03 August 2006 - The Moodie Davitt Report

Transcription

THURSDAY 3 AUGUST 2006
WELCOME to The Moodie Report.
FAST, FACTUAL, FREE
PERSONALITIES OF THE WEEK
We make it our practice to try to attend as many industry openings as possible,
wherever they are in the world. There’s nothing like seeing an airport flow first hand to
understand how a consumer perceives the facility or walking a store with a retailer for
developing a real understanding of the business.
Last weekend our correspondent Wendy Gallagher headed to Curaçao, as the tiny
Dutch island, 80km north of Venezuela, turned on the style to celebrate its new US$44
million terminal. Curaçao Airport Partners, in which Alterra Partners (Bechtel and the
Changi Airport Group) has a 51% share, has worked wonders in developing what it
claims to be “the most modern and convenient airport in the Caribbean” but simultaneously creating a tangible Sense of Place and a
INSIDE THE MOODIE REPORT
highly original concessions offer.
Soft border sales in Canada ... 5
Five contest Indian tender ... 9
Julian Levy leaves DFS Group ... 11
New Cairo terminal tender issued ... 13
Concessionaires such as Aldeasa and Colombian Emeralds and the marvellous Café Britt
(which also operates at Lima Airport, Peru)
have all responded to the airport company’s
vision of a unique Caribbean gateway. Take a look at Wendy’s feature and extensive photos
at www.TheMoodieReport.com. You’ll like what you see. Better still, take a visit to Curaçao.
You may never leave.
Another big airport opening is imminent. This time we’re talking Thailand where
Bangkok’s long-awaited new international airport at Suvarnabhumi is all set for its official
start-up on 28 September. It’s been a long-time coming but the critics – and there have
been many – of the project look like being silenced after a largely trouble-free test day
last Saturday that saw the airport operate its first commercial domestic flights.
The retail offering is in the exclusive hands of King Power International Group, whose
Deputy Managing Director Susan Whelan and her team have been working around the
clock in recent months to be ready for opening. In fact not just one but two openings –
King Power opens its extraordinarily ambitious leisure-to-hotel-to-retail downtown
Bangkok complex on 18 August.
We’ve sneak previewed the retail operations at both locations – including some great
work from Robbie Gill’s The Design Solution – and we’re confident in predicting that
the Asia Pacific duty free industry is about to witness an exciting new dimension.
This issue includes some interesting traffic and tourism numbers – as always in such
Walter Abernathy: The CEO of
Curaçao Airport
COLM MCLOUGHPartners
LIN:
THE took
DUBAI
every mini-crisis
DUTY
FREE MAN-in
his stride
last
AGING
DIRECTOR
weekend
as
THIS WEEK media
and industry A
ANNOUNCED
attention
centered
NEW
DAILY
on
the
island’s
SALES RECORD OF
vibrant and
excellent
new airUS$4.9
MILLION,
POSTED
ON THE
port
terminal.
RETAILER’S 22ND ANNIVERSARY.
WHAT A PERFORMANCE – SOME
Maurice
Burke:
Duty
+57%
AHEAD
OF Bahrain
THE PREVIOUS
Free’s genial
General Manager
24-HOUR
RECORD.
this week announced “a first
for the region if
not the world”
with the winner of
the summer’s car
raffle winning not
just one but four
4x4 cars. A suitably celebratory
gesture for the retailer’s bestever first-half results.
Julian Levy: After 18 years
with DFS Group the retailer’s
US Group President is moving on
(page 11) following an organisational realignment.
One hopes and
suspects his rich
expertise won’t be
lost to the industry for long.
a global industry a mix of good and bad. Chinese retailers will read the latest Japanese
travel numbers with pleasure while their Hawaiian counterparts will grimace. The antiJapanese demonstrations in Chinese cities last year are already consigned to the past as
first-half numbers rose +25.8% year-on-year. But in Hawaii June figures released this
week paint a horrible picture. Visitor arrivals from the state’s key spending nationality
slumped -13.4% year-on-year in the month, topping off a first-half decline of -8.8%.
Encouragingly Japan Airlines said this week that it will soon begin revamping its Hawaii
services in a move to position the destination as its primary base for the outbound travel
market. The airline had earlier suspended its unprofitable Honolulu services from
regional airports such as Sapporo and Fukuoka as part of a strict restructuring. The
latest initiative can’t come soon enough for DFS and other Hawaiian travel retailers.
The Moodie Report© is published by Moodie International. All rights reserved.
Please send any comments or stories to [email protected]
Page 1
The Moodie Report
THE MOODIE REPORT
Thursday 3 August 2006
DATA ROOM – TRAFFIC RESULTS
Selected traffic numbers reported in the past week
Country
Airline/Airport
July ’06 vs July ’05 (%)
Latvia
UK
Riga International Airport
Monarch Scheduled
+34.7 (international)
+23.7 (total pax)
Country
Airline/Airport
June ’06 vs June ’05 (%)
Africa
Asia Pacific
Australia
Bahrain
Czech Republic
Europe
Europe
France
France
France
Germany
Germany
Greece
Iceland
International
Japan
Kuwait
Latin America
Latvia
Macau
Middle East
North America
IATA
IATA
Brisbane Airport
Bahrain International Airport
CSA Czech Airlines
Association of European Airlines
IATA
EuroAirport Basel-Mulhouse
Paris Charles de Gaulle Airport
Paris Orly Airport
Hamburg Airport
Munich Airport
Athens International Airport
Keflavik Leifur Eiríksson Int. Airport
IATA
Tokyo Narita Airport
Kuwait International Airport
IATA
Riga International Airport
Macau International Airport
IATA
IATA
+11.9 (RPK)
+5.2 (RPK)
+27.3 (total pax)
+5.2 (total pax)
+4.8 (total pax)
+6.2 (RPK)
+33.9 (total pax)
+6.2 (total pax)
+2.4 (total pax)
+10.5 (total pax)
+6.5 (RPK)
+10.0 (total pax)
-4.1 (RPK)
+9.3 (total pax)
+17.1 (RPK)
+6.8 (RPK)
Note: ‘total pax’ may include domestic traffic
Source: ©The Moodie Report
HONG KONG. Total passenger
numbers at Hong Kong International
Airport rose +10.3% in June to
3,642,000. For the April–June quarter
numbers rose +10.5% to 10,986,000.
