Retail central to Jamaica airport expansion

Gavin Lipsith

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Jamaica's main international gateway Sangster airport is to more than treble retail space by 2008, with an extra 1,186sq m to open by January 2006

Jamaica's Sangster International airport is to open the first section of its extended terminal building in January next year, adding about 1,186sq m (12,761sq ft) of retail space to the facility's first floor departures area. Airport management company MBJ Airport, which was granted a 30-year concession agreement to run the airport in 2003, has invited proposals for 13 additional duty-free, speciality retail and catering outlets in the space.

The developments are part of a $102m infrastructure development plan that includes a second phase of expansion, due for completion in 2008, in which a further 40 outlets will be tendered. Total commercial space at the airport, including a new 'retail precinct' in departures, will more than treble in size from 1,888sq m (20,314sq ft) today to approximately 5,800sq m (62,408sq ft) in July 2008. The second phase retail areas will be opened in five different stages starting from November 2006 through to July 2008.

The expansion follows strong commercial growth since MBJ signed its concession with the Jamaican government, executive vice-president commercial Michael Kandert told RavenFox.com. Non-aeronautical revenues have grown from 22% of total income in May 2003 to 37% in December 2004, while non-aeronautical revenue per passenger has grown from $1.34 to $2.92 in the same period.

Kandert said: "When MBJ assumed responsibility for the airport there were six duty-free, 11 speciality retail and 14 catering outlets there. Three commercial units were lost as a consequence of the terminal development programme, so in order to enhance the overall retail offer and level of customer service, we added 20 outlets. While we have made significant gains and created a renewed retailing impetus, the full exploitation of commercial opportunities will only be achieved after the expanded terminal facilities are commissioned. As part our current retail drive, we are looking to complement the existing mix of retailers by introducing international retail chains and franchises into our concession programme."

Jamaica has two international airports serving distinct markets. While Kingston airport serves the business and local market, with roughly 80% of its traffic originating from within Jamaica, Sangster primarily serves the tourist market. About 75% of traffic at Sangster originates from or is destined for North America, and UK routes account for 10%.