Asia tourist boom fuels airport binge

Asia tourist boom fuels airport binge
By admin


Faced with snaking queues at immigration, overflowing baggage carousels and expensive flight delays, Asian nations are rushing to build hundreds of new airports to cope with surging demand for air travel in the region.

From China and India to the Philippines and Indonesia, the fast-growing middle classes are looking to spend their cash by spreading their wings, leading to a boom in the Asia-Pacific region's tourism sector.

Airlines have responded by setting up several new budget carriers and flying new routes – but many airports are unable to cope, forcing governments to either expand or simply build new airports.

"Through the next 10 years, we see more than 350 new airports in the Asia-Pacific and the investment cost will be well over $US100 billion ($A108.20 billion)," said Chris De Lavigne, a global vice president at business consultancy Frost & Sullivan Asia Pacific.

"China is building over 100 airports, India is building over 60 airports and Indonesia will also have to follow suit with investments in its infrastructure," said De Lavigne, who closely tracks Asia's aviation industry.

Upgrades of existing airports could cost an additional $US25 billion, he said by telephone from his office in Jakarta.

International tourist arrivals in Asia-Pacific grew an annual six per cent to 248 million last year, the strongest of any region worldwide, according to the UN World Tourism Organisation.

To cope with this, construction is being ramped up.

The Canada-based Airports Council International (ACI) said in a report that Indonesia plans to build 62 new airports in the next five years, in addition to its existing 237.

Soekarno-Hatta in Jakarta is improving capacity after handling 60 million passengers last year, nearly three times what it was designed for, ACI said.

And Kuala Lumpur aims to double capacity to 100 million a year by 2020, while Hong Kong wants to handle 97 million annually by 2030, up from 60 million in 2013.

In Beijing – which already has a hub servicing 80 million people – a second, $US11 billion airport is being built to open in 2018 and handle 40 million passengers, Sydney-based consultancy Centre for Aviation said.

There are also plans for a full replacement of Manila's Ninoy Aquino International Airport, one of Asia's most notorious for overcrowding and backward facilities.

Its Terminal 1, which is undergoing a major makeover, was built in 1981 to handle six million passengers a year.

Together with two extension terminals, the airport handled around 30 million passengers in 2013.

Even Singapore's Changi – regarded by many as one of the world's best – is expanding, with a $US1 billion Terminal 4 opening in 2017 that will raise capacity to 82 million passengers from the current 54 million. Plans are already being made for a Terminal 5.

Shukor Yusof, an analyst with Malaysia-based Endau Analytics, said airport infrastructure in many countries has lagged well behind travel growth.

"Many governments have paid scant attention to developing new terminals and new tarmacs, that's why you find that many of the airports are bursting at the seams," he told AFP.

The focus is not just on capitals. The need for more space means much of the new construction is taking place in secondary cities, with some facilities potentially becoming hubs.

De Lavigne cited the Kualanamu International Airport in Indonesia's Medan, which opened last July and could become a hub for flights to Malaysia, Thailand, Myanmar, India and China.

It was designed to handle eight million passengers a year but is already at capacity, he said.

"By 2025, they're forecasting 24 million passengers out of Medan, or a three-fold increase in just over 10 years," De Lavigne said, adding that Indonesia's aviation sector alone is growing 14-15 per cent a year.

Even less developed tourist destinations are pressing ahead with building.

Myanmar – returning to the global fold after decades of junta-led isolation – is looking to upgrade 39 airports as tourist and domestic air passenger figures are seen surging to 30 million in 2030 from 4.2 million in 2013, the ACI said.

The government is also building a new $US1.5 billion Hanthawaddy International Airport to serve as Yangon's second airport, it added.

Bangladesh is constructing a new airport costing up to $US7.2 billion about 60 kilometres from Dhaka, ACI said.

Funding from governments and the private sector does not appear to be a problem.

"There's a lot of liquidity out there. There's a lot of money in project financing," Shukor said.

