Task 1.

Development of demand/revenue projections

1.1

1.2

1.3

1.4

1.5

Review data, supplied by Civil Aviation Department as per Attachment C, for completeness and determine any

additional data necessary to satisfy the requirements of

this list. Determine with Civil Aviation Department base

period necessary for trend identification.

Based on this historical data, determine the degree

of response to cyclical, seasonal and other factors for

use in data projections.

Compare the returns from various concessions such as

shops, duty free areas, restaurants and bars.

Review available projections of the major revenue sources

adjusting as necessary for seasonal and other factors and

refining those projections where required to develop

forecasting models for major revenue generating items. Where practicable, revenue based upon passenger and cargo traffic should be projected by major airport or country

pair (e.g. Hong Kong Tokyo; Hong Kong - San Francisco;

Hong Kong -Singapore). For financial purposes country

pairing comparisons are necessary for forecast validation.

Passenger projections will be used directly in the

forecast of future receipts from terminal fees and concession income (using projections of average expenditure per passenger).

The models developed under 1.4 will be used to project

airport revenue by source over a selected time frame. The

choice of such "base case period" will be determined after

a preliminary investigation of market sources and

formation of an initial view of achievable maturities for

1

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