CHINA (HONG KONG). First relief, then recovery. That’s the hugely encouraging story at Hong Kong International Airport (HKIA) as retailers and food & beverage operators gear up their plans to reopen in the wake of the recent easing of quarantine measures for inbound residents and visitors (full details here).
The airport has suffered a devastating impact from the strict border and travel constraints that have been in place throughout much of the pandemic. Stringent travel restrictions on Mainland Chinese, a crucial component of the HKIA passenger mix, have added to the pain. Even though passenger numbers rose +116.3% year-on-year in August to 479,000, that represents just 7.99% of the same halcyon period in pre-pandemic 2019 when 6 million travellers used the airport in a single month.
However, the dramatic change in the quarantine regulations has led to soaring demand by Hong Kong residents for overseas travel, a dynamic that is set to produce sharply increased monthly passenger traffic figures.
Yesterday Airport Authority Hong Kong (AAHK) announced its continued strong support of the airport community by extending its commercial relief package for two months to the end of November. Base rent for tenants in the terminal that are open for business continue to be waived as part of the programme. Rental is waived for retail and catering tenants that have suspended business.
However, the focus is shifting fast. Several HKIA retailers and food & beverage operators told The Moodie Davitt Report that they are anticipating reopening in coming weeks, joining an ever-growing band of AAHK’s partners that are trading.
The two anchor licensees, Duty Zero by CDF (wines & spirits, tobacco and gourmet foods) and Beauty&You (perfume & cosmetics, run by The Shilla Duty Free), are now operating two shops each in key zones of the terminal.
Food & beverage (F&B) services have been enhanced gradually over recent months with more than 50% of F&B outlets landside now reopened. Airside, the two food courts are in operation, supported by a wide range of coffee cafés and light refreshment outlets such as Starbucks and Maison Kayser (below) in different parts of the terminal.
The Moodie Davitt Report understands that the luxury zone comprising 40 first-tier brands will reopen gradually from 1 November onwards, with support from major brand partners.
Confirming that position and in a particularly welcome piece of news for AAHK (and HKIA passengers), LVMH Group President North Asia Michael Schriver told The Moodie Davitt Report: “Louis Vuitton plans to support the airport when they open, currently targeting November 1.”
“Currently, about 40 shops and restaurants in the terminal are providing service and more are expected to reopen to meet the demand from the increase in passenger traffic after further relaxation of quarantine requirements,” AAHK said in a statement.
Wider relief measures
Commenting on the recent changes to quarantine regulations, AAHK said: “As the Government eases quarantine requirements for inbound travellers, AAHK will review the relief measures taking into account the business environment.”
In additon to the retail and catering relief measures mentioned, various fee waiver or concession policies supporting the industry will continue from October to November. These include the full waiver of parking charges for idle passenger aircraft and airbridge fees; reduction of passenger aircraft landing charges; fee reduction related to ramp handling, maintenance and airside vehicles; as well as rental reduction for terminal tenants covering lounges and offices.
Additional fee waviers include terminal licencees such commercial services counters and cross-border transport operators, Concessions on fees for aviation support services such as into-plane fuelling, aircraft maintenance and inflight catering services are also included.
More details about the shops and restaurants currently trading can be found at: https://www.hongkongairport.com/en/shop-dine/highlights-promotions/.
