The operationalisation of the Single African Air Transport Market (SAATM), a crucial continental agreement to improve air connectivity across borders, is becoming one step closer to reality with the piloting of the initiative in the East Africa Community (EAC).
For the EAC partner states, a fully operational SAATM is expected to result in an increase of 2,8 million passengers per year, USD267,1 million (R4,6bn) in airfare savings and a USD590 million (R10,2bn) increase in GDP.
“By addressing market access, it is estimated that frequencies on existing routes will increase, providing greater convenience and choice for tourists traveling by air to-from and within the region. On tourism for the EAC, the operationalisation of SAATM by the seven states will result in an increase of 759 200 tourist visits per annum and an increase of USD413,2 million (R7,1bn) in tourism spend,” said Maureen Kahonge, Senior Business Development Manager at the African Airlines Association (AFRAA).
Since the launch of the SAATM in 2018, 35 of 55 African Union states have signed the commitment, with 21 of these states agreeing to remove air service agreement restrictions hampering connectivity with other African countries. Of the 21 countries, 10 have implemented the resolution’s eight concrete measures, which aim to fully liberalise intra-African air transport services in terms of market access and the free exercise of third, fourth and fifth freedom air traffic rights for passenger and freight aviation.
The SAATM was one of the key focus areas of a landmark laboratory hosted at the AFRAA headquarters in Nairobi in July, where one the critical outcomes was the development of a roadmap to address the root challenges facing Africa’s air transport industry.
“One of the lab projects was the enhancement of collaboration between the tourism and aviation sectors, which have a symbiotic relationship. On average, over 60% of international tourists to Africa arrive by air. However, the volume of intra-Africa tourists travelling by air is low due to the limited intra-African connectivity and the high cost of air travel compared to other modes of transport,” Kahonge said.
Tourism associations call for faster implementation
Kahonge said one of the main challenges hampering the SAATM was government willingness to implement bilateral air service agreements.
“A continental study commissioned by the African Union reveals that out of 607 agreements, only 39% are compliant. The situation of non-compliant agreements continues to slow down implementation.”
Dr Sam Ikwaye, Secretary of Kenya’s Tourism Professionals Association, said tourism stakeholders had long been calling for improved access for airlines, particularly in terms of enabling direct flights to Mombasa International Airport (MBA).
“As tourism professionals and stake holders we experienced tough times accessioned by COVID-19 and news that some international airlines were not being allowed to fly directly to Mombasa was and remains very disturbing news for the tourism industry,” said Ikwaye, referring to the case of Turkish Airlines being forced to push flights to MBA to October 29, 2022, after being declined permission from the Kenya Civil Aviation Authority to start servicing the route in June.
Ikwaye said the tourism industry was hopeful the newly elected administration of Kenya, under President William Ruto, would accelerate the open skies policy.
“As an association, we feel that the outgoing administration’s failures to act on new initiatives was bordering on economic sabotage, towards the coastal region in particular. We hope the new administration will unlock our potential as a tourism and trading hub, including liberation and ease of access and use of national airports. Opening the skies to other airlines is pro-consumer, pro-competition and pro-growth.”
Inbound tourism will reap the benefits
Nils Heckscher, Director, Head of Africa at hospitality consulting company PKF Hospitality, agreed that an effectively implemented policy would have a multitude of benefits for inbound tourism.
“The resulting competition will increase frequencies, lead to better and more convenient connections and hopefully also have a positive impact on pricing. Our clients, hotels and the like, would benefit in that their properties are more easily accessed from a variety of source markets. If accessibility is too difficult, they will chose a different destination.”
Hecksher said African governments needed to move away from their ideas of preserving state-owned airlines, often at immense cost.
“There is often misguided self-preservation of government-owned airlines and unnecessary red tape. I believe lessons need to be learned from these constant failures.”
