Abu Dhabi airport Duty Free revenue rises 19%

ABU DHABI — Duty Free retail turnover at Abu Dhabi International Airport grew by 19 per cent to touch $75 million during the first half of 2010, outperforming the airport’s passenger growth of 11.7 per cent over the same period.

By T. Ramavarman

Published: Mon 9 Aug 2010, 10:55 PM

Last updated: Mon 6 Apr 2015, 4:45 PM

The airport also recoreded an increase of 7.2 per cent in per passenger spend amounting to $14.47, the Abu Dhabi Airport Company (ADAC) said in a Press release issued here on Sunday.

Duty Free outlets at the airport had posted a revenue of over Dh 500 million last year marking year-on-year increase of 12.7 per cent over the revenue of 2008. This was considered a significant achievement then as this much revenue was made against the backdrop of the global financial recession and the consequent tough challenges being faced by retailers worldwide.

Last year also the pace of growth in the revenue from the duty free outlets was higher than that of passenger traffic which recorded a 7.5 per cent growth, according to ADAC sources. The company had then budgeted an 18 per cent growth in turnover in 2010 based on an estimated 12 per cent growth in passenger figures.

Commenting on this year’s growth Huraiz Almur bin Huraiz, Chief Commercial Officer of ADAC said, ‘‘Retail spending at our airport is significantly stronger than passenger growth, a clear sign that we are succeeding in encouraging travelers to spend more. We believe two key trends are at play; firstly consumer confidence is returning, following the impact of the global economic recession, and secondly ADAC’s investment program in Terminal 1 and the upgraded retail offerings in Terminal 3 are delivering results. Our Shop-Dine-Unwind retail proposition is really reaching out to our customers.” All categories have performed strongly, with Luxury, Perfume & Cosmetics, Liquor, Gold and Electronics seeing particularly strong returns, according to the release. — ramavarman@khaleejtimes

More news from Local Business