For the 12 months ended June, the
increase was +8.7% to 42,646,000.
INTERNATIONAL. International passenger traffic for the first six
months of 2006 grew by +6.7%, the
International Air Transport Association
(IATA) reported last week. For the
month of June, passenger numbers
continued the pattern of strong and
stable growth seen over the past 18
months with a +6.5% year-on-year
expansion over June 2005, said IATA.
“The bottom line is all about oil,” said
IATA Director General and CEO
Giovanni Bisignani. “Prices continue at
near record levels and we expect a fuel
bill of US$112 billion this year at an
average price of US$66 per barrel.
Increased political instability in the
Middle East does not bode well for a
price drop any time soon. The good
news is that neither the extraordinary
price of oil nor the inching-up of
interest rates negatively impacted
demand.”
Bisignani continued: “The revenue
environment is
Region
Jun 2006
Jan–Jun 2006
strong. In each of
Africa
+11.9%
+7.6%
the last three years,
Asia Pacific
+5.2%
+6.2%
revenues increased
Europe
+6.2%
+6.0%
+10%. And careful
Latin America
–4.1%
+1.9%
capacity manage+17.1%
+17.3%
Middle East
ment has seen
North America
+6.8%
+5.7%
global load factors
+6.5%
+6.7%
Total
move about the
75% level for the
Note: Figures are in RPKs
Source: IATA; The Moodie Report
first half of the year.
Nonetheless, airlines will still end the year US$3 billion in the red.”
IATA traffic growth, June 2006 vs June 2005
SINGAPORE.
Passenger traffic at Singapore Changi Airport
rose +9.1% year-on-year in the first half of 2006 to 16.8 million, the
Civil Aviation Authority of Singapore (CAAS) announced this week.
June saw the highest monthly passenger movements this year.
Passenger numbers were consistently high during the month, the
CAAS said, with figures exceeding 100,000 every weekend (Friday
through Sunday). June saw a +6.2% rise over the same month last year
to 2.98 million.
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The Moodie Report
Selected traffic numbers reported in the past week (continued)
Country
Airline/Airport/Association
June ’06 vs June ’05 (%)
Singapore
Slovakia
South Africa
South Africa
Thailand
UAE
US
Changi Airport
Kosice Airport
Cape Town International Airport
Johannesburg International Airport
Thai Airways International
Sharjah International Airport
Air Transport Assoc. (14 airlines)
+6.2 (total pax)
+14.0 (total pax)
+6.5 (total pax)
+45.6 (total pax)
-2.4 (total pax)
More than 120 new scheduled weekly
flights were launched at the airport
during the year from 1 July 2005 to
30 June 2006. Changi Airport’s air hub
connectivity was also enhanced with
new city links added to its network.
Between 1 July 2005 and 30 June 2006
new destinations such as Islamabad,
Lahore, Abu Dhabi, Haikou and Tianjin
were added to the network.
CAAS said it expects the rise in routes,
flights and passengers to continue. Last
week Singapore Airlines launched new
flights to Milan and Barcelona, and Cebu Pacific, a Philippine low-cost carrier, will be commencing operations at the
Budget Terminal in late August. As at 1 July Changi Airport is served by more than 80 airlines with flights connecting
to more than 180 cities in 57 countries.
Note: ‘total pax’ may include domestic traffic
Singapore Changi Airport
Passenger movements January–June 2006
January
February
March
April
May
June
Total
2006
2005
Change
on year
2,837,001
2,545,676
2,847,456
2,850,395
2,784,615
2,980,106
16,845,249
2,532,594
2,307,000
2,628,115
2,561,634
2,608,397
2,806,185
15,443,925
+12.0%
+10.3%
+8.3%
+11.3%
+6.8%
+6.2%
+9.1%
‘Passenger movements’ is defined as arriving plus departing
passengers, plus transit passengers counted once.
Source: Civil Aviation Authority of Singapore, The Moodie Report
CAAS Director-General of Civil Aviation Wong Woon Liong said:
“CAAS is continuously working with our airline partners to mount
new flights to and through Changi Airport. We also appreciate that
the airline industry is currently operating in a very difficult and
challenging business environment, specifically the record-high fuel
prices which have suppressed yields. Hence CAAS will continue in
its efforts to proactively seek innovative ways to help airlines reduce
operating costs.”
UAE. Sharjah International Airport posted a +37.2% year-on-year
hike in passenger traffic for the first half of 2006. The fast-expanding
airport handled 1,423,007 passengers in the first six months. Sharjah
Airport Authority Director Ali Salem Al Midfa said: “From the
growing airport traffic it is quite evident that the loyalty and
confidence of passengers and airlines at Sharjah Airport is going to
expand further to accommodate eight million passengers annually.
Dufry is the duty free retailer at the airport.
THE MOODIE REPORT
DATA ROOM – TRAVEL & TOURISM NEWS
FRANCE/UK. Eurostar’s high speed rail link between London
and Paris is putting increasing pressure on the airlines serving the
route, according to a new JRA Business Traveller Poll. In the first six
months of the year air passenger numbers on this hyper-competitive
route were up by just +0.6% year-on-year, Geneva-based analysts JRA
said. In contrast Eurostar has just announced an +11% increase in
business ticket sales for the period.
In the latest JRA Business Traveller poll, executives in five countries
were asked what they found most irksome about air travel on their last
trip. The UK sample chose delays (14%), congestion (29%) and time
spent (31%). JRA said: “It appears that the attractions [of Eurostar] for
business people are obvious: city centre departures and arrivals, short
check-in times and less heavy-handed security, with almost identical
total journey times. The competitive pressure on airlines can only
increase. Eurostar will open its new London terminus at St Pancras in
the autumn of 2007 and will offer a city-to-city journey time of just
over two hours.”
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The Moodie Report
But the train company is not the only beneficiary, JRA said. 80% of the 1.2 million travellers on the London to Paris
route in the first half went via London Heathrow to Paris Charles de Gaulle. But there is a growing preference for the
London City–Orly route, JRA noted. Passenger numbers from London City to Orly were up +15.6% in the first half of
this year; Heathrow traffic was down -1.7%.
