Soaring sales of 'duty-free' boost profits for Beijing airport
Beijing Capital International Airport has seen significant revenue growth thanks to the booming business of duty-free stores, driven by the growing international travelers and their spending power.
In the first half of this year, Beijing Capital International Airport netted sales revenues of 4.61 billion yuan (USD 700 million), an 8.8 percent increase year-on-year. Of that total, non-aviation income reached 2.16 billion yuan, jumping 13.5 percent over the previous period, according to its latest earnings report.
The airport said in its report that income growth of the non-aviation sector mainly comes from the growth of duty-free retailing business. In addition, income from advertising and catering has also helped to boost the airport's revenue growth. The increasing number of international travelers has resulted in the launch of more brands and stores, it said.
This year, the Chinese government started to allow airports to run open tenders for duty-free concessions. Under the new agreements, duty-free operators at Beijing airport will share about half of their sales revenues with the airport operator, compared with 20 percent earlier.
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