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JAPAN REPORT: NARITA INTERNATIONAL AIRPORT CORP (NAA)


numbers now exceed Japanese travellers using the airport. “We had 33.48m arriving and


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departing international passengers in 2017 plus 7.46m domestic passengers; a total of 40.9m passengers last year,” says Eguchi. “It’s a record and in our 40th


anniversary year after opening.” The number of


Japanese


passengers using Narita grew by 3% to reach 13.6m in 2017 while foreign passengers grew by 11% to reach 15.5m. Travellers continue to grow at a similar rate in 2018 and according to NAA figures a total of 17.1m international, domestic and transit passengers used Narita Airport from January to May this year, 3% more than during the same five-month period last year. International passengers grew


by 5% to 14.2m between January to May 2018, among which Japanese passenger numbers rose by 2% to reach 5.5m, while foreign passengers rose by 12% to 7.2m. Flights from Narita Airport now


serve 118 cities worldwide and boast 121 routes including new connections from Air Canada to Montreal, Fiji Airways to Fiji, Austrian Air to Vienna and S7 to Irkutsk. “We expect 35.4m international


passengers will use our airport in FY2018, a 6% increase compared to last year,” says Eguchi. “It’s mostly foreign passengers


including Chinese who are growing. Japanese people are also travelling


Left to right: Chihiro Oshima, Supervisor, Retail Operations; Hiroomi Eguchi, Deputy Vice President in the Retail Operations Department; and Chie Kurabe, Supervisor, Retail Strategy.


more than before, but their numbers show less growth overall.”


T2 sales ‘fastest growing’ As previously mentioned, NAA recently completed an 18-month programme to upgrade and expand airside duty free and tax free shopping facilities in the T1 main terminal departure area and T1 North and South wings. The project included opening 12


new duty free and tax free shops and luxury boutiques in addition to five new F&B outlets. Work on the new departure shops


was carried out at the same time that five arrival duty free shops were being built in Narita Airport’s three international terminals, as


Narita Airport’s sales by nationality


Passengers from China, Taiwan and Hong Kong currently account for 55% of FaSoLa’s total sales, while 21% of FaSoLa sales come from Japanese customers, Hiroomi Eguchi reveals to TRBusiness. A further 12% of purchases are made by other Asian customers. “The Chinese share of FaSoLa


purchases is growing by 2% this year while the Japanese customer share of purchases has decreased by 2%.” “Chinese passenger spending


“For duty free and tax free sales our target is 12% growth this year, a total of JPY 139.2bn. We are confident.”


Hiroomi Eguchi, Narita International Airport Corp (NAA)


part of plans to improve passenger facilities in time for the Tokyo 2020 Olympic Games. “We have been doing a big project


in the T1 airside area,” confirms Eguchi. “There are 12 new shops including four new boutiques. “Construction started in the


former passenger seating area in February 2017. It’s located in the T1 central area.


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downward trend in FY2016. “Chinese travel retail spending makes


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up 50% in our airport.” Chinese passengers are more likely


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to buy Japanese products along with imported luxury brands and e-cigarettes at Narita Airport while Japanese passengers buy from an assorted range of products, continues Eguchi. “Chinese customers buy Japanese


recovered in 2017 to the same level as the Bakugai ‘crazy shopping’ period in 2015. “The result for the second half of


FY2017 was up 6% vs the same period in FY2015 after we experienced the


OCTOBER 2018


perfume and cosmetics brands, Iqos e-tobacco, Suntory and other whiskies; for luxury brands they buy Gucci bags,” he describes. “Japanese passengers buy all


categories but Iqos e-cigarettes are very popular.”


Perfume and cosmetics is the fastest growing category, especially Japanese beauty brands such as SKII and Shiseido, says Eguchi.


TRBUSINESS 139


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