JRA’s route forecasts for London to Paris in 2006 indicate a rise of +2.2% in total passenger numbers with the strongest
business traveller performance coming from London City to Orly, up +13.1% this year but starting to fade as the first
quarter of 2007 gets under way. Another riser is the London Luton to Charles de Gaulle connection. Until the middle
of 2002 this was a tourist route of little competitive significance, JRA said. “Today as a business/vacation route it
accounts for about 12% of the traffic; it is in recovery and is growing again. It was up over +8% in the first six months
of this year and the forecast for 2006 as a whole will be substantially higher with solid, possibly double-digit, growth
projected out to 2010.”
Note: To see the forecasts online go to www.air4casts.com/newsletter/london_paris.php. This link directs readers
straight to the detail of the forecasts.
From the publisher: The Moodie Report and Air4casts-JRA are co-operating on a unique forecasting project. By
clicking on the Air4casts-JRA icon on our home page readers can connect directly to a dedicated section of the
Air4casts Online international passenger summaries at no cost.
In that section they can access three-month international forecasts for:
n the six leading international passenger countries (UK, USA, Germany, France, China and Japan)
n ten of the biggest passenger cities including London, Paris, New York and Tokyo
n the six global regions plus
n a world summary.
JAPAN. Maintaining the momentum generated in May, outbound traffic from Japan continued in June, increasing
+4.8% compared to a year ago, Travel Journal International Online (TJI) reported this week. According to the Japan
National Tourist Organization (JNTO), the count of Japanese travellers heading abroad during the month reached a
provisional 1,420,000, the third highest ever for the month of June, behind peak year 2001 and 2000. JNTO said that
the FIFA World Cup in Germany and the strengthening of the Japanese Yen against certain other global currencies
helped spur travel in June. In the first six months of 2006, the number of Japanese overseas travellers reached
8,392,763, up +1.02% compared to a year ago. The return of travel demand for China, which posted a +25.8% rise to
308,500, has been a major factor in the improvement.
US.
June visitor numbers to Hawaii just published reveal yet another
month of year-on-year decline in Japanese arrivals. The number of
Japanese visitors decreased -13.4% year-on-year compared to the same
period last year to 107,224. Cumulatively that meant a six-month fall of
-8.8% to 667,147, according to the Department of Business, Economic
Development & Tourism (DBEDT). That spells further bad news for
Hawaii’s leading travel retailer, LVMH subsidiary DFS Group, and
others dependent on the Japanese spend.
Commenting on the group’s six-month results last month LVMH Chief
Financial Officer Jean-Jacques Guiony said sales in Hawaii had been
soft this year. “Hawaii has to improve. The big question is the weakness
of the Yen, which doesn’t help our Japanese-driven businesses.” The Yen
stands at ¥115.07 to the US Dollar, a slight improvement in recent days
but a far cry from two years ago when it stood at just over the ¥100 mark.
For the six months to June domestic arrivals to Hawaii increased +4.6%
and international arrivals decreased -3.8%, resulting in a +2.2% rise in
total arrivals, according to DBEDT. Canada showed a +12.1% rise but
the Japanese figure is the one that matters from a travel retail perspective. Japanese visitors spent a total of US$1 billion in the first six
months of 2006, -2.2% down on the same period last year. They
continued to spend the most on a daily basis at US$271 per person, an
increase of +8.7% – so those who are still coming are spending.
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The Moodie Report
US. Non-resident arrivals through the country’s top 15
US port of entry (all modes) of non-resident
arrivals January–April 2006
Rank
Port
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
New York, NY
Miami, FL
Los Angeles, CA
Honolulu, HI
Newark, NJ
Agana, GU
San Francisco, CA
Chicago, IL
Atlanta, GA
Washington, DC
Orlando, FL
Houston, TX
Detroit, MI
Boston, MA
Dallas, TX
Total
Arrivals
Change on year
910,920
805,779
672,574
486,121
392,560
373,312
366,102
360,095
257,301
202,275
173,128
138,143
126,840
120,509
107,280
6,415,890
–4%
0%
–1%
–6%
–3%
+7%
+3%
–2%
+5%
–7%
–8%
+5%
+12%
0%
+7%
0%
Source: US Dept of Commerce – Office of Travel & Tourism Industries
THE MOODIE REPORT
airports for foreign visitors were flat in the first four months
of 2006, according to the Office of Travel & Tourism
Industries. Four of the top five posted decreases (see table)
and the fifth, Miami International Airport, was flat. The
biggest fall was at Orlando, where total foreign arrivals were
down -8% for the first four months, confirming trade
opinion that the British market into the US is soft this year.
For the four months to April, total overseas arrivals into the
US were up by just +0.2% to 6,415,890. Visitors from
Western Europe were off by -4.3% to 2,881,753. Canadian
numbers rose +7.4% to 4,972,775 while Mexican arrivals
were up +32.3% to 1,596,607. The Mexican and Canadian
increases brought the total arrivals figure to 12,985,281, up
by +6.1%.
UK visitor arrivals, counted separately, fell -5.4% in the
period to 1,307,919. Japanese visitors decreased by -1.5%
to 1,194,755 and South Koreans rose +8.1% to 227,464.
Visitors from the PRC and Hong Kong increased by
+13.9% to 131,172.
DATA ROOM – RETAIL & COMMERCIAL SALES RESULTS
CANADA. Sales at the country’s land border duty free stores have been soft during the first five months, a pattern
disappointingly continued in the usually bumper month of May. That’s the sombre picture to emerge from new Canada
Border Services Agency (CBSA) figures revealed by the Frontier Duty Free Association (FDFA). FDFA Executive
Director Laurie Karson said: “It should be noted that the May sales statistics represent the ‘kick-off’ of the summer
season for land border free stores – the high season for duty free sales.
