As a global hub, we don't just respond to local growth – we help to drive it. Toronto Pearson is an engine of the regional and national economies, creating employment, enabling development and contributing significantly to expanding GDP. When people and goods get where they need to go, the whole economy moves better.
Giving the Economy a Lift
Our airport is a major contributor to Ontario’s economy. According to a 2016 study commissioned by the GTAA, Toronto Pearson generates about $42 billion in economic activity annually, or 6.3 per cent of provincial GDP. What’s more, as Canada’s largest airport, we also have a significant national impact. In part this is because the commercial and financial heartland of Ontario accounts for about two-fifths of overall Canadian GDP. At the same time, businesses across the country depend on the connectivity we provide. Whether it’s farmers and fishers exporting their harvests to emerging markets, high-tech companies arranging manufacturing overseas or tourist destinations attracting visitors from abroad, all of Canada depends on our global hub airport to drive revenues and growth.
The importance of air connectivity as both an indicator and a driver of growth is evidenced by the fact that passenger traffic at Toronto Pearson grew at more than double the rate of Canadian GDP between 2006 and 2016. Across the region, and especially in the GTA, average annual household spending on air travel has also been rising, even as the real cost of airfares has declined – a consumer trend that correlates to higher incomes, as well as education levels.
When the economy is robust, people fly more – and vice versa.
Services in Flight
Ontario’s service sector – led by business and financial service providers, professional and technical firms, and arts and culture organizations – now accounts for about 80 per cent of the provincial economy. The sector has generated significant new employment over the past decade, even as the proportion of jobs related to goods production has fallen from 25 per cent to 20 per cent.
How does this affect Toronto Pearson? Studies show that the service sector, compared to the goods sector, spends about 23 per cent more on air transportation for each unit of output. So we can expect demand for business-related air travel to keep on growing steadily as the Ontario economy continues its competitive shift into areas such as research and innovation, health care and life sciences, specialized consulting services and higher education.
47.1M passengers passed through Toronto Pearson in 2017, an increase of 6.2 per cent over the previous year. Once again, international traffic accounted for much of that gain, rising 8.0 per cent as our airport continues to provide more convenient, frequent and far-reaching connections around the globe.
Photo: Air Canada/Brian Losito
Freight on Board
Every day, about $3 billion worth of goods travel into and out of the Toronto-Waterloo region, Canada’s busiest transportation corridor. Much of that volume is imports and exports, primarily shipped by ground to and from the United States. But a significant volume is transported by air. Nationally, about 23 per cent of non-U.S. goods shipments are via airfreight. And nearly half of all international air cargo leaving or entering Canada passes through Toronto Pearson.
Air cargo has grown increasingly important with the rise of global supply chains, particularly for high-value products. Worldwide, only about 3 per cent of goods shipments travel by air, but they represent 35 per cent of trade value. This trend is clear at our airport, where high-ticket imports and exports include cellphones, pharmaceuticals, auto and aircraft parts, and specialized agricultural products.
About two-thirds of our air cargo is carried in the bellies of passenger aircraft; this will increase as we’re served by wide-body planes with additional cargo capacity. Some of the freight we ship is trucked from the United States, while many of our inbound shipments carry on south of the border by road and rail. So as with the passenger side of our business, meeting the demand for efficient, reliable cargo services means playing a larger role in an integrated trade network that includes ground transport as well. As Canada boosts export activity to drive economic growth, we have a vital role to play – moving not just people, but products.
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Learn more about how we help our communities prosper and grow
Job creation. Better transit connections. Building stronger communities. And listening closely to our stakeholders as we balance competing priorities. It all comes down to getting everyone moving better.