Hong Kong and Hangzhou airports launch retail development consultation project – 22/09/06

Hangzhou Xiaoshan Airport: Annual passenger growth of +10.7% is forecast until 2015

HONG KONG. Hong Kong International Airport (HKIA) and Hangzhou Xiaoshan International Airport (HXIA) have launched a project to share best practices and strategies in retail development.

The project is intended to allow HXIA to take advantage of HKIA’s extensive experience in cultivating retail outlets, increasing retail spend and creating attractive opportunities for in-airport advertising.

“HKIA has a proven strategy to create an environment that meets the needs of retailers, advertisers, passengers, meeters and greeters and other consumers,” said Airport Authority Hong Kong General Manger of Retail and Advertising Business Kong Eva Tsang. “This is proven by our enormous +20% increase in retail sales last year over a +10% passenger increase. Applying this model to HXIA, together with the inherent advantages of the Hangzhou marketplace, will create enormous opportunities for growth.”

Hangzhou’s passenger throughput in 2005 was 8 million, a +27.7% increase over 2004, with growth per annum of +10.7% forecast from 2005 to 2015. The airport’s retail outlets will serve a population of 32 million in the immediate catchment area.

HXIA is holding a public tender for its retail and catering services from 18 September to 18 October, with 25 retail and 11 catering outlets, totalling 5,000sq m, available. Concessions include food & beverage, brand names, duty free, general merchandise, pharmaceuticals, convenience goods, arts & crafts, destination souvenirs and packaged foods.

The consultation project is part of a strategic alliance between the two airports signed in January 2005. The alliance aims to help the airports to complement each other by utilising resources and enhancing the flow of people, goods, money and information between the two locations.

“During the past few years we have seen airports around the region looking to maximise their potential, as HKIA is doing now,” said Airport Authority Hong Kong Commercial Director Hans Bakker. “Given the strong GDP growth in Hangzhou, and the rising spending power of local people, we believe that HXIA is on a path to success.”

Located at the Yangtze River Delta, and as a major tourist city as well as a domestic transportation hub, Hangzhou is one of the fastest-developing cities in mainland China. The average monthly income there in 2005 was US$1,130 (CNY9,000), and annual GDP growth is predicted at +9.2% over the next ten years. 22 airlines currently serve HXIA, connecting with 69 cities.

HKIA has also undertaken consultation projects with Shanghai Pudong Airport in areas of retail development and flow management and has just signed a joint venture agreement to manage Zhuhai Airport in Guangdong.

Retail and catering sales at Hong Kong SkyMart, HKIA’s 30,000sq m retail complex, reached a record high of over US$1 billion (HK$7.8 billion) in 2005 – an increase of more than +20% over 2004.


Nuance-Watson marries two worlds as Temptation Duty Free unveils Vera Wang’s Princess in Hong Kong – 20/09/06

HKIA hosts Asia Pacific’s first Airport Cities Conference – 11/09/06

Nuance-Watson (HK) unveils ‘Intelligent Home’ concept – 11/09/06

Nuance-Watson (HK) and Omega team up with new-look airport boutique – 17/08/06

Mainland Chinese and Southeast Asian passengers fuel July traffic boom at HKIA – 15/08/06

Airport Authority Hong Kong strikes joint-venture deal to manage Zhuhai Airport – 03/08/06

Hong Kong Airport unveils summer promotions – 25/07/06

Food & Beverage The Magazine eZine