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During his Budget speech, Deputy Prime Minister and Finance Minister Heng Swee unveiled a $112 million Aviation Sector Assistance Package for the airport community.
Following the assistance measures unveiled in Budget 2020, Changi Airport is giving a 50% rental rebate to its retail, food & beverage (F&B) and service concessionaires for a period of six months starting 1 February.
During his Budget speech, Deputy Prime Minister and Finance Minister Heng Swee unveiled a $112 million Aviation Sector Assistance Package for the airport community to help protect jobs, defray business costs and safeguard the air connectivity of Changi.
This includes the 15% property tax rebate Changi Airport will get from the government, along with other measures such as assistance to ground handling agents, rebates on aircraft landing and parking charges and rental rebates for cargo agents and shops at the airport.
The 50% rebate for stores comes on top of automatic rental offset which is tied to the airport’s passenger movements and which is enjoyed by all stores as part of their tenancy agreement, reported CNA citing a Changi Airport release.
The airport explained that considering the “dynamic nature of the aviation environment” a significant part of rentals at Changi is “designed to vary in tandem with passenger traffic”.
“When there is a drop in passenger traffic, (businesses) will receive a corresponding reduction in their rent. Such a rental structure is unique to the airport,” it said.
Moreover, the operating hours of tenants within the transit area will also be shortened, except for F&B and retail outlets providing essential services. Tenants in the public areas can also opt to shorten their operating hours.
Additional discounts will also be given to airport workers to encourage them to dine and shop at the airport.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg`
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