Dubai: Retail sales make up the bulk of non-aeronautical income at airports in the Middle East, according to the Airport Council International (ACI).
Globally, total airport revenues increased by 5.4 per cent to $130.9 billion (Dh480 billion) last year although more than a third lost money.
“Revenue diversification has been key to financial resilience,” said Angela Gittens, director-general, ACI, speaking on Wednesday in Dubai at the Future of Borders summit.
Retail sales accounted for 49 per cent of Middle East airport’s non-aeronautical income in 2013, higher than all other regions and the global average of 27 per cent, according to the ACI. Non-aeronautical income is revenue that does not come directly from passenger or aircraft fees.
UAE airports have invested heavily in building their retail offerings as they looking to cash in on the millions of passengers passing through each year.
Dubai International, the world’s sixth-busiest airport overall and largest for international passenger traffic, handled 70.4 million passengers last year.
Dubai Duty Free, located at Dubai International and Al Maktoum International at Dubai World Central (DWC), made Dh6.999 billion in sales in 2014, a 7.36 per cent increase on the previous year.
Abu Dhabi Duty free posted Dh1 billion in sales last year, made on the back of a 20 per cent of passengers using the airport. Around 20 million passed through the airport in 2014.
The proportion of Middle East airport retail income is in contrast to the US where airports are cashing in on visitor car parking related income. Car parking accounted for 39 per cent of non-aeronautical revenues at US airports in 2013, above the global average of 20 per cent. US airports made 8 per cent of non-aeronautical income from retail sales in 2013, while Middle East airports took 8 per cent of non-aeronautical income from car parking.