“Overall, the national sales figures have declined from this time last year, and this can be attributed to gas prices, the
(Canadian) Dollar, and continued confusion at border crossings over identification. However, the Western sales figures
nationally from this time last year have increased (i.e. Alberta, and
British Columbia stores) due to a strong economy in that area of the
country.” National sales figures decreased by approximately C$2.6
million year-on-year or -4.78% for January-May 2006. For the month
of May 2006 alone, the sales figures also saw an overall year-on-year
decrease of around C$1.2 million.
Overall sales figures nationally for January/May 2006 were C$52.8
million. Tobacco (mainly Canadian brands), worth 31% of the mix,
declined by -8.6% to C$15.7 million. The other key category, wines
and spirits (38.1%) fell by -2% to C$20.1 million. For May 2006 the
only national sales increase was in the leathergoods category.
Overall the main categories that dominated sales in land border duty
free (based on sales mix %) for January–May were:
1 Liquor/wines (38.1%)
4 Food (4.6%)
2 Tobacco (31%)
5 Jewellery (2.1%)
3 Perfume/cosmetics (13.8%)
Regional sales analysis – Canadian land border duty free
Prairie Region
n Overall the Prairie sales figures decreased during January–May by
approximately C$23,000 or -0.66% compared with last year to
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The Moodie Report
C$3.5 million. For the month of May 2006 compared to May 2005, sales dropped by C$16,000.
n Sectors to post an increase in sales for the period were tobacco, food, souvenirs, and the ‘other’ category.
n For May 2006, the Prairie stores’ sales increases were in the liquor, tobacco, other, leather, food and glassware/crystal
categories.
nThere were slight decreases noted in all other categories.
Pacific Region
n Overall the Pacific stores’ sales figures increased by approximately C$178,000 or +3.0% for the five-month period to
C$6.1 million. But for the month of May 2006 sales dropped by around -2.02% or C$30,000.
n Categories to register increases in sales for January-May were tobacco, souvenirs, food, arts/crafts, liquor, beer, jewellery and clothing.
n For May 2006 alone, beer, tobacco, perfume and clothing posted higher sales.
n There were slight decreases noted in all other categories.
Ontario
n Ontario sales decreased by approximately C$2.9 million (-5.4%) to C$34.5 million for January–May compared with
the same period in 2005. For the month of May a fall of C$857,000 or -9.6% was experienced.
n Beer, leathergoods and the ‘other’ category grew.
n For May alone, leathergoods was the only growth category.
n There were slight decreases noted in all other product sectors.
Atlantic Region
n Atlantic sales figures decreased by approximately C$22,000 (-2.7%) for January through May to C$780,828. For the
month of May sales figures dropped by around -10.3% or C$20,000 across all stores.
n Categories to grow during January–May were beer and the arts/craft/carvings sector.
n For May beer, perfume, leathergoods, and food posted increases.
n There were slight decreases noted in all other categories
Quebec
n The Quebec sales figures decreased by approximately -8.5% (C$908,000) for the five months to May to C$9.8 million. For the month of May sales dropped by C$295,000 year-on-year, a fall of -10.3%.
n Jewellery was the only category to defy the downward trend in the first five months.
n Jewellery and the ‘other’ category both grew in May.
n There were slight decreases noted in all other categories
Note: The 22nd Annual Convention of the FDFA will be held in
Niagara Falls, Ontario on 12–15 November. For details go to
www.dutyfreecanada.com or e-mail [email protected]
DENMARK. Copenhagen Airports (CPH) has unveiled a strong
commercial performance for the first half, with concession revenues
rising across its airport portfolio by +12.4% year-on-year to DK424.5
million (US$72.9 million). This was attributed to new retail and F&B
offerings, particularly at flagship location Copenhagen Airport.
At Copenhagen Airport total commercial revenue rose +13.3% to
DK377.1 million (US$64.7 million). The Shopping Centre (including
duty free run by The Nuance Group) saw a +9.4% rise in revenues to
DK265.4 million (US$45.6 million). Parking revenue rose +27.4% to
DK87.5 million (US$15 million) and other revenues were up by
+12.0% to DK24.2 million (US$4.2 million).
The Shopping Centre performance was driven by increased passenger
numbers as well as “new commercial offerings with retail and food &
beverage to better meet the different demands and to service the
growing number of departures passengers travelling on economy class
or low-cost tickets without access to airline lounges or inflight meals.”
The duty free contract is currently out to tender with a decision
expected later this month on the winner.
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The Moodie Report
Rent from premises rose +11.9% to DK76.2 million (US$13.1 million) as a result of new facilities let and contractual rent
increases. Numbers at Copenhagen Airport rose +6.3% year-on-year in the period to 10 million. Intra-Scandinavian
passenger traffic rose +3.7%, European passengers were up +8.3% and domestic numbers rose by +12.6%. But importantly from a travel retail perspective intercontinental passenger numbers fell -3.8% over the same period last year.
Groupwide, aeronautical revenues rose just +1% to DK700.1 million (US$121 million) with overall revenues up by
+4.8% to DK1395.1 million (US$240 million). Revenues from CPH’s international activities (which include Hainan,
China; Newcastle International, UK; ASUR, Mexico) rose +18.3% to DK19.4 million (US$3.3 million).
JAPAN. The newly-opened South Wing and Satellite 5 at Narita International Airport have boosted the airport’s
Terminal 1 daily revenues by +95% year-on-year for the period of trading to date. Terminal 1 grossed ¥111 million
(US$969,000) daily for the period 2 to 25 June this year, with ¥50 million (US$436,864) contributed by retail and food
& beverage concessions located in the South Wing and Satellite 5.
The 3,500sq m Narita Nakamise shopping area, which is the retail area of the South Wing, and which has the majority
of shops including ten luxury brand boutiques, contributed ¥43 million (US$375,703) a day. With the completion of the
South Wing project, airlines under the Star Alliance network have been gathered under one roof. As a result, some
passengers have been transferred from Terminal 2 to Terminal 1, resulting in a +75% increase in passenger numbers at
Terminal 1. However, the airport pointed out, the growth in sales (+95%) outstripped the increase in passenger
numbers (+75%) at the terminal. At T2, sales declined sharply as a result of the loss in passengers to T1. Daily takings
fell -22% to ¥102 million (US$891,203), less than the -29% decrease in passenger numbers.
