Hong Kong airport records 'solid' retail performance, passenger numbers up

By

Benjamin Fitzgerald

Published
Jul 11, 2017

The Airport Authority Hong Kong has reported a marginal 1.1% increase in passengers to 70.5 million last fiscal ending March 2017, which saw revenues lift overall in areas such as retail concessions.

The AAHK said total revenue increased by 2.4% to HK$18.627m ($2.385m) on the back of more passengers and flights in and out of the airport, coupled with higher landing and parking charges, and a 'strong retail performance’.

Retail licences and advertising revenue made up 41.9% of total revenue, an increase of 3.7%, to HK$7.803m ($999.3m). The result was bolstered by higher revenues from improved licence terms, passenger growth at HKIA and new retail outlets in the Midfield Concourse, said management. Promotional retail campaigns throughout the year also added to the retail success.

The ‘I Love Hong Kong’ retail zone in the airport East Hall, which stocks big name and niche brands, was popular with travellers, said AAHK, as well as the airports retail convenience, including pop-ups.

“In 2016/17, we introduced an array of retail innovations, including pop-up stores showcasing new retail categories such as drones and aerial photography systems, and a distinctive beer truck where travellers can enjoy a cold one before their flight," AAHK management added:

Looking ahead, management said it is planning to feature a special concept to combine both shopping and fine dining.

Logistically, 14 new destinations were added in 2016/17 to HKIA’s extensive network including London Gatwick, New York LaGuardia, Portland, Madrid, Saipan, Ahmedabad (India), Chiang Rai (Thailand), Daegu (South Korea), Manado (Indonesia), Mandalay (Myanmar), Toowoomba (Australia), and Ishigaki, Takamatsu and Yonago (Japan).

Four new carriers also began operations, including Austrian Airlines, Bismillah Airlines, T’way Air and Vietjet Air.