JAPAN REPORT: KANSAI AIRPORT


travellers were announced by the Japanese government. At the time of writing, international


flight services and passenger numbers remain a small fraction of their previous level at Kansai Airport as it waits for the situation to recover. However, despite low traffic


Perfume & Cosmetics offer at the T2 KIX Duty Free store.


“The duty free stores and one of our tax free shops have continued providing our passengers with quality services; shop staff all wear masks.”


Kansai Airport source


2019 winter schedule, including: Zhengzhou, Chongqing, Beijing, Guangzhou, Nanchang, Wenzhou, Changzhou, Hangzhou, Qingdao, Nantong, Chengdu, Lianyungang and Lanzhou. As is no surprise, China’s airlines


were eager to increase routes to Japan in the lead up to the now- postponed Tokyo 2020 Olympic and Paralympic Games. Aircraft movements and passenger


numbers have plummeted at Kansai Airport since mid-March as travel restrictions on arriving foreign visitors and outbound Japanese


volumes, Kansai Airports has allowed several operators to open a number of duty free and tax free shops for limited hours each day, timed to coincide with the departure of the few daily flights being operated to major destinations in Asia, North America, Europe and the Middle East.


Reduced opening hours In T1, the KIX Duty Free South main shop, operated by Kansai Airports’ retail division, is currently open along with the division’s South Wing tax free store. The AAS Duty Free mixed


category shop, AAS’ three luxury brand boutiques


(Ermenegildo


Zegna, Montblanc and Hugo Boss), Blanc de Blanc’s nearby perfume and cosmetics store, and its T1 South Hermès boutique are also operational in T1. Elsewhere at Kansai Airport, the


KIX Duty Free T2 mixed category shop is open, serving passengers flying with low-cost carriers. “It’s September… we are still in


crisis, but we open these shops when there are flights,” a Kansai Airports source told TRBusiness.


Arrival shop sales increase at Kansai Airport in FY2019


Kansai Airports’ (KIX) non-aeronautical revenue, comprising mainly duty free sales, decreased by 3.7% to JPY 126 billion/$1.2 billion in FY2019, down from JPY 130.1bn the previous year. The non-aeronautical revenue share


of total revenue remained unchanged at 59%, according to the FY2019 annual report. Non-aeronautical revenue was


impacted by the spread of Covid-19 in February and March 2020 (Q4 FY2019), which caused decreased passenger numbers and reduced spending in Kansai Airport’s duty free shops. “Revenue through January 2020 hit a record high (up 8% YoY) owing to the


32 TRBUSINESS


solid growth in spending by Chinese customers,” according to Kansai Airports’ FY2019 annual report. “As the virus spread across the globe,


passenger traffic has significantly fallen since February, resulting in a decrease in annual revenue by JPY 3.7 billion (down 3% YoY).” Chinese passengers accounted for


74% of duty free sales at Kansai Airport’s directly managed shops in FY2019, followed by Japanese customers with a 12% share of purchases. Taiwanese passengers represented


4% of purchases and South Korean customers 3%. “Duty free sales increased thanks to


the strong Chinese demand, mainly for Japanese brands,” said a KIX source. “Arrival shop sales jumped due to the e-cigarette demand.”


“The duty free stores and one of


our tax free shops have continued providing our passengers with quality services.” Aircraft movements and


passenger numbers at Kansai Airport are still far below pre-Covid levels and although some international passenger flights resumed in July, the growth in passenger traffic is small. International passenger traffic at


Kansai Airport in July 2020 totalled just 9,718 passengers, representing a 99.6% decrease year-on-year. Foreign passengers numbered


3,783 in July, down 99.8% YoY, while Japanese passengers numbered 4,937, registering a YoY decrease of -99.2%. In order to adhere to government


guidelines and reassure returning passengers that it is safe to fly again, Kansai Airport has adopted various strict hygiene and sanitising procedures. Duty free operators and other


retailers, along with restaurants and all passenger service providers, have to implement approved measures before re-opening to ensure the safety of passengers and airport staff. “Plastic curtains are installed in


front of the duty free shop cashiers, and hand sanitising facilities,” said the source. “Shop staff all wear masks;


also customer spacing stickers are stuck on the shop floor to ensure social distancing.” «


Kansai Airport handled an average of 60,277 daily international passengers in the financial year ending 31 March, 2020 (FY2019), along with 18,321 daily domestic passengers.


OCTOBER 2020


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