanbul New Airport will surpass the Netherlands' Schipol and France's Charles de Gaulle, which leads in terms of contribution to national income. Experts said that while, for instance, Schipol Airport covers 1.1 percent of Amsterdam, Istanbul New Airport, once completed, would cover 1.4 percent of the city, which will of course create a new ecosystem, social space and demography in this region.
The New Airport's contribution to Turkey's Gross National Product (GNP) would vary between 4.2 percent and 4.9 percent, in the worst- and best-case scenarios, in correspondence to its ambitious size.
In comparison, Schiphol airport, which represents more than 90 percent of the Dutch aviation sector, comprises about three percent of the Dutch economy. And given the fact that the aviation sector constitutes 3.4 percent of global gross national product, and those working in the aviation sector account for about 4 percent of Netherlands' active labor force, the figures projected for Istanbul New Airport are quite realistic.
This is an extremely important and non-negligible figure for a country like Turkey, because economic growth here depends on the development of industry and trade, as it adopted an export-based growth model.
Meanwhile, the withdrawal of Dutch company Northern Forests Defense's (KOS) from the project "on the grounds of the ecosystem" has been short-lived, as the company, working on baggage handling, continued its work without interruption.
Transport, Maritime Affairs and Communications Minister Ahmet Arslan also criticized KOS' false statements on social media and in the press, aimed at creating a negative image.
Pointing out that the Dutch company has continued its work, Minister Arslan said, "A large number of foreign companies are knocking on the IGA's door every day to become part of the project."