THE MOODIE REPORT
LANDLORD & CONCESSIONAIRE NEWS
BAHRAIN. In what it describes as “a first for the region if not the world”, Bahrain Duty Free will present the
winner of this summer’s car raffle with four 4×4 cars, the prize for just one winning ticket. The promotion, called ‘One
for All & All for One’, begins on 1 August at all Bahrain Duty Free outlets at Bahrain International Airport as well as at
the company’s seaport store. Customers can also securely order tickets via the retailer’s website www.bdutyfree.com.
The four vehicles will be delivered to the nearest port to the winner’s delivery address, anywhere in the world.
A total of 2,000 tickets is on offer with a value of BHD60 (US$162) each. The 4×4s are a Range Rover Vogue, a Lexus
LX470, a Hummer H3 and a Nissan Patrol. “Our agency has produced an excellent campaign based on an in-house
brainstorming session on how to improve our car draw for this unique raffle – possibly the first in the region if not in
the world,” said Bahrain Duty Free General Manager Maurice Burke. “Four top class 4×4s for one lucky winner is our
way of saying thank-you to our customers for making the first six months of 2006 our best first-half results ever.”
CURAÇAO.
More than 500 guests celebrated the completion of Curaçao’s new international airport terminal at a
gala event held on Saturday night. VIP attendees included Netherlands Antilles Prime Minister Emily de JonghElhage. Hato International Airport’s new US$44 million terminal, which features a wide range of retail and other
commercial services, welcomed its first passengers on Tuesday. The 12,000sq m facility is under the direction of
Curaçao Airport Partners (CAP), and both public and private investors. Alterra Partners (a joint venture between
Bechtel and Changi Airport Group) has a 51% share. [Editor’s note: A major pictorial report from the opening can be
found at www.TheMoodieReport.com]
Anchor airside stores include Aldeasa and Café Britt, each with two stores. Aldeasa will also operate a 45sq m Arrivals
store. Colombian Emeralds and Omni Electronics make their debut at the airport, as does 5 Star Sports Bar, owned and
operated by a local resident. Improvements over the old terminal include 34 shared check-in counters, adaptable
electronically for use by any of the airlines serving the airport, and a +240% increase in the Departures screening area.
Decorated in bright colours typical of the Netherlands Antilles island, the terminal offers an open-air departures level,
cooled by giant ceiling fans. Construction on the new terminal began in August 2003 but passenger expectations were
hit by the bankruptcy of national carrier Dutch Caribbean Airlines two months later. Officials admit this has affected
their budget goals but they are optimistic it will be made up as they expect more airlines to begin services to Curaçao.
In the meantime Curaçao continues to prepare for a doubling of hotel rooms in the next few years from the current 3,000.
Hotel investors include Hyatt and Renaissance which are both constructing high-rise towers. Calling the terminal “the most
modern and convenient airport in the Caribbean”, CAP will have a chance to show off its new facility to the wider industry in September when the island’s capital Willemstad hosts the American Association of Airport Executives conference.
Page 7
The Moodie Report
UK. World News, part of Alpha Retail, has opened its revamped airside store at Aberdeen Airport, Scotland. In
partnership with BAA the company has invested £180,000 in the relocation and expansion of the store, from 200sq ft
(19sq m) to around 850sq ft (80sq m). The World News expansion is part of BAA Aberdeen’s £3 million development
of its departures lounge.
The store has been relocated to an area of increased passenger flow. Alpha said it bears a sleek, contemporary new look,
similar to that introduced at the retailer’s flagship London Heathrow Terminal Three store earlier this year. Redesigned
shelving and a simplified layout have increased the stockholding capacity for core category ranges of books and
newspapers/magazines. Almost 25% of the store’s space is now dedicated to books. The additional floor space has also
enabled World News to offer a far more comprehensive product range to include souvenirs, travel accessories,
toiletries, children’s toys and games, stationery and greeting cards.
THAILAND. In what local newspapers described as a “carnival atmosphere” Bangkok’s new Suvarnabhumi Airport
passed its first big examination successfully on Saturday. The airport operated its first commercial domestic test flights,
starting with Thai Airways flight TG 1881 carrying VIP passengers including caretaker Prime Minister Thaksin
Shinawatra, accompanied by many cabinet members. “Suvarnabhumi Airport resembled a shopping and entertainment
hub yesterday, throwing a fun fair extravaganza to welcome passengers of the first commercial test flights and airport
visitors,” the Bangkok Post reported on Sunday.
Most services functioned well, including the all-important security operation – and the retail facilities. Reports said that
more than 10,000 people packed the airport, lured by discounted merchandise on offer as part of a festive promotion.
Food & beverage operators distributed coupons for free drinks while King Power International, the exclusive retailer at
the airport, offered a range of merchandise at attractive prices.
King Power International Deputy Managing Director Susan Whelan told The Moodie Report that all went well on
Saturday. The retailer is now looking forward to the grand opening on 28 September. It is also preparing to open its
grandly ambitious Bangkok downtown complex on 18 August.
Boarding now.
Retail opportunities available - Cairns Airport.
Expressions of Interest - CPA EOI0036
Retail Concession Opportunities
Cairns Airport is seeking experienced retail partners to enhance the visitor
experience of Cairns Airport and Tropical North Queensland through the
provision of high quality goods and services. Opportunities are available at
both International and Domestic Terminals in the following areas:
Speciality retail • Food & beverage • Newsagency & books
Currency & banking services • Tourist & landside services
To discover more about these opportunities, please read the
Expressions of Interest documentation available for download at
www.cairnsport.com.au/corporate/tenders
396F ENGINE ROOM CREATIVE
For further information, contact the Retail and
Advertising Manager at Cairns Airport on + 61 7 4052 9714.
The Moodie Report
THE MOODIE REPORT
TENDER & CONTRACT NEWS
INDIA. Further details have emerged of
bids for the duty free contracts at ten airports
controlled by Airports Authority of India
(AAI). The technical bids were opened last
week and AAI has indicated a time frame of
around two weeks to complete its evaluation
of these offers. After that the financial bids
will be opened.
