A UNIT of Changi Airport Group has entered a joint venture (JV) to manage the non-aeronautical commercial operations at Haikou Meilan International Airport.
Changi Airports International (CAI) will own a 49 per cent stake in the JV, while Hainan Meilan International Airport will own 51 per cent.
The JV will have exclusive rights to manage retail, food and beverage, advertising, leisure and commercially important-person airport services at the Chinese airport for 10 years, starting from January 2025.
On Sunday (Oct 20), CAI noted that the tie-up aims to transform Haikou Meilan International Airport into an integrated consumer hub and increase consumer spending to boost commercial revenue.
Eugene Gan, chief executive of CAI, said: “With China’s growing economic and tourism potential, this partnership also supports Hainan’s goal of becoming a global tourism and trade centre.”
Key areas of focus for the JV include expanding the variety and quality of both international and local brands, such as introducing offshore and international duty-free shopping.
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It will also curate a selection of dining options that cater to international and local tastes, as well as provide passenger relaxation and entertainment facilities. The JV will also provide “world-class” lounge offerings as part of the commercially important-person services.
Located in the capital of the Hainan province in China, Haikou Meilan International Airport serves as a gateway for both domestic and international travellers. As at October 2024, the airport connects 116 domestic destinations and 30 international locations.
Haikou Meilan International Airport recorded a passenger throughput of 24.3 million passengers last year, ranking 18th among all airports in China.
“The airport’s capacity to handle 35 million passengers per annum highlights its importance and potential for further expansion,” said CAI.
Additionally, the airport houses offshore duty-free shops where domestic travellers are able to purchase duty-free merchandise. Such shops are a key component of non-aeronautical revenue growth potential, it noted.
While the number of international passengers at the Chinese airport slipped to 480,000 in 2023, from 1.4 million in 2019, CAI highlighted the recent figure “signals opportunities for further growth in this segment”.
