COVID-19: Tenants at Changi Airport to receive 50% rental rebate for 6 months

COVID-19: Tenants at Changi Airport to receive 50% rental rebate for 6 months

Changi Airport 17
In wake of the novel coronavirus COVID-19, Changi Airport Terminal 4 has seen much lesser human traffic (Photo: Jeremy Long)

SINGAPORE: Retail, food & beverage (F&B) and service outlets at Changi Airport will receive a 50 per cent rental rebate for six months effective from Feb 1, the airport said on Thursday (Feb 20).

It comes after Deputy Prime Minister and Finance Minister Heng Swee Keat's Budget speech on Tuesday, when he announced that the Government, Civil Aviation Authority of Singapore and Changi Airport Group (CAG) will provide an Aviation Sector Assistance Package amounting to S$112 million to the airport community to help defray business costs and protect jobs, as well as safeguard Changi’s air connectivity.

This includes that the 15 per cent property tax rebate that Changi Airport will receive from the Government, alongside a suite of measures including rebates on aircraft landing and parking charges, assistance to ground handling agents and rental rebates for shops and cargo agents at Changi Airport.

This is part of the S$4 billion Stabilisation and Support Package, announced in the Budget. 

The package is designed to boost sectors that have taken a hit from the COVID-19 outbreak, such as the tourism, aviation, retail, food services and point-to-point transport services.

READ: Budget 2020: 5 things to know about plans to help workers and businesses amid COVID-19 challenges

READ: Budget 2020: S$4 billion support package for workers, firms amid COVID-19 outbreak

The 50 per cent rebate for stores is on top of automatic rental offset tied to passenger movements at the airport, which all stores will receive as part of their tenancy agreements, said the airport in a press release.

The airport said that given the "dynamic nature of the aviation environment" a sizeable portion of rentals at Changi Airport 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.

SHORTER OPERATING HOURS

Another measure Changi Airport has taken is to shorten operating hours for its tenants in their transit areas, 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. Airport workers will also receive additional discounts to encourage them to shop and dine at the airport.

Source: CNA/nh(rw)

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