Bidding line-up for Airports Authority of India duty free contracts
Goa
Trivandrum
Hyderabad
Bangalore
Chennai
Amritsar
Ahmedabad
Calicut
Kolkata
Gaya
ITDC
Flemingo
India
Alpha
King
Power
Truebell
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
A five-strong field comprising ITDC,
n
Flemingo India, Alpha, King Power (HK)
and Sharjah-based Truebell Marketing is
contesting various contracts (see table). As
reported earlier by The Moodie Report,
three airports – Calicut, Kolkata and Gaya –
attracted no bids. State-run India Tourism
Development Corp (ITDC) operates the
existing businesses at Calicut and Kolkata and is therefore likely to continue on existing terms, sources said. According
to informed sources ten parties had collected the tender documents. These are likely to have included The Nuance
Group which has formed a joint venture with powerful Indian retailer Shopper’s Stop and was a surprise non-bidder.
That partnership will no doubt be eyeing bigger opportunities that lie ahead.
THE MOODIE REPORT
FOOD & BEVERAGE AND OTHER COMMERCIAL REVENUES
UK. Glasgow-based delicatessen chain Peckham’s has opened its first airport store at Glasgow Prestwick. The outlet is
located landside in the central concourse and offers speciality produce such as fine wines, malt whiskies, seafood and game.
There is a strong emphasis on uniquely Scottish gifts such as shortbread, oatcakes, traditional relishes and preserves.
The 24-year-old Peckham’s brand has been built on providing locally sourced food and drink. Glasgow Airport operator
Infratil Airports Europe said the store was already proving popular with local residents as well as passengers. Glasgow
Prestwick Chief Executive Mark Rodwell said: “We are very happy as this is the first Ayrshire location, and the first
airport location, for Peckham’s. Working with such a successful and distinctly Scottish company is a major coup for us.”
UK. A new Marks & Spencer Simply Food store has opened at London Luton Airport. The store is the second Marks
& Spencer’s Simply Food airport store, opened in partnership with travel catering specialist SSP. The 3,000sq ft store is
in Arrivals, and conveniently located for airport passengers and workers. It stocks over 800 quality food products and
select grocery items, including ready meals, fresh produce, salads, sandwiches, flowers and wine.
SSP UK Airport Division Managing Director Simon Turl said: “We know many travellers and airport staff want to be
able to buy Marks & Spencer food more regularly, more easily and locally.” London Luton Airport Managing Director
Kathryn James commented: “The opening of the Marks & Spencer Simply Food store at London Luton Airport marks
another milestone in the development of the airport’s major retail brand portfolio.”
UK.
In other SSP news the airport catering specialist has opened its biggest UK airport bar at Birmingham International, under the Yates’s name. Located airside in Terminal One, it will seat 220 and will be open around the clock, 365
days a year. The bar will serve the full Yates’s menu, which includes light bites to share, sandwiches and paninis, salads
and pasta, together with traditional main courses such as British ‘bangers and mash’ and steak pie served with mash.
SSP UK Airport Division Managing Director Simon Turl said: “Yates’s is a popular brand which offers great value, and
this bar at Birmingham International makes an excellent addition to our existing portfolio of catering outlets at the
airport.” Birmingham International Airport Managing Director Richard Heard said: “SSP has been a partner of the
airport for over 15 years and this is testament to the service that they have to offer. This new brand complements the
airport’s existing portfolio and is part of the recent completion of a major £30 million phase of investment and
development in new facilities for passengers including new duty free shops and other retail and catering, creating even
more choice for our passengers here at BIA.”
Page 9
The Moodie Report
THE MOODIE REPORT
GENERAL NEWS
AUSTRALIA/UK. Two ‘scams’ involving duty free tobacco in Taiwan and the UK received extensive global
media coverage last week. In Australia, a Taiwanese couple have been charged in Brisbane over an alleged multi-million
dollar tobacco scam, according to Australian Associated Press (AAP). The pair are accused of having cheated the
Commonwealth government out of more than A$10 million in evaded tax. The scheme involved the selling of ‘duty
free’ tobacco in Australia between July 2000 and November 2004, the Australian Federal Police said.
AAP said the investigation has already resulted in three men receiving suspended one-year prison sentences for tobacco
tax evasion. More than A$20 million worth of assets, including a Brisbane office block, houses and luxury cars, were
seized as a result of the investigation.
Tobacco was also the subject of a story in the northern UK city of Newcastle. The Evening Chronicle claims to have
exposed a scheme by which smugglers were targeting the region’s airports. “Criminals buy cheap one-way flights,
checking in and stocking up on their full allowance of duty free cigarettes,” it said. “But instead of boarding their flight,
they hide and wait to mix in with passengers from arriving flights before walking out. They then sell the cigarettes for
thousands on the black market in pubs and clubs on Tyneside.”
The report said that two (named) individuals were each caught with 6,000 cigarettes after failing to board a plane to
London. “They sneaked out of Newcastle Airport and were seen handing over bags full of the cut-price cigarettes to an
accomplice in the car park.” A Customs spokeswoman told the newspaper: “They can be in and out of the airport
within an hour and each time they do it, they can make more than £1,000.
“If they plan to do this a few times a week, they could make a fortune and are cheating the taxman out of thousands.
But what they don’t realise is, we are looking at what they are buying and where they are travelling to, and will step in
to arrest them.” Travellers from the UK can only buy duty free if bound for non-EU countries. If bound for EU states
they must be able to prove their purchases are for personal use.
THE MOODIE REPORT
PEOPLE NEWS, JOBS & EVENTS
CANADA. Vincor Canada has announced the appointment of Roger Provost to the role of President Sales and
Marketing, Vincor Quebec. Quebec is the largest Vincor (Canadian domestic) market in volume as well as in value. Provost returns to his native Quebec after ten years establishing Inniskillin as the leading icewine brand in over 65 countries.
The move follows the acquisition last month of Vincor by Constellation Brands. In another key move, Randy Dufour
is appointed to Export Director of all Vincor’s Canadian products. In a statement Vincor said: “Randy will continue the
ground-breaking accomplishments of Roger Provost and his team, having built Inniskillin Icewine into the leading wine
brand in the travel retail channel.” Imagination Unlimited International (IUI) will continue to handle the travel retail
market, where Inniskillin has enjoyed remarkable success over the past decade.
