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Macroeconomic gains from a new non-stop route

The information below is a summary of a macroeconomic estimate of what an intercontinental non-stop air route contributes. Please note that the estimate only shows the effects on Swedish citizens.

Direct effects

  • A non-stop route between Stockholm and Atlanta is estimated to contribute macroeconomic revenue of about SEK 7 million through time savings for passengers.
  • A non-stop route means reduced environmental impact, since stopovers disappear. At the same time it means a certain increase in environmental impact. This is because a non-stop route, which is more attractive and convenient for passengers, generates greater demand and results in more departures. The net amount is a macroeconomic cost of about SEK 3 million per year.
  • The direct effects thus add up to a macroeconomic contribution of SEK 4 million per year.

Indirect effects

  • The most significant indirect effect is probably a change in the number of customers in the hospitality industry. Estimates show that expenditures in Sweden by inbound passengers will be larger than the “expenditure leakage” caused by outbound Swedish passengers.
  • The increase in expenditures by inbound passengers included in Swedish output totals an estimated SEK 10 million per year.