Airports are now even targeting non-travellers, with the current trend for "aeroparks and aerotropolises" integrating lifestyle amenities, attracting diners and shoppers who won't even board flights.

"You get people who don't fly to come into the airports for food, shopping and other lifestyle activities. That trend which started in the West is increasingly finding its way into Asia," De Lavigne said.

 

Latest News

  • Destinations
  • Hotels

Elite Havens adds luxury new villa to its portfolio

Elite Havens, a premier luxury villa rental and management provider, has added a new villa to its existing portfolio of over 250 villas now available for rent in Phuket, Thailand. The Surin Seaview Villa is a three-storey hillside retreat nestled on the hills of Phuket’s beautiful west coast and offers breathtaking views of the Andaman […]

  • Destinations
  • Events

Lunar New Year celebrations across Asia

As the Lunar New Year approaches, various destinations around Asia have announced the different celebrations they have lined up. Fire show, live band, instrumentalists, and bartenders flair show The Anam Group’s two beachfront resorts in Cam Ranh and Mui Ne will celebrate the most significant time in the Vietnamese calendar, Tet, with a broad spectrum […]

  • Conferences

The Australian Tourism Exchange heads to Brisbane Convention & Exhibition Centre from 27 April

The Australian Tourism Exchange (ATE) will be held at the Brisbane Convention & Exhibition Centre from 27 April to 1 May 2025. Tourism Australia requires all sellers attending the event to submit a front panel graphic with one image representing their business for marketing purposes at ATE25, while Destination NSW requires sellers to submit a […]

  • Appointments
  • News

New acting CEO of Destination NSW appointed

Karen Jones has commenced her role as Acting CEO of Destination NSW, taking the reins for an interim period of approximately six months. During this time, the Department of Creative Industries, Tourism, Hospitality and Sport will recruit for a permanent CEO. Jones brings over 27 years of leadership experience in state and local government. Most […]

  • Aviation
  • News

Velocity Frequent Flyer Bonus Points offer deadline looms

Aussies only have a few days left to take advantage of Virgin Australia’s Velocity Frequent Flyer Bonus Points offer, available on eligible Virgin Australia international long-haul flights (including Euro summer!) Aussies can maximise their leave, while maximising their points-earning potential by racking up to 20,000 bonus points on business return flights and 10,000 bonus Points […]

  • Attractions
  • News

Inspirational Australians lead events across NSW as Australia Day Ambassadors

Innovators, educators, musicians, healthcare professionals, elite athletes and environmental advocates are among 80 inspirational Australians who will take part in events across NSW as Australia Day Ambassadors on 26 January 2025. These outstanding citizens and local heroes are handpicked each year by the Australia Day Council of NSW for their exceptional contributions to the community […]

  • Cruise

Royal Caribbean’s latest summer getaway deals with up to 60 per cent off

Royal Caribbean has announced its latest itineraries for short summer getaways aboard Quantum of the Seas and Ovation of the Seas with various savings. Prices for these cruises start from $659 per person for a balcony stateroom. Travellers can enjoy up to 60 per cent off second guests, with up to $850 in instant savings and kids’ sailings from […]

  • Luxury
  • News
  • Tour Operators

APT reveals rebrand for Luxury Travel arm with new look and new monogram

APT Travel Group, Australia’s largest family-owned tour and cruise company, has unveiled a transformative rebrand for APT Luxury Travel, introducing a new era with a fresh, contemporary new look. At the heart of the rebrand is a newly designed luxury monogram, replacing the company’s old logo. APT said the elegant, bespoke symbol represents the legacy […]

  • Events

Brand USA Trade Expo returns to Auckland and Wellington

Brand USA, the destination marketing organisation for the US, has announced the return of its New Zealand Trade Expos in partnership with Air New Zealand and United Airlines. Registrations are now open and are free for travel agents. Last year’s event sold out quickly, so agents are encouraged to register early to secure their place […]