'Mini city' plan for Phuket International Airport

[webfact]

'Mini city' plan for Phuket International Airport

PHUKET: -- Airports of Thailand PLC is adopting a plan to turn its airports into mini cities and lifestyle centres to sustain long-term revenue growth.

TTR Weekly yesterday (April 3) quoted AoT president, Makin Petplai, as saying that the initiative will attempt to create urban centres that are much more than just an airport. They will offer a range of non-airport services and retail options to attract more consumers.

If it works, non-airport-service revenue will increase to 60 per cent, mainly earned on retail space rentals. At present it represents 40 per cent of earnings, with direct airline revenue still making up the bulk of income.

“The plan will cover Suvarnabhumi, Don Muang and Phuket airports … Each of the airport cities will feature different themes depending on location and lifestyle,” Mr Makin said.

The trend is already in place as AoT attempts to turn airport real estate into mega shopping malls.

AoT’s main mission is to secure substantial profit from its space rentals, but the downside is that the retail prices can be three times what is charged in a downtown city shopping mall.

Don Muang and Phuket airports will both be positioned as shopping cities. Suvarnabhumi will be positioned as a technology centre, but it will take around two years for the concept to be visible to consumers.

“Eventually, passengers will have more time to spend at airports,” he said.

Passengers are already spending about two hours negotiating check-in counter queues, immigration and security checks. Once in the airside zone of the terminal they are confronted with shops selling international brands, but despite the duty-free status, prices are often higher than outside the airport.

Within four years both Don Muang and Suvarnabhumi airports will be linked by the red line railway that will merge with the airport rail link. Once that happens both airports will be handling around 100 million passengers.

The airport city model is based on the premise that airports should offer non-aeronautical services to build revenue streams.

The downside is that with increased security travellers are less inclined to spend leisure time at airports. Hanging out at airport real estate is just not a cool concept to most consumers. They are already spending far too many valuable hours waiting for aircraft. There are better places to chill out.

Airlines, on the other hand, encourage airports to build alternative revenue streams as this helps to keep the airlines’ costs down.

Source: http://www.thephuketnews.com/%E2%80%98mini-city%E2%80%99-plan-for-phuket-international-airport-45531.php


-- Phuket News 2014-04-04

[madmitch]

The shareholders of King Power will be rubbing their hands in anticipation.

[Diamondcondo]

The shareholders of King Power will be rubbing their hands in anticipation.

Looks like they will be in the Premier League as well next year!

[than]

I hope they can make some Plane-spotter facilities too......

[steelepulse]

King Power duty free prices sure aren't duty free, they hold a monopoly and aren't about to relinquish it.

[bushman1666]

Two points: 1) If that rail link between Swampy and DM actually happens will be brilliant. I might actually be able to make my connection if not stuck in Bangkok traffic.

2) Just who buys stuff at inflated prices from these airport shopping Malls? Compared to shopping in outside Malls: poor choice of goods, probably out dated models, no chance to compare prices and bloody expensive. Only stuff I buy from these places is perfume for the wife (at least we know it is likely to be the genuine article) and over priced Thai snacks for dear old mum.

[IsaanUSA]

I hope they can make some Plane-spotter facilities too......

Super cool idea.

How about a bar/restaurant that faces the runways (so they can capture revenue) as well as a public place for people just to sit and enjoy the view?

[simon43]

Interesting idea - exactly where do they intend to build this 'mini-city' at Phuket Airport? They have already used all nearby land to build the X-terminal, new international terminal, new car park and of course the new offices for King Power.

[Somtamnication]

A theme for Phuket airport. Sharknado!!

[madmitch]

Interesting idea - exactly where do they intend to build this 'mini-city' at Phuket Airport? They have already used all nearby land to build the X-terminal, new international terminal, new car park and of course the new offices for King Power.

Take away the seats of course. Nowhere for anyone to sit so they browse in the shops.

Or if it's not after passport control, now they have a new multi-storey car park, a shopping mall will be a great idea to utilise the land from the original car park. Of course still leaving room for the taxis.

[fatdrunkandstupid]

Perfect. The farangs can arrive at the airport, spend all their money in the airport, and then fly out.

Perfect...all of that lovely farang cash and us Thais don't even have to see them in our community.

Oh...hang on...maybe the Tuk Tuks and Taxis will blockade the Airport cities because they have lost their income...

[jocko]

Just remind me ,how much is a small can of Singha at the airport.

[LivinginKata]

Just remind me ,how much is a small can of Singha at the airport.

Think it's a universal 100 baht at every shop.

[IsaanUSA]

Perfect. The farangs can arrive at the airport, spend all their money in the airport, and then fly out.

Perfect...all of that lovely farang cash and us Thais don't even have to see them in our community.

Oh...hang on...maybe the Tuk Tuks and Taxis will blockade the Airport cities because they have lost their income...

I think you missed the idea of creating the mini-city entirely.