THURSDAY, March 28, 2024
nationthailand

AOT shifts focus to non-aeronautical businesses to achieve 6% growth

AOT shifts focus to non-aeronautical businesses to achieve 6% growth

Despite a drop in the number of tourists this year, Airports of Thailand Plc (AOT) is still aiming for 6-per-cent revenue growth with plans to expand its non-aeronautical revenue-source with digital platforms.

AOT initially announced it was targeting 5-per-cent tourism growth this year, but the number of arrivals in the Kingdom has been disappointing over the past seven months. 
“From January, we have only seen a 1.5 per cent growth in passengers compared to the same period last year,” said AOT president Nitinai Sirismatthakarn.
Though he believes the last quarter of this year will be stronger due to the low base of last year’s fourth quarter, he admits that the 6 per cent target growth may be a bit unrealistic. 
“Last year’s Phuket boating accident lead to a drop in Chinese tourists. While the figures have not recovered as significantly as we hoped, we still expect passenger growth in the fourth quarter to be better,” he said. “This year, passenger numbers continue being affected by external factors.” 
The US-China trade war and the global slowdown has had clear impacts on passenger figures this year, while the the Hong Kong political unrest is also affecting the tourism industry, the AOT president said. 
However, Nitinai reckons revenue growth this year will be between 5 and 6 per cent, and will continue to be stable in 2020. Profit levels this year should also be stable compared to 2018. 
In 2018, AOT’s total revenue stood at Bt62 billion, with net profits of Bt25 billion. As of July 30, 2019, the company reported a total year-to-date revenue of Bt48.9 billion and profits of Bt19.9 billion. To maintain this profit level, the AOT will have to earn an additional Bt5.1 billion by year end and to achieve this, it plans to focus more on its non-aeronautical businesses. 
Currently, 43 per cent of its total revenue comes from areas such as concession revenue, office and property rents as well as service revenue. 
Hence, Nitinai said, by next year non-aeronautical revenue should make up to 45 per cent of AOT’s total revenue thanks to the digital transformation process it is currently undergoing. 
On August 21, AOT launched its digital platform, “Living Airports”, for six airports across the country, starting with Bangkok’s Suvarnabhumi International Airport. 
On the management side, the application can be used to facilitate traffic management by providing real-time reports on the number of passengers at specific locations, while passengers can use it to access information on their flights, check-in rows, transportation services, shopping and dining options at the airport as well as flight alerts. 
Once the application has been successfully applied at Suvarnabhumi, it will also be made available at Don Mueang, Chiang Mai, Hat Yai, Phuket and Chiang Rai airports.

TAGS
nationthailand