Commenting on the announcements, IUI President Lars Johansson said: “Beverly [Johansson] and I shall sincerely miss
Roger; one could not have had a better partner at the Vincor Corporate centre. Roger, Beverly and I shared the vision
and drive to build Inniskillin Icewine to become one of the leading super-premium brands of the world.”
INTERNATIONAL. On The Moodie Report.com’s Jobs board this week:
Positions offered:
n Pepsico International – Business Development Manager (China Beverages Unit)
n Lenrianta – Finance Manager (St Petersburg)
n Runway Duty Free – Finance Manager (Moscow Domodedovo Airport)
n Whyte & Mackay – Travel Retail Manager (Southern Europe)
n Senior executives required for travel retail positions (US-based)
n Maui Jim Sunglasses – Duty Free Sales Managers (Europe/Middle East; Asia)
Positions wanted:
n Travel retail executive seeks project-based work
n Experienced manager seeks challenging role in luxury goods – Europe or Asia Pacific
For full details see Jobs at www.TheMoodieReport.com
Page 10
The Moodie Report
SOUTH AFRICA.
The 2006 ACI World Annual General Assembly & Exhibition will take place in Cape Town
on 7–10 November. The event is one of the most important in the airport calendar. Last year it attracted over 700
delegates representing over 100 airports and airport authorities as well as retailers, food & beverage operators, other
service providers, brands, financial institutions and other industry-related companies.
Key themes at this year’s conference – which forms a core part of the event – are maximising revenues, achieving
greater efficiencies and forging successful partnerships. The 2006 ACI World Annual General Assembly & Exhibition
conference programme is now available on the official event website www.aciworld.aero. To register for the event
simply following the online instructions.
Note: ACI World is also the partner with The Moodie Report in the most ambitious airport commercial revenues
conference for 2007, the ACI Business & Trinity Forum. It will be held in Dubai, on 11–13 March. The Gala Dinner
will feature the annual presentation of the prestigious Airport Service Quality Awards (formerly the AETRA Awards).
For details e-mail Martin Moodie at [email protected] or Andreas Schimm at [email protected]
US/INTERNATIONAL. Julian Levy, one of DFS Group’s most senior and respected executives, is leaving
the group as a result of an organisational restructure. Levy’s amicable departure brings an end to an outstanding 18year career with the world’s leading travel retailer. Levy (44) is currently President of US Group, holding responsibility
for North America, Hawaii and Mid-Pac (Guam, Saipan and Palau). His position is being eliminated under the
restructure, with the managers of the region reporting in future to President, Worldwide Store Operations and
Business Development Mark Daley, based in Hong Kong.
Levy began with DFS in 1988 as Retail Operations Manager UK Division, having spent the five previous years with
Allders International (now The Nuance Group). In the intervening years he has held down several of the most senior
roles within DFS, including being President of US Group, North America and Oceania respectively.
Comment: Organisational restructures are an intrinsic element of contemporary corporate life and DFS and Julian
Levy are known to be parting amicably as a result of the operational review. Experience and talent of his level don’t
come along that often in the travel retail industry and it seems unlikely that he will remain for long out of a business he
knows intimately.
THE MOODIE REPORT
FEEDBACK – CONSUMER
INTERNATIONAL
. Questions pouring into the traveller
hotline at our consumer website Duty Free Shopping Index.com
continue to range from the predictable (‘Does airport shop X sell Y?’;
‘How much does a bottle of Z cost?’) to the bizarre (‘Can I carry a
replica gun for my son on a flight from Cyprus to the UK?’). Here is a
selection of recent questions.
Q. Do any of the duty free shops carry Chanel sunglasses? I will be travelling
to Tokyo from New Jersey, so I will leave from either Newark or JFK, and go
into Narita Airport. Have you seen them in any of those airports?
Q. Please tell me what the rules are for open bottles of alcohol. Do they count
toward the set allowances? I’ve been told otherwise. We are travelling from
Australia to Thailand and back.
Q. My daughter is travelling in Japan and just lost a brand new Canon
digital camera that we had purchased for her to use on the trip. I was
thinking that the duty free shop at Tokyo Airport might be a good place to
find a replacement camera but, looking online, it doesn’t look like the shops
there carry consumer electronics. Can you please let me know if they do?
Q. Please can you tell me what the duty free allowance is on tobacco,
cigarettes and wine from Belgium to England via France, as I have been told
that you will have to pay duty tax in France on items purchased in Belgium.
Page 11
The Moodie Report
THE MOODIE REPORT
FEEDBACK – TRADE (FROM THE MOODIE REPORT FORUM)
INTERNATIONAL. The Moodie Report Forum is the only channel in this business that allows you to have your
say (attributed or anonymous). This week’s main talking point was the decision of MyTravelAirways Scandinavia to delist Parfums Christian Dior for insisting on a -20% rather than -25% retail price point saving over the local market.
Regarding the savings on P&C categories in Travel Retail Business: I think [MyTravel’s] Lars (Hjartbo) was absolutely right, we
HAVE to offer our customers a -25% saving compared to domestic prices, and this includes both air and ferry business. We just
can’t underestimate the knowledge and price awareness of our passengers! We have studied this issue a lot in our company, too, and
I totally agree with Lars. – Jaana Heino, Procurement Manager/Shopping, Silja Line
No, no, no! This unhealthy obsession with price will be the ruination of the region. Times have moved on. We must learn to sell on
more than price. For the sake of -5% Dior is off the shelves. Who is the winner? Not the consumer that’s for sure! Why don’t the
organisers of the Nordic Conference have a proper debate on this subject – a real debate in which someone argues AGAINST this
obsession with price? – Nordic Nils
THE MOODIE REPORT
DESERT ISLAND DUTY FREE
To set the scene: It’s nice to touch on the human and lighter side of the business. So in the spirit of the popular UK radio programme ‘Desert Island Discs’ in which interviewees select the music they would take with them to the island, The Moodie Report
has unveiled its own signature sign-off. But instead of music, our guests have to choose items from various duty free categories.
