Hangzhou Xiaoshan International Airport is growing fast and Raymond Ng, Deputy General Manager says last year’s slight fall in duty free sales should come right this year.
“The decrease in duty free sales has been mainly due to the global economic recession, but we expect it will restore to a positive trend in the near future with the promotional efforts of our duty free operator, China Duty Free Group and increasing numbers of international passengers,” said Ng.
Duty free and duty paid travel retail sales figures have now been finally counted for last year, with Ng revealing duty free revenue of Rmb.60m ($9.6m) in 2012, minus 7.7% compared with Rmb.65m ($10.4m) in the previous year.
By contrast, duty paid sales showed strong double-digit growth, reaching Rmb.372m ($59.8m) in 2012, up 18% on the Rmb.315m ($50.6m) sales recorded the previous year.
CHINESE SPENDS EXPECTED TO IMPROVE
Speaking exclusively to The Business, Ng said: “Duty free sales were not as good as we expected in 2012. Domestic duty paid sales had a good performance, but duty free revenue was less than 2011 dropping nearly 8% but domestic duty paid sales increased 18%. Total travel retail revenue is OK, but we have to increase duty free in future.
“Regarding the duty free sales performance last year, I think it is in line with the slowdown in the Mainland economy and the vulnerable international economic situation.
“Looking ahead in 2013, we are cautiously optimistic that the sales performance will improve in view of the global economic situation, an increase in international passenger throughput and the operator CDFG’s promotional activities.”
Hangzhou Xiaoshan International Airport serves Hangzhou, the capital of Zhejiang Province in East China.
Asia & Pacific,