Core category contracts extended at HKIA

Airport Authority Hong Kong (AAHK) has confirmed to DFNI that it has extended Hong Kong International airport’s (HKIA) core category contracts with Nuance-Watson (HK) and Sky Connection. Nuance-Watson’s beauty and general merchandise contracts and Sky Connection’s liquor and tobacco contract have been extended for two years each.

 

AAHK general manager retail and advertising Eva Tsang told DFNI that although the authority had originally planned to retender the contracts later this year, it had decided to stay with the incumbents in light of its present expansion projects, including the enlargement of the East Hall airside in terminal one.

 

Tsang said: “Under the [existing] contracts, the authority is already provided the right to…renew the contracts for two years. In considering whether to exercise this right, we never ruled out any possible options...Taking into consideration the timing of our expansion project and the proposals from the existing operators for renewal, we felt that it is the best arrangement at this moment to renew the contracts so that we can have a thorough preparation for the next round of tenders, with expanded areas already in place by the tender time.”

 

The development is a big boon for Nuance-Watson (HK) and Sky Connection, both of which are heavily reliant on the core category business at HKIA, although both have diversified their businesses to other locations over the past two years. For the many retailers hoping for access to the core duty-free business at one of the biggest duty-free locations in Asia however, the delay will be a disappointment.