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Asia-Pacific Airports Gear Up For Surge In Travel Retail

Asia-Pacific Airports Gear Up For Surge In Travel Retail

Asia-Pacific Airports Gear Up For Surge In Travel Retail

Travel in the Asia-Pacific region is down nearly 95 percent from pre-pandemic levels, but major airports in the region are preparing for a surge in business as travel restrictions are lifted and consumers feel more confident about venturing out.

For example, New Zealand’s Auckland Airport is building a 230,000 square meter outlet mall, which will have more than 100 stores, the airport announced last week. Meanwhile, other major airports, such as Singapore’s Changi Airport, are opening new storefronts for local brands such as Marhen J. and fashion and lifestyle retailer, Turtle.

These developments come as countries are forming travel bubbles as they look to open up their borders to travelers from select countries. Singapore, for example, is planning to allow visitors from countries such as China, Hong Kong, Macau, New Zealand and Taiwan without requiring them to go through a mandatory quarantine period. New Zealand, meanwhile, plans to allow vaccinated travelers from low-risk countries to enter its borders early next year, according to Business of Fashion.

Retailers are already starting to see a surge in travel retail sales, which domestic travelers are currently driving. Estée Lauder, for one, saw sales increase by 13 percent year on year, with travel retail resulting in double-digit growth in certain geographies such as the Hainan region in China.

“Our growth engines of Skin Care, luxury and artisanal Fragrance, Asia/Pacific, travel retail in Asia/Pacific, and global Online performed exceptionally well. Innovation soared and eight of our brands grew sales double-digits, led by Estée Lauder, La Mer, and Jo Malone London,” said Estée Lauder’s CEO Fabrizio Freda in an earnings call last week.

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