The Shannon Airport Group (SNNGroup) contributed almost €4 billion to Ireland’s economy last year, according to a new report that calls for a “level playing field” in aviation policy to help regional airports to flourish.
A report commissioned by SNNGroup and prepared by economic advisory firm Oxford Economics has highlighted that SNNGroup contributed €3.96 billion to Ireland’s GDP in 2022, both directly and indirectly, as well as supporting more than 20,300 jobs and contributing €643 million in tax revenues.
The economic impact study included the activities of the airport operator as well as firms operating in the Shannon Campus and the group’s other business parks in the midwest and southwest of Ireland.
The report found that Shannon Airport handled more than 1.5 million passengers in 2022, accommodating 376,000 international visitors whose spending contributed €146 million to the economy. The airport also facilitated goods imports and exports last year that contributed €1.36 billion to Irish GDP.
Neil McCullough, director at Oxford Economics and one of the report’s authors, said that while the SNNGroup makes a “major economic contribution” to the midwest region and Ireland, “Ireland’s aviation policy has to date failed to create a level playing field for Ireland’s regional airports to flourish”.
“Given that airports can drive regional growth, and that Project Ireland 2040 aims to rebalance growth across Ireland, there is a strong argument for providing State aid to Shannon Airport,” he said.
One of the recommendations of the report is for Government to review its decision to exclude larger regional airports (with annual passenger numbers greater than one million) from State aid within the regional airports programme.
The report also recommends that Ireland’s aviation policy be updated to help achieve long-term growth targets set out in Project Ireland 2040.
Mr McCullough warned that if a country has “excessive reliance” on a single airport, it can concentrate economic growth, and “any disruptions could cause a significant impact on the tourism sector, as well as the economy as a whole”.
The report called for Government and tourism boards to further promote Shannon Airport as the “gateway to the Wild Atlantic Way”, and highlight ease of travel through the airport as opposed to a more congestion-prone Dublin Airport.
Mary Considine, chief executive of SNNGroup, welcomes the report’s findings and recommendations, which she said “ultimately highlight what we have achieved and can further achieve with the right policies and supports in place”.
Speaking at the report launch in Shannon Airport on Friday, Minister of State for Transport, Jack Chambers said that Shannon “has a key role to play in rebalancing Ireland’s aviation landscape, alleviating the congestion at Dublin Airport and delivering balanced regional development for our country”.
“This report is a very useful reminder of the contribution which the Shannon Airport Group is making in terms of jobs and investment, and its recommendations give us a lot to consider,” he said.
