Tappoo to exercise renovations as it nears mid-way point in 14yr contract

By Luke Barras-hill |

While passenger average spend has dampened compared to 2023, the average number of duty free transactions is showing growth, says Tappoo Group.

The Tappoo Group of Companies (Tappoo) is eyeing refurbishments at its duty free operations at Nadi International Airport in Fiji.

Tappoo, which holds the departures and arrivals duty free contract, will near the half-way point of its 14-year concession term (7+7) later this year.

“Now is a good time for us to do renovations,” Tappoo Group of Companies Executive Director Kaushal Tappoo told TRBusiness Shorts.

“We need to realign the percentage of sales per category, reflecting the per-square-metre space; we’ll be looking at perfumes & cosmetics and liquor and confectionery as main areas of growth.”

In a conversation touching on elements such as pricing and allocation, Tappoo says the duty free business is experiencing a slight slowdown in growth in 2024 following the peaks of 2023, though sales in the first three months of this year remain up on last year.

“In 2023 we saw unprecedented growth and we benchmark against 2019 which was Fiji’s best-ever year,” continued Tappoo. “The percentage growth of 16-20% in 2023 over 2019… this year the growth has been about 5-6%.

TRBusiness caught up with Tappoo Group of Companies during the TFWA Asia Pacific Exhibition & Conference.

Fiji travel: No signs of waning

While the number of transactions are tracking in growth territory, average transaction value has moderated.

“We’ve started seeing the average consumer spend slightly drop versus last year, but May, June, July August, September are peak months for Fiji and we’re expecting around 10% growth.”

“I think we’re slightly above 2019 levels still, but about a 10% drop in value.”

Fiji’s close proximity to Australia and New Zealand is reflected in the number of daily flight frequencies.

Approximately five daily flights operate from each to the South Pacific archipelago, which adds to its allure to travellers who can make bookings and travel within the same time zone.

Australia and New Zealand account for around 70% of visitors to Fiji.

This couples with the ease of booking for passengers making leisure trips to Fiji, with around five daily flights from Australia and four to five daily flights from New Zealand.

International

OUT NOW: June/July issue + Top 10 Airports

The TRBusiness June/July 2024 edition, featuring the Top 10 Airports report, is now available...

International

TR Consumer Forum 2024 photo gallery now live

The TR Consumer Forum 2024 was packed with memorable moments, from the very first networking...

The Americas

Avolta expands US presence with 15-year contracts at John Wayne Airport

Avolta is set to grow its presence at John Wayne Airport in Orange County, California, through a...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend