The Asia-Pacific factsheetdfworldcouncil.com/wp-content/uploads/2020/09/09.17... · 2020. 9. 17. · Overview of current situation : Asia Pacific The overall situation in Asia continues

4.7% 9.7% 6.5% 6.3% 9.5% 7.0%

-78%-70% -67% -64% -72% -70%

Hong KongSAR (HKG)

Incheon(ICN)

Singapore(SIN)

Bangkok(BKK) Taipei (TPE) Top 5

Busiest intl pax markets H1 2020 % change

Airport

business

Source: ACI (2020)

Source: ACI (2018 data)

Revenue

share %

Duty free concession

revenue per intl pax>40m PAX

The Asia-Pacific factsheet

Aero51%

Non-aero47%

Non-operate

2%

$7.15

$4.06

Asia-Pacific Global

8.4%

7.0%

CAGR % 2009-2019

Dom

Intl

Pax traffic

mix

Source: ACI (2020)

International34%

Domestic66%

7.5

4.4 3.4 4.3 4.5 5.31.2 -41.2

-77.5

-98.9 -98.9 -98.1

% C

han

ge

H1 2020-68.5%

4.4

3.4 -1.2 -3.5 -0.5 0.5-3.2

-37.0-54.5 -81.1 -72.9

-63.2

Jan Feb Mar Apr May Jun%

Ch

ange

2019 2020

H1 2020-51.9%

Intl pax % change

Dom pax% change

2019/2018 pax % change

Source: ACI (2020)

The Asia-Pacific factsheet 2 of 2

Summer months:

China is leading the recovery and passenger load factors continue to increase domestically

India, the world’s third largest aviation market continues to struggle especially with the surge in COVID-19 cases

Long term recovery:

Domestic: 2023International: 2024

@ 45% of baseline for 2020

Overview of current situation : Asia Pacific The overall situation in Asia continues to remain uncertain and possible international travel remains low

• Macau - is opening up to Mainland China flights towards the end Sept

• India - suspension of scheduled international flights till end of Sept 2020, ‘travel corridor’ (currently in place with the U.S, France & Germany)

• China - Civil Aviation Administration announced to review 14 countries to open international flights.

• Indonesia - announced the establishment of travel corridors with China, South Korea, and the United Arab Emirates (UAE) via specific points of entry, to

facilitate the resumption of official business and government travel. Travellers require a negative COVID-19 test result upon arrival to be exempt from the 14-day

quarantine.

• Singapore - announced for the resumption of general travel to Brunei and New Zealand from 1 September, Individuals arriving from Brunei and New Zealand

are subjected to a COVID-19 test and possible no quarantine if further criteria is met. Singapore plans more travel corridors to open with Japan and S Korea.

• Vietnam will gradually resume international commercial flights to six cities in Asia

• Malaysia allow expatriates and business passes from 23 countries to enter, based on certain criteria, however borders will continue to remain shut till year end

• India with rapid growth in Covid-19 numbers, we can only anticipate further restricted entry and exit to and from India.

• Globally, foreign ministers of the G20 countries have issued a statement agreeing to address the resumption of cross border travel, in a safe manner.

Relief Measures / Developments

• South Korea announced additional relief measures for the airport retail sector

o Extension of “concession rent suspension” now been extended to all airport retailers, regardless of size

o Duty free concessionaires contract terms at Incheon Int. Terminal changed from a minimum guarantee basis to variable sales formula

• Singapore extends support for aviation sector under the Enhanced Aviation Support Package till March 2021. The government will set aside S$187 million fiscal

relief to airlines, ground handlers, cargo agents and airport tenants through rental & wage rebates.

• Malaysia Airport Berhad announced a relief package aimed at assisting its retail tenants across its airport network.

• Bhutan to limit the spread of COVID 19 through cross border tobacco trade, have allowed for duty free cigarettes to be sold

domestically for the time being

• Hong Kong Airport Authority announced a two-month extension of its assistance measures package for companies operating at HKIA.

o Rent waivers for retail, catering tenants and those offering essential services

o Rent reductions for terminal tenants covering lounges and ancillary passenger services, commercial counters,

and cross-border transport

Major initiatives to support for the industry

Important APTRA Reports for Members

- 1. APTRA Covid-19 Regional Report Update – Published every 2-3 weeks

- offers a summary view to APAC borders re-opening or changes, if any “green lanes” for travel have emerged and if any relief

measures have been announced

- 2. APTRA Advocacy Report & Heat Map – Published Quarterly

- This quarterly report identifies key aspects of regulatory challenges spanning across Asia Pacific with a summary

of the significant issues that dominated Q2 2020.The purpose of the report is to raise the awareness of legislative

changes, to document the advocacy challenges we are facing as an industry

In addition to the 4 earlier advocacy campaigns (March – June) to appeal for financial support, relief measures, awareness of travel retail’s

position in the travel ecosystem and to campaign for clear guidelines with ICAO

2 Recent Campaigns to Support Travel Retail Industry

- APTRA Campaign to drive awareness around existing retail stock and changes in regulation

- APTRA has recently appealed to a number of government bodies whose regulations have still been imposed on the sale and

marketing of tobacco, even during Covid-19 environment. APTRA has appealed for delays and to have co-existence of old and

new tobacco packaging on shelves

- APTRA Campaign to understand further rules around travel

- Understanding that the lack of consistency in travel rules are inhibiting any travel, with quarantine times being differentiated.

- APTRA will look to liaise with ASEAN political bodies in the coming weeks

8.1% 7.4% 9.5% 5.7% 10.7% 8.0%

-56% -53% -58% -56%-69%

-58%

Mexico City(MEX)

Cancún(CUN)

Panama City(PTY)

São Paulo(GRU)

Bogotá(BOG) Top 5


Airport

business

Source: ACI (2020)


Revenue

share %

The LAC factsheet 1 of 2

Aero66%

Non-aero34%

Non-operate

0%

15–25m PAX

$2.57

$4.06

LAC Global


revenue per intl pax

5.9%

6.5%

CAGR % 2009-2019

Dom

Intl

Pax traffic

mix

Source: ACI (2020)

International31%

Domestic69%

4.3 3.6 4.2 3.6 4.6 6.1

-1.8 0.2-45.9

-98.4 -98.1 -96.2

% C

han

ge

H1 2020-55.2%

6.2 6.9 5.5 7.2 6.5 6.6

5.7 5.1 -39.3

-94.6 -93.9 -88.3


Ch

ange

2019 2020

H1 2020-50.3%


Source: ACI (2020)

Intl pax % change

Dom pax% change

The LAC factsheet 2 of 2

Summer months:

Slight improvements in Brazilian and Mexican domestic markets; Brazil remains one of the COVID-19 hotspots

Long term recovery:

Domestic: 2023 – 2024International: 2024 – 2025


Overview of current situation across “ASUTIL”

• In the next two months all airports will be open in LATAM

• Some countries like Ecuador with a negative PCR you are allowed without furher quarantine,

Uruguay receives people from Europe with negative PCR without quarantine , Brazil accepts

foreigners with a health insurance certificate.

• Airlines are restarting international flights to most of the countries, few are not restarting due

to small ammount of passengers

• Border Stores are open and slowly recovering the traffic on all borders including twin cities

Overview of major initiatives to win support for the industry

• Joint Statement issued with ACI LAC 4/20

• Joint Statemente issued with the Brazilian National Association of Airport Concessionaires

• Letter to all ICAO representatives in each country with the recomendations for global

standards and recovery protocol

• Letter for the Uruguayan goverment to facilitate the pre sale on airport DF before travelling

and the posibility of selling products to local people paying a tax at borders

• Letter to the Brazilian Goverment to reduce costs of IT information for border shops

(SEPRO)

• Letter to the Brazilian Goverment for updating the DF allowance for Brazilians in border

shop to harmonize with border allowance coming from other countries

• DF Operators joined a workforce with Costums in order to modernize the DF legislation

including evaluating Home Delivery from the store

• Next step try to harmonize in LATAM the same protocols in each country

and airport, letter to be send

4.6% 6.3% 5.2% 3.4% 6.2% 5.1%

-62% -59% -62% -56% -64% -61%

New York(JFK) Toronto (YYZ)

Los Angeles(LAX) Miami (MIA)

San Francisco(SFO) Top 5


Airport business


Revenue share %

>40m PAX

The North America factsheet 1 of 2

Aero59%

Non-aero35%

Non-operate

6%

$1.14$4.06

North America Global

Duty free concession revenue per intl pax

Source: ACI (2020)

Pax traffic

mix

5.1%

2.8%

CAGR % 2009-2019

Dom

Intl

Source: ACI (2020)

International16%

Domestic84%

5.7 4.2 3.8 5.9 4.1 3.3

1.1 -1.4

-52.5

-98.2 -98.0 -96.3

% C

han

ge

H1 2020-60.6%

3.6 3.0 4.9 3.3 4.6 2.8

5.3 6.5

-50.5

-95.0 -88.8-78.1


Ch

ange

2019 2020

H1 2020-53.6%

Intl pax % change

Dom pax% change


Source: ACI (2020)

The North America factsheet 2 of 2

Summer months:

Start of recovery in May and even more in June in the US but not in Canada

Long term recovery:

Domestic: 2023 International: 2024


Overview of the situation in the Americas

United States: • Still high number of COVID-19 cases;• Out of State Visitor restrictions in place requiring COVID-19-tests and/or quarantine;• Most airports operational. Domestic traffic recovering but growth trend impacted by new travel restrictions;• Still very few international flights. • US election creates uncertainty re. policy direction and support surrounding COVID-19 challenges;

Central America:• Borders between Mexico and the U.S. still closed for non-essential travel;• Air traffic between Mexico and U.S. is growing. Tourist destinations in Mexico show good recovery thanks to

U.S. tourists;Caribbean:

• Puerto Rico and Dom. Republic air traffic has picked up nicely and shows some good rate of recovery;• U.S. tourists are banned to travel to the Bahamas. Other islands have imposed strict restrictions for visitors;• Ports in the Caribbean will re-open once the cruise business resumes operation but not before November;

South America:• Most airports in South America still closed for int’l traffic with exception of Brazil, Uruguay, Ecuador and now

Argentina;• Other airports are expected to re-open in October for int’l flights such as Colombia, Chile and Peru

Cruise business:• MSC, Costa and some other smaller European based cruise lines have resumed operation;• U.S. based cruise lines still under CDC’s ‘no sail’ order; unlikely they will start operation before Nov 2020.

Overview of major initiatives to win

support for the industry

• The IAADFS has primarily focused on trying to obtain financial relief for the Duty Free and Travel Retail industry due to the impacts from the pandemic;

• To grow the chance to obtain the needed federal assistance, we coordinated the effort with other airport concessionaire organizations;

• A letter was sent on 7th August 2020 to Senate and House leaders requesting the inclusion of important federal assistance as part of the relief bill currently being assembled;

• The request included critical assistance in the amount of USD 13.5 billion for airports obligating them to pass through of a portion of this amount to its concessionaires;

• The letter was signed by representatives of airports and a broad group of airport concessionaires: ACI North America (ACI-NA), the American Association of Airport Executives (AAAE), the Airport Restaurant and Retail Association (ARRA), the Airport Minority Advisory Council (AMAC), the American Car Rental Association (ACRA), the International Association of Airport Duty Free Shops (IAADFS) and the National Parking Association (NPA);

Overview of current situation in CANADA

Border and Government Overview

Canada /US Border has been closed to all but essential workers since March 21st and closure has been extended to at least October 21st (likely to extend well beyond)

• Over 50% of land border stores are completely closed – those open to essential workers have very little traffic

• Prorogued Parliament until Sept. 23 — stalls any unfinished business, including bills and committees, ongoing in the current session

• Speech from the Throne and economic update on how to best move forward with the country’s recovery from the COVID-19 pandemic which could trigger a federal election

• Minister of Finance transition

Overview of major initiatives to win support for

the industryFDFA Work

• Rent Relief strong advocacy efforts resulted in rent relief for stores with federal landlords.

• Developed Duty Free Economic Package • Highlights both Immediate and Long Term measures to ensure the viability of land border duty free stores through

and beyond the border closureImmediate measures:

• Duty Free Interest-Free Loan Program• Extension of the Wage Subsidy Program • Extension of the Rent Relief Program

Back to Business Measures:• Creation of a Canadian Duty Free Zone• Duty Free Export Designation• Return of the Visitor Rebate Program• Red Tape Reduction

• Advocacy efforts include meetings with all levels of government and Grassroots efforts with all store owners meeting with their Members of Parliament

• Pre-budget submission• Expiring Inventory

8.0% 11.5% 8.6% 9.0% 8.8% 8.9%

-56% -52%-67%

-59% -56% -57%

Dubai (DXB) Doha (DOH)Tel-Aviv

(TLV) Jeddah (JED)Abu Dhabi

(AUH) Top 5


Airport

business

Source: ACI (2020)


Revenue

share %

The Middle East factsheet 1 of 2

$6.17

$4.06

Middle East Global

Aero56% Non-aero

43%

Non-operate

1%



8.2%

6.5%

CAGR % 2009-2019

Intl

Dom

Pax traffic

mix

Source: ACI (2020)

International75%

Domestic25%

0.95

2.72 -0.65 3.22 -1.068.565.8

1.6

-58.9

-98.4 -97.9 -95.3

% C

han

ge

H1 2020-57.4%

-5.74.6 0.2 3.9

9.4 10.314.9

3.6 -44.7

-99.5 -98.1

-74.8


Ch

ange

2019 2020

H1 2020-50.8%

Intl pax % change

Dom pax% change


Source: ACI (2020)

The Middle East factsheet 2 of 2

Summer months:

Markets like Saudi Arabia and Israel showing signs of recovery in domestic markets; However, international traffic uptick very limited

Long term recovery:

Domestic: 2023International: 2024 – 2025


3.7%12.3%

2.8% 5.2% 1.1% 4.5%

-56% -58% -59% -59% -56% -57%

Cairo (CAI)Addis Ababa

(ADD*)Johannesburg

(JNB)Casablanca

(CMN)Hurghada

(HRG) Top 5


Aero60%

Non-aero32%

Non-operate8%

Airport

business

Source: ACI (2020)


Revenue

share %

$1.71$4.06

Africa Global



*Estimated

15–25m PAX

The Africa factsheet 1 of 2

4.3%

3.0%

CAGR % 2009-2019

Intl

Dom

Pax traffic

mix

Source: ACI (2020)

International67%

Domestic33%

9% 11% 8% 9% 2%13%

8% 7%

-51% -99% -99% -96%

% c

han

ge

H1 2020-57.2%

4.9 3.81

6.047.53 0.7 10.73

9 9

-36

-98 -96 -94


Ch

ange

2019 2020

H1 2020-51.8%

Intl pax % change

Dom pax% change


Source: ACI (2020)

The Africa factsheet 2 of 2

Summer months:

Largely dependent on international traffic. Because of the high dependency on international traffic, downside risks point to a lower scenario

Long term recovery:



Overview of current situation across

“Middle East & Africa”MIDDLE EAST

- Some International Airports (Jordan, Lebanon, Kuwait, Dubai, and Iraq) are open to visitors, while allcountries apply a set of health and safety regulations for entering the countries.

- Saudi Arabia, Qatar, Yemen, Bahrain and Oman are completely closed to international travel with exceptionsfor residents, cargo and humanitarian cases.

- Allowed international arrivals must carry a negative COVID-19 PCR test before departure and must take atest prior to their entry to their destinations.

- Border crossing within GCC countries is banned except for citizens who wishes to travel back to their homecountry (One-way)

- Jordan: Land Borders and seaports remains closed while, QAIA resumed flights as of 10th of September.- The government announced three lists (Green, Yellow, Red) based on COVID-19 Risk Levels in those

countries.- Green List travelers are allowed to enter the country without quarantine, the list includes

(Algeria, Austria, Canada, Cyprus, Denmark, Germany, Greece, Hong Kong, Hungary,Italy, Lithuania, Malaysia, Poland, Turkey, Thailand, Tunisia), while health measures apply.

Overview of current situation across

“Middle East & Africa”

- Yellow List includes (Malta, Morocco, Netherlands, Saudi Arabia, Switzerland, UAE, UK, Egypt, Sudan, Syria,Yemen)

- Red List includes (Bahrain, Belgium, Czech Republic, France, Iraq, Palestine, Kuwait, Lebanon, Libya, Oman,Qatar, Romania, Israel, Russia, Spain, Ukraine, USA)

- Health measures and Negative COVID-19 PCR Test is required from every country in the three list, whilerequired quarantine is different from one list to another.

