KLIA retail revamp on hold until 2008

Gavin Lipsith

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Kuala Lumpur International airport's extensive retail renovation has been delayed after the Malaysian Ministry of Tourism issued strong objections to starting work this year

Kuala Lumpur International airport's (KLIA) extensive retail renovation has been delayed until 2008 after the Ministry of Tourism raised strong objections to starting work on schedule earlier this year. Concessionaires at the airport confirmed that the ministry was concerned that construction - including the addition of several new shops to the international satellite terminal and a general terminal upgrade - would damage international tourists' first impressions of Malaysia during an intense year-long tourism campaign in 2007.

Several retailers were due to begin five-year contracts at the airport after gaining extensions to their business in 2005. The operators - including Dimensi Eksklusif and Colours & Fragrances - have been operating on rolling month-long contracts since July 2005. Dimensi managing director Zainul Azman told RavenFox.com that, after the postponement of works, the rolling contracts were likely to continue until the third quarter of 2008, when the new five-year contracts are likely to start.

Azman said: "Next year is the fiftieth anniversary of Malaysia's independence and the tourism ministry has planned a strong tourism campaign to celebrate. It is concerned that the first impressions would be damaged if the airport is covered in hoardings. We will be able to carry out minor renovations in existing stores, but relocations and new store openings will not happen until 2008."

Colours & Fragrances buyer Amy Chew confirmed that next year's scheduled renovations had been delayed, but the company will still continue with refurbishments to its current 150sq m (1,614sq ft) beauty store, located between gates 31 and 37, in KLIA's international satellite building this year.

She stated: "We've recently received news from the Malaysia airport authority that KLIA's new tender renovations will start in 2008. This is due to the Malaysia's Tourism Board launch of the all important Visit Malaysia Year 2007 and renovations in KLIA should therefore be minimised to avoid inconvenience to KLIA travellers."