This week’s castaway is Beverly Johansson, one half (along with Swedish husband Lars) of the double act that has made Imagination Unlimited International one of the biggest independent companies in the business, mainly thanks to its extraordinary success
with Inniskillin Icewine. But stranded on our island, away from Lars, how will Beverly keep herself happy? Simple, she says; all it
takes is a little Imagination…
Accessory: My ASP Wearable Light given to me by Armand Ventura of Digital & Wireless Group. It can be seen from very far away
and flashes out the SOS code, which can be very helpful.
Confectionery: I wish there were a duty free cheesecake, but until there is, it would be Anthon Berg’s white chocolate that Henning
Kallesen shares with me, and the Smarties from Nestlé that Jean-Michel Juin always supplies. The white chocolate I would devour
and the Smarties would be used to spell out HELP in the sand.
Book: I suppose Swiss Family Robinson would be appropriate, especially if I need to build a tree house or fend off pirates. Then
again, reading Lord of the Flies might give me that fighting edge necessary to become the Queen of this island.
Cosmetics: Lancôme maquicake UV Perfect Forever. It has sunscreen so I won’t end up looking like a prune once I figure out a way
to get off this island. Also, I could make a fire using the mirror. But what I really can’t be without is the Plump Lips from Freeze
24-7, kindly given to me by Liz Taylor. My lips look like those of a pouty model but without the attitude.
CD/DVD: Being alone on an island where I can dance with complete lack of inhibition or self-restraint, well, that’s just too good to
be true. Definitely need to have a mix of the B-52s, The Clash and Herb Albert and the Tijuana Brass. Oh yes, and little Louis Armstrong for dining music for me and the island monkeys.
Fashion item: I don’t plan on wearing anything… it is a deserted island for goodness’ sake. Okay, maybe while dancing. In order to add
to that wild banshee effect I will wear a Fendi silk scarf given to me by Won Kim of Best Brands, and the crystal necklace given to
me by Swarovski’s Patricia Martinez.
Fragrance: Back in the last millennium I would wear a different fragrance for each
person I dated. So each date had his own signature fragrance that would remind
him of me. Well, I stopped changing fragrances 14 years ago when this big Swede
kept hanging around me. He hasn’t left yet, so I guess you could say that I am
stuck in a fragrance time warp, still wearing Lancôme’s Tresor.
Spirits: Torben Anderson gave me a bottle of Cruzan Rum Cream, and I thought it
would go great with coconut. The local monkeys and I plan to infuse the coconuts
and make a duty free destination gift. Look for it in next year’s Best ‘n’ Most rankings.
Tobacco: I don’t smoke, but I would burn a few good cigars in order to keep the
mosquitoes duty free.
Watch: I don’t wear a watch in civilisation. I surely won’t on the island. However,
I will bring a waterproof Swatch watch.
Wine: 40 cases of Inniskillin Sparkling Icewine. The very fine, elegant bubbles make
it so darn refreshing, and it has an aroma and taste that defy Imagination…
Thank you for your readership and support of The Moodie Report.
Martin Moodie, Editor
LATE NEWS see page 13 ä
Page 12
The Moodie Report
THE MOODIE REPORT
STOP PRESS
EGYPT.
Cairo Airport Company has issued a Request for Qualification for the retail concession at Cairo’s new
Terminal Three through The Moodie Report. Cairo Airport Company (CAC) owns Cairo International Airport which
is currently building a new terminal (TB3) to provide its customers with the most modern and state of the art facilities.
Since February 2005 Fraport AG, the owner and manager of Frankfurt Airport, has operated under a management
contract to support the development of Cairo International Airport into an “efficient and welcoming” airport. Within
this scope, CAC is seeking the optimal model for exploiting the retail opportunity at its new TB3 which is due for
completion in August 2007.
The goals of this concession are to provide first class facilities and a broad variety of merchandise to travellers and
airport users; to provide quality and value to airport customers; provide innovative retail concepts that combine broad
customer appeal; to increase the friendliness and convenience of Cairo International Airport to passengers and visitors;
to enhance the image of the capital city; and to optimise the concession revenues to the airport.
Cairo International Airport is the main gateway from/to Egypt and is both a business as well as a tourist destination. In
2005, it handled a total of 10.2 million passengers, including two million domestic passengers in two terminals. Traffic
in 2005 grew by +7.2% over 2004. Traffic growth in 2006 is currently running at around +3% (for the period to June),
the peak season being in the summer months of July, August and September. Once completed, TB3 is expected to be
handling both domestic and international traffic. It will be used by EgyptAir as well as other major airlines and on
going into operation in 2008 it will serve five million international and two million domestic passengers.
The Retail Opportunity
This specific opportunity encompasses the development and operation of the retail area in TB3.
The retail areas are classified as follows:
Post Customs – Landside retail
1.085: Level 1 – Terminal shop(s) – 529sq m
International Arrivals Duty Free
1A.008: Level 1A – Concourse shop(s) – 110sq m
International Departures
2.013: Level 2 – Concourse shopping mall (left part) – 993sq m
2.023: Level 2 – Concourse shopping mall (centre part) – 645sq m
2.024: Level 2 – Concourse shopping mall (right part) – 886sq m
2.051: Level 2 – Finger A last minute duty free – 61sq m
2.075: Level 2 – Finger B last minute duty free – 46sq m
Domestic Departures
The Invitation
Cairo Airport Company invites companies to apply for Pre-Qualification in putting forward proposals to establish,
operate and manage the new retail area. The retail contract will be a single contract and will be for a period of eight
years and will begin with the official opening of the new terminal that is scheduled for March 2008. The financial
basis of the concession contract will be a percentage of sales or a minimum annual guarantee (MAG), whichever is
the greater.
For the full RFQ see our story at www.TheMoodieReport.com
Publisher’s note to airport authorities: More and more airports are issuing their commercial requests through
The Moodie Report. Through us you will reach every concessionaire in the world, via our unrivalled combination
of e-newsletter (now sent to over 7,100 readers worldwide) and web-based market penetration. The service is free
of charge and covers all non-aeronautical, commercial revenue streams.
Page 13

03 August 2006 - The Moodie Davitt Report

Transcription

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