JAPAN REPORT: KANSAI AIRPORT Typhoon could jeopardise Kansai’s autumn sales


Damage from Typhoon Jebi, the most powerful to hit Japan in 25 years, threatens to disrupt operations at Kansai International Airport during the normally busy autumn tourist season in Osaka. David Hayes reports.


T


he Chinese Mid-Autumn festival


in September (24th) normally attracts


large numbers of mainland visitors to Osaka, Kyoto and the surrounding area. However, on 4 September


Typhoon Jebi, packing winds exceeding 220kph, struck the Kansai region and western Japan, forcing Japan’s third-largest airport to close and stranding 3,000 passengers. Domestic flight services resumed


three days later, with the first international flight, All Nippon Airways (ANA) to Shanghai, departing the following day using Kansai Airport’s single operational runway, while the other runway remained flooded. In addition to ANA resuming


flights to Shanghai, LCC carrier Peach Aviation resumed flights to Hong Kong, Seoul, Busan, Taipei and Shanghai the day after restarting domestic flights (7 September) from Terminal 2. At the time of writing, flights


were not expected to resume on the flooded runway until the middle of September. Typhoon Jebi has therefore


disrupted what promised to be another year of double-digit growth in both the numbers of passengers and duty free revenue at Kansai Airport.


DF sales +40% in FY2017 Located on a manmade island in Osaka Bay, the airport is the main international gateway to western Japan and boasts the largest number of direct flights to China, handling an average 63,000 international passengers daily, along with 18,000 domestic passengers. “Our duty free sales in FY2017


(year ending 31 March, 2018) increased by 40%; our tax free sales rose by 11%,” a Kansai Airports source told TRBusiness the day before Typhoon Jebi struck Japan. “Total international passenger


OCTOBER 2018 The typhoon could disrupt sales for Kansai Airport during its usually busy autumn period.


traffic in FY2017 and FY2018 has increased steadily.” Kansai Airports handled 22m


arriving and departing international passengers in FY2017, an increase of 14% over the previous year. Among this total, the number


of foreign passengers reached 17m in FY2017, up 21% compared with the previous year, while Japanese passengers increased 3% compared to FY2016. The number of international


passengers rose by 13% to 7.7m between April and July in the current FY2018, compared with the same period last year. Meanwhile, the number of


Japanese passengers has increased more quickly this year, rising by 11% to 2.1m during the four-month period, versus slower foreign passenger growth of +13% to 5.5m between April and July. Japanese cosmetics remain the top selling products in Kansai Airport’s duty free shops – which is also the case for Tokyo’s two international airports. Tobacco sales are also showing noticeable growth. “E-cigarette brand Iqos [which is


not available in China] and Japanese cosmetics brands such as Shiseido and SKII have been driving our core duty free sales,” the source commented, echoing the retailers operating at Narita and Haneda airports in Japan’s capital.


Meanwhile, it is uncertain


whether plans to expand Kansai Airport’s perfume and cosmetics offer will be affected by the current disruption to international flight services. Kansai Airports


recently


announced plans to introduce high- end Japanese cosmetics brand Albion in its Kansai Duty Free T1 South Wing main Store, which is operated by Kansai Airports’ duty free subsidiary Kansai Airport Agency (KAA), on 27 September. In addition, Kansai Airports has


announced plans to introduce Japan’s first airport Dior ‘Perfume & Beauty Boutique’. Scheduled to open on 9 October


and operated by DFS Group, the new Dior boutique will appear in T1 North Wing, replacing one of DFS’ existing luxury brands. In addition to fragrances and


cosmetics, Kansai Airports has announced the new boutique will display candles, soaps and silk scarves. «


Kansai Airports has announced plans to introduce Japan’s first airport Dior ‘Perfume & Beauty Boutique.’ Scheduled to open on 9 October and operated by DFS Group, the new Dior boutique will appear in T1 North Wing, replacing one of DFS’ existing luxury brands.


TRBusiness TRBUSINESS 169


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