Clear The Air News Blog Rotating Header Image

Airport Authority Hong Kong issues eagerly awaited tender for core category concessions

HONG KONG. Airport Authority Hong Kong (AAHK) will this week issue tenders for its core category duty free concessions at Hong Kong International Airport (HKIA), setting in motion what may be the most hotly contested bids in industry history. [UPDATED STORY – The tenders were formally issued this afternoon (Monday, 15 August) Hong Kong time..]

On offer are the highly valued Liquor & Tobacco concession currently operated by Sky Connection, and the Perfumes & Cosmetics and Airside General Merchandise concessions, held by Nuance-Watson (HK). The bid deadline is 28 October.

The Moodie Report estimates liquor and tobacco sales last year at HKIA to have reached around US$200 million, with perfumes & cosmetics a little higher at about US$225 million.

But what really makes the contracts so attractive is HKIA’s passenger mix. AAHK noted that over 70% of its passenger base stems from Asia. Critically, 27% are from Mainland China, a booming market that has become an increasingly vital driver of the sector’s growth in recent years, particularly at HKIA.

Other high-spending nationalities are also to the fore: Taiwan accounts for 18%, South and Southeast Asia for 15%, Japan 7% and South Korea 5%. Such a mix amounts to a retailer’s dream.

The Liquor & Tobacco duty free licence, currently operated by Sky Connection, comprises 15 units across Departures and Arrivals. The space on offer covers around 2,730sq m, with stores measuring 20sqm up to 770sq m coming under this contract.

Leave a Reply

Your email address will not be published. Required fields are marked *