NEWS ROUND-UP CDFG wins 10-year DF Daxing contract

a new source of power for the country’s development. “It is a comprehensive transportation hub

for the Beijing-Tianjin-Hebei region that supports the construction of the Xiong’an New District.” Chen continued by paying gratitude

China Duty Free Group (CDFG) has collected a 10-year duty free contract to operate two duty free concessions at Beijing Daxing International Airport, which is earmarked to open later this year. The airport’s tendering agency confirmed

the winning bid in a notice on 13 March for the liquor, tobacco and food, and fashion and beauty operations. In a statement obtained by TRBusiness,

Charles Chen, President, CDFG thanked Capital International Airport Group for its trust and recognition in CDFG’s winning bid. “Daxing International Airport is the new

capital of Beijing,” he says. “Positioned as a large international aviation hub, it is

towards supportive domestic and foreign brands ‘who have been paying attention to the development of China’s tax free industry’. CDFG’s win further entrenches its

position in China’s burgeoning duty free and tax free market and bolsters an already expansive airport presence. This includes Beijing Capital International

Terminals 2 and 3; Shanghai Pudong and Hongqiao (CDFG/Sunrise Duty Free); Guangzhou Baiyun Terminals 1 and 2; Macau; and Hong Kong International Airport (CDF-Lagardère) among others. It also operates offshore duty free shops

in Hainan at Sanya, Haikou and Bo’ao. The company has made no secret

of its desire to expand across all duty free channels. CDFG announced plans during the

Cruise operators flag huge potential in China

The massive potential of the cruise market in Asia Pacific was once again emphasised at the China’s Century Conference in Hainan last month, where it was revealed that 10.4% of the world’s cruise passengers originate from the Asia Pacific region, of which 60% are Chinese. However, only 0.2% of China’s 1.4bn

population currently take cruises, highlighting the opportunity for increasing penetration in the region. By 2020, China’s Ministry of Transport

expects the number of Chinese cruise travellers to reach 4.5m. More and more Chinese tourists are opting to cruise to destinations in Asia, and capacity is growing rapidly to meet the demand.

Rajshree Dugar, Associate Director, Corporate Strategy & Business Development Heinemann Asia Pacific Pte Ltd addressed the quirks of the cruise retail business on stage at the China’s Century Conference in Hainan last month, pointing out that shorter cruise trips were needed in this region in order to cater to both millennials and Generation Z customers.

TFWA China’s Century Conference to open new downtown stores in Beijing, Macau, Shanghai, Dalian, Qingdao and Xiamen. A CDFG source told TRBusiness the

Beijing store will unveil first as part of a phased opening.

Fraport’s retail hit by FX rates & congestion

Various factors including an increase in lower-spending passengers and the devaluation of numerous currencies (against the euro), impacted retail revenue registered by Frankfurt Airport operator, Fraport AG in 2018. Retail revenue increased nominally

by +€0.8m but net retail revenue per passenger plunged by 7.4% to €3.12, down from €3.37 in 2017. In contrast, the airport posted higher parking revenue (+€8.3m). “Influences on retail revenue included

in particular the above-average growth in passenger numbers on European routes, where passengers tend to spend less, as well as capacity bottlenecks at the terminals,” says Fraport AG. “In addition, the devaluation of various

currencies compared to the euro led to a loss of purchasing power.” Retail & Real Estate revenue as a whole

declined by -2.8% in 2018 to €507.2m, due to significantly lower proceeds from sale of land.

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