Haikou Meilan International Airport has been granted approval to begin operating its new Terminal 2 which will boast the largest airport duty free shop in China.

Construction was completed on 30 June 2020 and a permit permitting the terminal to be used was received on 26 August 2020.

According to a Hainan government news release, the new facility (Known as the airport’s Phase 2 Expansion project) covers an area of 300,000sq m and is located 500 meters away from the existing Terminal 1.

Total commercial space in the new terminal is around 33,000sq m, with 10,600sq m devoted to tax free. Creating the largest airport duty free shop in China in partnership with China Duty Free Group and capitalising on Hainan Island’s new duty free policy, which was implemented on 1 July, were among the aims of the project.

INCREASED CAPACITY

The new terminal comprises five parts (main central building, southwest corridor, northwest corridor, southeast corridor and northeast corridor) and will increase the annual throughout of international passengers from eight million to 10 million. Total passenger throughput will rise to 45 million.

Meanwhile, Hainan Meilan International Airport Company Limited reported non-aviation revenue of RMB420,481,785 in the six-month period ended 30 June 2020 (Source: Hainan Meilan International Airport Company Limited). This represents a -4.83% decrease compared to the previous corresponding period in 2019. Total revenue during the six-month period amounted to RMB608.50m, compared to RMB813.64m in the six months ended 30 June 2019.

The airport handled 6.0432 million passengers in the first half of 2020, compared to 12.4994 million in the opening six months of last year.

In order to mitigate against the impact of reduced passengers due to the coronavirus (Covid-19) pandemic, Haikou Meilan Airport Duty Free Shop, which runs a successful offshore duty free business at the airport, launched various online marketing campaigns. These include the ‘First Lipstick Festival’ and ’51 Perfect Holiday Plan’. The purpose of the campaigns was to stimulate consumers’ enthusiasm and drive revenue growth amid the decline in consumers as a result of the pandemic.

Around two years ago, Haikou Meilan Airport Duty Free Shop, a subsidiary of Hainan Provincial Duty Free Co partnered with China Duty Free Group.

TRBusiness has reached out to Hainan Meilan International Airport Company Limited and China Duty Free Group for comment and will bring you more information on their commercial plans for the terminal in due course.