TOP 10 AIRPORTS: INTRODUCTION


China did not begin to see adverse effects to their revenues until the


Home to long-haul carrier Emirates, DXB registered 86.4 million passengers in 2019, down just 3% from 2018. But the 3% slide in passengers made trading conditions significantly more challenging for Dubai Duty Free, who against the odds was still able to exceed $2bn in sales once again in 2019.


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beginning of 2020, for Hong Kong Airport the trouble started well before January of this year. As extensively reported, ongoing


2019–20 Hong Kong protests were triggered in June of last year by the introduction of the ‘Fugitive Offenders amendment bill’ by the Hong Kong government. The bill was withdrawn in September, but demonstrations continue, although on a smaller scale since the Covid-19 pandemic. Flight cancellations and disruption


at HKIA in August 2019 resulted in dislocated passenger flows and delays, with knock-on effects to operations for Gebr. Heinemann, CDF-Lagardère and The Shilla Duty Free. However, the impacts to Hong Kong’s tourism industry (and therefore HKIA’s passenger traffic) were being felt a couple of months before this [see p39 for more details]. Settling in the middle of the Top


10 Airports table, London Heathrow (LHR) reported a flat year in terms of passenger traffic and retail sales


World’s Top 10 Airports Ranked By Retail Sales – 2019 Airport


Traffic (millions)


International departures 2019


(millions)* 1 2 3 4 5 6 Seoul Incheon Singapore Changi Dubai International Shanghai Pudong Beijing Capital London Heathrow 70.0 68.3 86.4 76.0 100.0 80.9 36.8 38.1 44.8 19.1 13.9 41.7


International departures forecast for 2020


(millions)* 8.1 (-77.9%) 8.3 (87.2%) 11.9 (-73.3%) 3.1 (-84.0% 2.5 (-82.3%) 11 (-73.6%)


$2.43bn: In 2018, Incheon International Airport reported sales of $2.43bn, up 2.7% year-on-year, while traffic climbed by 4.5% to reach 70m.


$2.06bn: Changi Airport revealed to TRBusiness exclusively that retail sales climbed by 2.1% in 2019 to reach at least S$2.86bn/$2.06bn. Traffic climbed by 4%.


$2.03bn: As the largest single airport duty free retailer, Dubai Duty Free registered total sales of $2.029bn, up just a fraction at +0.7% yoy, while total traffic actually declined by 3% to 86.4m in the same period.


$1.23bn: TRBusiness estimates that Shanghai Pudong Airport registered a 10% increase in duty free and duty paid sales in 2019, to reach around $1.23bn. This outpaced passenger traffic, which grew by 2.9%.


$1.07bn: TRBusiness estimates that duty free and duty paid sales combined grew around 5% to reach $1.07bn in 2019, while total traffic actually declined -1%.


$946m: Retail revenue rose marginally (+0.8%) to £722 m/$946m in the 12 months ending 31 December 2019. Growth was outstripped by a meagre rise (+1%) in passenger traffic to 80.9m, but intercontinental traffic climbed by 2.2%.


7 8 Paris Charles De Gaulle 76.2 Hong Kong International 60.9 35.6 40.5 9.4 (-73.6%) 5.4 (-86.8%)


$860m: TRBusiness estimates that DF&TR revenue grew approximately in line with traffic growth of +5.4% in 2019 to reach $860m (€752m).


$759m: As reported in the Hong Kong Airport Authority’s FY2019/2020 report, retail licences and advertising revenue (representing 34.4% of total revenue) fell by 17.6%, to HK$5,893m ($759m). It must be noted that 2019 full-year figures were not available, meaning the comparison with the rest of this table is more unfavourable as it reflects the devastating early impacts of Covid-19 in the first quarter of 2020.


9 Tokyo Narita 44.3 19.0 4.1 (-78.4%)


$603m: Based on average exchange rates for year ending March 31 2019, duty free shop sales took a 52% share of total revenue, posting a decline of -14.8% year-on-year to JPY67bn (US$603m). It must be noted that 2019 full-year figures were not available, meaning the comparison with the rest of this table is more unfavourable as it reflects the devastating early impacts of Covid-19 in the first quarter of 2020.


10 Istanbul Atatürk 52.6 24.9 6.7 (-73.0%)


$560m: TRBusiness has been reliably informed that total duty free and travel retail sales at the new Istanbul Airport reached $560m, since it opened in April 2019. Please note that this retail figure refers to a nine- month period as the airport only opened in April. TRBusiness felt it was inappropriate to provide an estimate for the first three months of 2019 or 2020.


Total 715.6


$12.55bn: Slight sales decline of -1% vs $12.68bn registered in 2018. Total traffic decline of -2.7%, down from 735.5m.


Sources: Interviews with most airports and retailers; annual reports; official airport statistics and results; estimates. © TRBusiness. *2019 ‘international departures’ and 2020 forecasts provided by m1nd-set’s Business Intelligence Service (B1S).


18 TRBUSINESS AUGUST 2020


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