NASSAU, BAHAMAS — The Nassau Airport Development Company (NAD) had recovered nearly 70 percent of its passengers compared to its 2019 “banner year”, at the close of last year, according to its president and CEO Vernice Walkine.
NAS has issued a new RFP for an independent partner to manage all digital and display advertising at LPIA. The advertising RFP is one of three current business opportunities available at the airport, as passenger numbers and revenue projections trend upward.
In addition to the RFP for LPIA’s Advertising Concession for indoor and outdoor spaces, NAD is also seeking proponents to operate a 300 square foot Bahamian-themed food and beverage concession in the Domestic/International Departures terminal and a 100 square foot retail space in the US Departures Lounge.
“At the close of 2021, NAD had recovered 68 percent of its passengers compared to 2019 which was a banner year for LPIA,” she said.
“For 2022, we continue to see strong returns particularly from key target markets like Newark, Washington, Ft. Lauderdale/Miami and London. This growth is also being mirrored on our revenue side especially during the last quarter of 2021,” said Walkine.
At the final quarter of 2021, LPIA had close to 2.1 million airline seats, 80 percent of what the airport reported in 2019. More traffic in the terminal means a boost in revenue for existing food and beverage and retail outlets. The increase also creates an environment for NAD to pursue new proponents for concession contracts,”
Walkine said: “The growth is encouraging. It speaks to the viability of our overall tourism product and the confidence visitors have in the destination. We have taken our industry’s recovery very seriously and have built a level of trust with our business partners and hope to continue that in the future.
NAD’s current business model is a strong mix of aeronautical revenue generated primarily through passenger facility charges, aircraft parking and landing fees and non-aeronautical or commercial operations revenue inclusive of terminal leases and concessions, car parking and others.
In December 2021, the company’s non-aeronautical revenues were $7.7 million fiscal year-to-date, six percent above what was forecasted with December numbers being up 23 percent over projections. The amount represented 88 percent of the year-to-date-aeronautical revenue for the same period in 2019, a banner year for airport passenger numbers and revenue generation.
Walkine added: “The economic impact of LPIA, particularly over the past 15 years since its complete redevelopment under NAD, is significant. More than 4000 persons work at the airport and many businesses and spin-off operations benefit directly from LPIA. As we push the industry forward beyond the pandemic, our focus is on improving our efficiency, enhancing the passenger experience and creating viable revenue generation through commercial opportunities at the airport.”