AFRICA

- Some International Airports (Morocco, Algeria, Libya, Niger, South Africa, Uganda..etc.) are still witnessing acomplete suspension on flights and duty free service due to the spread of virus.

- Egypt, Nigeria, Mali, Kenya, Somalia, Ghana, Zambia and some other African countries have resumed theirinternational flights with strict health and safety measures implemented for international arrivals.

- Allowed international arrivals must carry a negative COVID-19 PCR test beforedeparture and must take a test prior to their entry to their destinations.

2.3% 5.1% 2.8% 3.5% 4.4% 3.5%

-60% -62% -62% -64% -61% -62%

London (LHR)Amsterdam

(AMS) Paris (CDG)Frankfurt

(FRA) Madrid (MAD) Top 5

2009-2019 CAGR % 2020/2019 H1 % Change


Airport business

Source: ACI (2020)


Revenue share %

Duty free concession revenue per intl pax

>40m PAX

The Europe factsheet 1 of 2

Aero55%

Non-aero41%

Non-operate

4%

$2.53

$4.06

Europe Global

5.4%

2.9%

CAGR % 2009-2019

Intl

Dom

Pax traffic

mix

Source: ACI (2020)

International73%

Domestic26%

5.61 5.86 4.52 6.87 4.24 5.83

4 3

-60

-99 -99 -96

% C

han

ge

H1 2020-65.9%

1.57 2.91 2.87 -0.94 0.31 1.47

-1 -3-53

-96 -95-81


Ch

ange

2019 2020

H1 2020-58.2%

Intl pax % change

Dom pax% change

Source: ACI (2020)


The Europe factsheet 2 of 2

677

766 772791

816

875 875

799 800

733761

210

278306

362 373424

0

100

200

300

400

500

600

700

800

900

1,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mil

lio

n p

as

se

ng

ers

Uncertainty

Summer months:

Uptick in Russian and Turkish domestic markets and some uptick in the Schengen Area following an easing of restrictions

Long term recovery:



Overview of current situation across Europe

• Intra-EU travel re-started gradually with internal borders lifted end June – situation remains very fluid: o Aviation re-started with reduced capacity (airport pax traffic down -90% end June, -67% end Aug vs. 2019) o Ferry traffic resumed in Europe, with overall better recovery in terms of pax traffic numbers (for example

in the Nordics approx. -50% vs. 2019)o Cruise business currently at a standstill in Europe – a few local short cruise routes have resumed

• Non-EU travel: Very short EU ‘Green list’ to reopen external EU borders: Australia; Canada; Georgia; Japan; New Zealand; Rwanda; South Korea; Thailand; Tunisia; Uruguay; China, subject to confirmation of reciprocity. Member States may diverge from this list (UK travel corridors).

• Lessons from the Summer:o DF&TR shops have partially re-opened o Retailers’ focus on strict hygiene and health protocols for staff and pax in DF&TR shops o Agility in terms of offering product mix and promotions to adapt to new pax mixo Overall, spent per pax increased in airport and ferry retail business

– But did not make up for loss in traffic

• Increase in travel restrictions / quarantine measures are hampering the recovery.

Overview of major initiatives to win support for

the industry

• Support to ETRC members via weekly reports, ad-hoc communications and creation of ETRC COVID-19 dedicated portal

• Organisation of Members Webinars to exchange information on situation, forecasts, trends and best practices

• On 4 September, the EU Commission adopted a proposal for a Council Recommendation for Member States to agree on:

• Common criteria and common colour code map• Common approach for travellers from high-risk areas with COVID-19 testing upon

arrival being the preferred option over quarantine✓ ETRC joining travel and tourism industry call to back EU proposal against

quarantine measures

• COVID-19 is providing an opportunity to rethink the EU approach in terms of airport economics and sustainability:✓ Participation to EU Aviation round table hosted by European Commission that will

present recommendations for Coronavirus recovery strategy next month✓ Cooperation with ACI EUROPE on lobbying campaign to secure Arrivals Duty Free

in the EU
http://www.etrc.org/current-issues/covid-19-.html

Documents

The Asia-Pacific factsheetdfworldcouncil.com/wp-content/uploads/2020/09/09.17... · 2020. 9. 17. · Overview of current situation : Asia Pacific The overall situation in Asia continues