Chinese travellers boost Kuala Lumpur sales

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Retailers at the Malaysian airport report strong growth on the back of derestricted travel from China

Strong traffic from mainland China has boosted operators at Kuala Lumpur International airport, according to Dimensi Eksklusif managing director Zainul Azman. The company, which sells cigars, fragrances and cosmetics at the airport, reported sales to the end of August up 30% on the same period last year.

Visa relaxations introduced at the beginning of the year have made it easier for individual Chinese citizens to travel abroad, while close cultural ties and improved air connections between the two countries have made Malaysia a popular destination. Azman said that the increased Chinese spend had added to a general improvement in passenger numbers.

"Passenger traffic is recovering strongly from the drop that followed SARS," Azman told TRW, "and there has been no political instability in Malaysia this year. Traffic through the airport has reached 19m passengers, including domestic, for the year so far, and all the retailers here are producing good results."

He added that a busy calendar of international sporting events, including the Formula One race in March, the powerboat Grand Prix in September and the world motorcycling championship in October had a positive effect on sales. "The followers of these events are generally quite affluent travellers, and we have noticed good results at our stores when the races take place," he said.

The company made some cosmetic changes to its stores early this year, upgrading the entrances and fascias, despite the fact that its retail contract expires in June next year. "We definitely want to stay here when the contracts come up for tender, either late this year or early next," he said, "and we hope the airport authority will decide to allocate more space to our business."

Azman said that he expected the airport to investigate building a new terminal in the near future to cope with anticipated growth, as the facility is likely to reach its 25m capacity in the next few years. He predicted that both Chinese and Indian traveller numbers would continue to grow in the short term.