JAPAN REPORT: TIAT
While TIAT looks forward to a significant boost in retail sales when expansion is complete – as a result of a huge influx of international travellers attending the Olympic Games – growth in TIAT’s existing duty free shops, boutiques and tax free shops slowed in the first quarter of this year.
TRBusiness Unlock the full potential... “We are also considering offering
exclusive items’ especially Japanese sake but this has not yet been decided.” The T2 store will be duty free
only with no Akihabara Tax Free Shop area.
considering trying men’s cosmetics, from Japanese and international brands,” he adds. “We will have a men’s cosmetics
counter; we are targeting men between 35-45 years old.
Sales slow in Q1 Planning has also begun on the T2 arrival duty free shop, which has been allocated a footprint almost three times the size of the present TIAT duty free arrival shop. It will also offer customers a much larger range of imported liquor, tobacco, confectionery and possibly other items. While TIAT looks forward to a
significant boost in retail sales when expansion is complete – as a result of a huge influx of international travellers attending the Olympic Games – growth in TIAT’s existing duty free shops, boutiques and tax free shops slowed in the first quarter of this year. Stricter customs inspections in
China’s larger airports since the start of this year are believed to be the main reason for the slower rate of increase, after purchases of Iqos e-cigarettes by Chinese passengers rose sharply in FY2018. “Our total airside travel retail sales
increased about 7% to 8% in FY2018, while international passenger numbers grew 6%,” says Daisuke Fujioka, Director for Sales and Marketing at Tokyo International Air Terminal Corporation. “We are happy with last year’s
sales as our Central TIAT Duty Free shop was under renovation, which meant a decrease in sales in the central area. But we still managed to increase our total sales revenue.”
Arrivals shops perform Although actual sales figures were not available for FY2018, TIAT’s airside duty free and tax free sales totalled JPY68.5bn ($622m) in calendar year 2017. Based on the stated 7% to 8%
TIAT’s expansion plans include building two more flight gates and a separate TIAT Annex. Government drives up pax capacity in Tokyo as flight slots set to rise
Haneda, which is a 24-hour airport, operates about 110 international flight slots daily, at present. However, these will increase in March
2020 to about 160, under government plans to increase international airport passenger capacity in Tokyo. The government has already
pax capacity to about 27m international passengers a year. TIAT handled 17.7m arriving and
growth rate, this suggests that airside travel retail revenue in 2018 reached about JPY73bn ($690m),
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as before,” says Fujioka. “But next year there will be a big
announced that 24, or half of Haneda’s extra flight slots will be used to increase the number of daily flights between Haneda and cities in the US. The increase in flight slots and
TIAT’s international passenger terminal expansion programme will create facilities capable of handling up to nine million additional passengers annually, according to Fujioka, increasing TIAT’s
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departing international passengers in 2018, up 6% compared with the previous year. More than half of all passengers using TIAT are Japanese and foreign businessmen. Japanese travellers accounted for 55% of all passengers using TIAT in 2018 while Chinese passengers made up 13% of total traffic; up 2% from 2017. South Korean passengers represented
6% of the total international passenger traffic at TIAT in 2018 and Taiwanese visitors 4%. “This year we forecast a 6% growth in passengers to 18.8m, it’s the same trend
TIAT’s expansion plans include building two more flight gates and a separate TIAT Annex.
OCTOBER 2019
increase for Haneda Airport as TIAT’s international passenger capacity will increase by 44% to 27m arriving and departing passengers.”
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