Changi Airport will receive rental assistance under the Singapore Budget 2020 Stabilisation and Support Package (SSP) for the aviation sector.
The assistance aims to help concessionaires survive in the challenging retail climate caused by the COVID-19 (Coronavirus Disease 2019) outbreak, which has adversely affected air passenger traffic and weakened consumer demand.
The news follows the Minister for Finance’s budget announcement that the government, Civil Aviation Authority of Singapore (CAAS) and Changi Airport Group (CAG) will provide an Aviation Sector Assistance Package amounting to S$112m (US$79m) to the airport community to help defray business costs and protect jobs, as well as safeguard Changi’s air connectivity. This amount includes a 15% property tax rebate, which CAG will receive from the government and pass on in full to the aviation community under the Aviation Sector Assistance Package.
Current concessionaires in Changi Airport’s four terminals, and in both the transit and public areas, will be offered a 50% rebate on their monthly basic rental for a period of six months effective February 1, 2020 (or any later tenancy commencement date). This is in addition to an automatic rental offset tied to passenger movements at Changi Airport that existing concessionaires receive as part of their tenancy agreements.
“The shops and restaurants in Changi Airport are very much dependent on passenger traffic. The COVID-19 situation has affected air travel significantly and there has been a marked drop in business for our concessionaires. With our unique rental structure, our concessionaires will benefit from an ‘automatic’ reduction in their rent in tandem with the reduction in passenger traffic. In addition, we have decided to provide further assistance by reducing the basic rental to help our concessionaires during this very difficult period,” said Lim Peck Hoon, executive vice president of commercial, Changi Airport Group.
As some businesses are taking a harder hit than others, CAG is also currently in discussion with individual concession partners to offer further assistance.
CAG has also shortened the operating hours for its tenants in the transit area, including those previously operating round the clock, with the exception of retail and F&B outlets providing essential services to passengers. Tenants in the public areas will also be given the option to shorten their operating hours.
To drive consumer demand, the group will also launch marketing and promotional initiatives to incentivize spending by visitors to the airport.
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