In this study, we estimate the economic benefit of Air Jamaica to Jamaica between 1995 and
2004. Specifically, we determine the economic benefit of Air Jamaica by estimating the
economic contribution of air transportation for the case where Air Jamaica does not exist and
then subtracting this value from the economic contribution of air transportation for the case
where Air Jamaica does exist. Thus the value we determine is the incremental contribution of Air
Jamaica to the Jamaican economy, i.e. the benefit that can only be attributed to the presence of
Air Jamaica.
Although there are many different ways in which airlines contribute to socioeconomic growth,
only two of these mechanisms are explored in this study: 1) the portion of airline revenues that
remain in Jamaica by virtue of the wages that are paid to residents of Jamaica, and the goods and
services that are purchased from companies in Jamaica; 2) the expenditures of foreign visitors.
Therefore, this study represents a conservative estimate of the benefit of Air Jamaica to the
Jamaican economy.
The results of our analysis indicate that the economic benefit of Air Jamaica to Jamaica between
1995 and 2004 economy was US5.491 Billion of which US1.830BillionwasadirectincrementalcontributiontotheeconomyandUS3.661 Billion is the corresponding indirect
incremental contribution