HONG KONG, CHINA. Airport Authority Hong Kong’s (AAHK) retail and advertising revenues, buoyed by the accelerating travel recovery, grew by +1,112.9% year-on-year from a low, pandemic-hit base for the financial year ended 31 March to HK$752 million (US$96.1 million).
The figure is equal to 9.2% of total income, according to AAHK’s newly published Annual Report 2022/23. It represents rents and fees payable to AAHK by licensees providing retail services (primarily duty free and other shops), food & beverage outlets, and advertising at Hong Kong International Airport.
Overall revenue jumped by +42% to HK$8,217 million (US$1,051 million) and EBITDA grew by +315% to HK$813 million (US$1,039 million). AAHK said the results were boosted by the rebound in passenger traffic and flight movements, higher revenue from retail and advertising licences and new convention and exhibition revenue.
AAHK said the reopening of shops and restaurants in Terminal 1 following a gradual improvement in passenger volumes was key to the retail and advertising sector increase. New duplex boutiques opened in the East Hall luxury shopping zone and the reduction of rental relief provided to shops and restaurants also buoyed performance.
During the year, the airport revamped its East Hall luxury shopping zone, opening three flagship duplex luxury stores Hermès, Louis Vuitton and Chanel. It also added new boutiques including Tea WG and Fortnum & Mason. The area now houses 40 high-end retail brands and food service options.
New F&B outlets were also unveiled during the year including Lee Fa Yuen Express, ManJie Dumplings, Tong Kee Bao Dim, Maison Kayser and Yuan Is Here.
Fit-out works for a new 24-hour food court in the Central Concourse and a new restaurant on Sky Bridge are also underway and are scheduled to open soon. Both will offer panoramic views of the apron.
Airport Authority Hong Kong CEO Fred Lam said: “As passengers enter Terminal 1, they are greeted by new multimedia installations displaying captivating content. Our East Hall luxury shopping zone in the restricted area boasts over 40 high-end retail brands and dining options. This year, new duplex stores added to the zone’s unrivalled selection.”
Looking ahead, Airport Authority Hong Kong Chairman Jack So said: “In addition to our core aviation business, we are building SkyCity. This development includes 11 Skies, which is Hong Kong’s largest integrated complex of retail, dining, entertainment and office facilities.
“Three grade A office buildings opened in 2022/23 and, in the years ahead, 11 Skies will launch several new attractions in phases. Preparations for the development of Airport City Cove, which will offer bayside leisure and marina facilities, as well as Phase 2 of AsiaWorld-Expo are progressing steadily.”
AAHK added: “In addition to continual investments in facilities, service upgrades and new technologies, we are actively expanding HKIA’s capacity and functionality to transform the airport into an Airport City.
“This will drive the economic development and long-term growth of Hong Kong and the region. All major projects under the Airport City are progressing full steam ahead.”
So said: “Fiscal 2022/23, ended 31 March 2023, was an encouraging year for Hong Kong International Airport, as the number of flights and passengers rebounded significantly after the pandemic-related travel restrictions were lifted.
“With the worst behind us, we are stimulating passenger demand and reviving airport businesses with several key initiatives, including a campaign that will give away some 500,000 air tickets to travellers around the world. The campaign is expected to create a multiplier effect and help expedite the recovery in traffic.
“We purchased the tickets from our airline partners in the depth of the pandemic – a clear indication of our confidence in the future. Now working closely with the airport community, HKIA is ready to fly high again.”
In March, the airport company launched the ‘World of Winners’ Tickets Giveaway Campaign, which sought to attract visitors back to Hong Kong and to support the aviation sector’ s post-pandemic recovery. AAHK started distributing about 500,000 air tickets in its major passenger markets and is expecting to generate some 1.5 million trips.
Footnote: Hong Kong International Airport is host for The Trinity Forum 2023, the world’s leading travel retail and airport commercial revenues conference. The event was created by The Moodie Davitt Report in 2003 and celebrates its 20th anniversary this year. Today, The Trinity Forum is co-organised with Airports Council International (ACI) World and ACI Asia-Pacific. Early bird rates are available until 15 August. Online registration is accessible here: https://trinityforum.events ✈
