TOP 10 AIRPORTS: HONG KONG INTERNATIONAL 8 F


Hong Kong Airport endures ‘most difficult year’ in its history


During the ‘most difficult year in its history’, Hong Kong International Airport’s retail licences and advertising revenue slid by 17.6% to HK$5,893m/$760m – down from HK$7,149m in the previous year. However, the airport authority believes this to be a temporary setback and that traffic figures ‘will recover’. Charlotte Turner reports.


iscal 2019/20, ended 31 March 2020, was described as a ‘trying year’ for Hong Kong


International Airport (HKIA) by the company’s Chairman Jack So Chak- kwong. During this time, it faced a double negative impact: social unrest during the second half of 2019 and the coronavirus disease (Covid-19). In 2019/20, the number of


passengers sunk by 18.9% to 60.9 million as a result of months of major civil disruption and the spread of Covid-19. As extensively reported, ongoing


2019-20 Hong Kong protests were triggered in June of last year by the introduction of the ‘The Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation (Amendment) Bill’ by the Hong Kong government. The bill was withdrawn in September, but demonstrations continue, albeit much dampened by the coronavirus pandemic. Knock-on effects included flight


cancellations and disruption at HKIA in August 2019, resulting in dislocated passenger flows and delays, which ultimately impacted operations for Gebr. Heinemann, CDF-Lagardère and The Shilla Duty Free. During this same period, HKIA


admits that operating expenses had to increase in part due to ‘additional retail promotional activities’ necessary to ‘offset the impact brought by social unrest’. However, the impacts to Hong


Kong’s tourism industry (and therefore HKIA’s passenger traffic) were being felt at least two months before this. Research published by


ForwardKeys at the time suggested that


AUGUST 2020 travellers’ confidence


had been shaken due to the ongoing turbulence in the special administrative region.


East Hall makeover Between 16 June - 09 August, a period characterised by a two million strong-demonstration, general strikes and riots, flight bookings to Hong Kong from Asian markets declined by 20.2% compared to the same period year-on-year. In the first 14 days, bookings


dropped by 9% and by 2.2% in the following fortnight (30 June - 13 July). The situation deteriorated from


the 14 July to 09 August, with a 33.4% decline in bookings. However, during 2019 HKIA did


complete a series of enhancement projects and made solid progress on the upgrading of Terminal 1 with a ‘vibrant new look and an elevated ambience’. Other positive commercial


developments included the complete revamp of the East Hall food court and a ‘refreshed’ retail offer throughout, with the debut of 10 luxury brands. In addition, HKIA introduced


‘Luxury Reserve’, a personal shopping service that allows travellers to reserve premium


products 48 hours before their flights. When the shopper arrives at HKIA, they simply collect and pay for their purchase at the store. It also enhanced HKairportShop.


com, its online platform through which travellers can order goods for collection at HKIA or local delivery. “We shortened the order lead


time by 50%, to 90 minutes, increased the number of items by about 60%, to 5,700, and added dutiable liquor to the product mix,” insisted Airport Authority Hong Kong (AAHK) in its FY2019/2020 financial statement. It was also pleased to report


that in November 2019, it further enhanced its online shopping platform by collaborating with Alipay. Looking ahead, HKIA reveals that upgrades to the public areas


Other positive commercial developments included the complete revamp of the East Hall food court and a ‘refreshed’ retail offer throughout, with the debut of 10 luxury brands.


TRBusiness TRBUSINESS 39


Above: HKIA’s duty free operators have endured a tough fiscal 2020 and conditions are not likely to get better any time soon.


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