Melbourne Airport


Social & Economic Benefits

Social & Economic Benefits

Why Melbourne Airport is important
As Victoria's aviation gateway, Melbourne Airport makes a major contribution to the local, state and national economies as a critical transport infrastructure asset, an employment location and as a commercial activity centre.

As part of the Master Plan process, Melbourne Airport commissioned SGS Economics and Planning to undertake a Social and Economic Impact Assessment to assess the airport’s impact – currently and into the future.

How does Melbourne Airport benefit the community?
Melbourne Airport operates 24 hours a day, 7 days a week. This curfew–free status plays a critical role in the community – delivering an array of economic and social benefits to the local communities surrounding the airport, as well as to Victorians and southern Australia more generally. Through the airport, Melbourne is part of a global network of air services for passengers and freight.

Connecting communities
Airports play a vital role in connecting communities, people and markets. 98% of Victorian households surveyed identified connecting Melbourne with other Australian and international cities as a key benefit of the airport.

Supporting jobs
The daily operation of Melbourne Airport involves a multitude of jobs. The airport creates diverse employment opportunities related to aircraft operations and maintenance, passenger and freight handling, air traffic control and safety, transport and logistics,airport management, planning and construction, and various retail and commercial activities to service passengers, airport visitors and workers.

The number of jobs supported by Melbourne Airport has grown by 3.3 per cent a year between 2007 and 2011 to more than 14,300 jobs which are directly related to the airport’s operation. This rate of growth is significantly higher than the rate of growth for the host economy (municipalities within a 15km radius of the airport), and slightly higher than the rate of growth for the metropolitan area and Victoria as a whole. The airport’s employment figure is projected to grow to 23,000 by 2033.

Key employment sectors include transport, postal and warehousing, retail, accommodation and food services, manufacturing and wholesale trade.

Driving economic benefits to surrounding communities
Melbourne Airport’s operations support almost 10,000 jobs in the host economy. This is 67% of all people working in Melbourne Airport related roles. In Hume alone, the airport directly supports more than one in six jobs – making it a major source of local employment. The airport is responsible for 6% of the host economy Gross State Product (GSP).

The airport and associated businesses offer a diverse range of employment in outer suburban areas experiencing strong population growth not typically serviced by diverse business and employment opportunities. Proximity to Melbourne Airport also influences investment decisions by businesses that benefit from being close to but not actually located at the airport.

The airport is also an important facilitator of imports and exports for local businesses. Passenger growth through the airport also stimulates demand for other services in the local economy, including hospitality.  Local residents, recognise the positive benefits the airport provides, including: connecting Melbourne to other cities (98%); employment opportunities (87%) and the role of the airport as a freight hub (83%).

Driving economic benefits for all Victorians
In addition to its direct local economic benefit, Melbourne Airport’s contribution to Victoria’s Gross State Product is approximately $1.47 billion. Melbourne Airport indirectly supports 43,000  jobs in Victoria.

By 2033 the airport’s contribution to GSP is forecast to increase to $3.2 billion and supporting up to 72,000 jobs indirectly.

Regional & tourism development
Melbourne Airport’s curfew-free status ensures that Melbourne and southern Australia are connected to the world 24 hours a day.

Approximately, 7.9 million interstate and international visitors arrive in Melbourne each year through Melbourne Airport, providing an important economic stimulus through tourism related activities. These visitors spend nearly $8.3 billion annually in the Victorian economy – accounting for almost 50% of the total current tourism expenditure in Victoria.

Each international aircraft landing at Melbourne Airport contributes nearly $240,000 visitor spending in Victoria.

Curfew-free status
The ability of Melbourne Airport to operate without any capacity constraints and it’s curfew-free status provides significant benefit to the local, regional and state economies.

At present the curfew-free status of Melbourne Airport allows for the movement of an extra 2 million passengers a year and adds $590 million to the Victorian economy through visitor spending. By 2033, the value of the curfew-free status will increase to an additional 5 million passengers a year and an additional $1.3 billion in visitor spending.

Fact sheet: Why Melbourne Airport is important
Graphic: Melbourne Airport - Major contibutor to State and local economies