Crucial sector needs reforms.

Just how important is the air transportation sector to the Philippines?

The International Air Transport Association (IATA), the trade association of the world's airlines, revealed that airlines, airport operators, airport on-site enterprises such as restaurants and retail, aircraft manufacturers, and air navigation manufacturers, employ around 45,000 people in the country.

But in addition, by buying goods and services from local suppliers, the sector supported another 127,000 jobs. On top of this, the sector is estimated to support a further 37,000 jobs through the wages it pays its employees, some or all of which are subsequently spent on consumer goods and services. Meanwhile, foreign tourists arriving by air to the Philippines, who spend their money on the local economy, are estimated to support an additional 954,000 jobs. In total, around 1.2 million jobs are supported by air transport and tourists arriving by air, IATA said.

The same report noted that the air transport industry, including airlines and its supply chain, are estimated to support $2.7 billion of gross domestic product in the country. Spending by foreign tourists supports an additional $7.7 billion of the country's GDP, for a total of $10.4 billion. In total, IATA said that 3.4 percent of the country's GDP is supported by inputs of the air transport sector and foreign tourists arriving by air.

IATA added that the most important benefits from air transport go to passengers and shippers and the spillover impact on their business, noting that the value to passengers, shippers and the economy can be seen from the spending of foreign tourists and the value of exports.

It said that a key economic flow, stimulated by good air transport connections, is foreign direct investment, creating productive assets that will generate a long-term flow of GDP.

The report disclosed that Asia Pacific is the largest market for passenger flows to and from the Philippines, followed by the Middle East and North America.

The five international tourist arrivals in terms of all modes of transport by country of residence are Korea, China, US, Japan and Australia, while the top five busiest direct flight arrivals are Korea, Singapore, Hongkong, Japan and China. The five busiest air cargo routes are Hongkong, Korea, UAE, Chinese Taipei and Japan.

In highlighting the importance of the air transport sector to the country, IATA explained that air transport generates benefits to consumers and the wider...