Ghana Airports Company to repossess shops from non-performing businesses at KIA

Ghana Airports Company to repossess shops from non-performing businesses at KIA
Source: Ghana | Shiela Tamakloe | JoyBusiness
Date: 26-11-2019 Time: 03:11:13:pm

Shop owners and businesses at the Kotoka International Airport (KIA) that are not utilizing their space or performing well could have their shop spaces repossessed, the Managing Director of the Ghana Airports Company Limited (GACL) Yaw Kwakwa has said.

Currently, some shops have been notified to have their shop spaces repossessed for non-performance. “Three businesses that got shops to offer certain services at the airport have not performed so we have written to them to take our shops back,” Mr Kwawa said.

He explains that failure to utilize the space by these businesses leads to revenue losses for the Ghana Airports Company Limited hence the decision to re-possess the space for new investors.

Mr Kwakwa said, “When we give the shops out to these businesses, they are expected to decorate the place, fill the place and do their business from the space because we get our money from them in two ways. One from the rent they pay and also royalties from the volume of business they transact. So if you give it to someone and the person is not doing anything, you may get the rent payment but you may not get your royalties.”

Upon repossession of the shops, the Ghana Airports Company Limited plans to engage previous investors who had expressed interest but lost out in the bid, to give them a chance to come on board having met strict requirements and processes.

Around the world, large airports often generate huge incomes from rents to subsidize their traffic operations from their commercial revenues hence the need to maintain the profitability of the airport.