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ASIA-PACIFIC AIRPORTS MAGAZINE
RETAIL
Talking shop Sunil Tuli, president of the Asia Pacific Travel Retail Association (APTRA) and group chief executive of King Power Group (Hong Kong) shares an industry perspective on the COVID-19 pandemic.
A
s air travel virtually ground to a halt across Asia-Pacific in the wake of the coronavirus pandemic, so too did an essential lifeline of over $36 billion in nonaeronautical income, a critical contributor to the aviation industry in the region. This normally vibrant industry in APAC is effectively paralysed while flights are grounded, and borders closed. No passengers equals no shoppers, and no vital retail contribution to airport balance sheets. Duty free and travel retail is estimated to support over 320,000 jobs in AsiaPacific alone. The travel retail and duty-free sector is intrinsically linked with the aviation ecosystem. We cannot function without airports and airlines and they, in return, cannot deliver a viable business without the essential contribution of non-aeronautical revenue delivered by airport and inflight retail. Airport retail and commercial services, including food and beverage, constitute a crucial business sector, providing up to 60% APA Issue 2, 2020
of vital commercial income for airport owners, outpacing aeronautical revenue streams. As such, our industry is also the most significant direct contributor to the investment in Asia-Pacific's aviation infrastructure and the on-going development of world-class national gateways, the region's hubs to the world. As a member of the Duty Free World Council, we continue to engage on the impact of the pandemic as a global industry group of associations. At APTRA – the not for profit trade association representing brands, retailers, airports, F&B operators and trade associations in travel retail and duty-free in Asia-Pacific – we have intensified our advocacy focus, campaigning alongside the Duty Free World Council, to governments and industry bodies, such as ICAO, to recognise the unique dynamics of the travel retail industry, that are wholly different to domestic retail, and to include it in rescue and stimulus packages for the aviation sector.
