Can Hong Kong airport’s Terminal 2 take off as 11 Skies, rivals pose challenges?

Hong Kong International Airport’s Terminal 2 reopened on June 5, 2026, after a six-year closure for upgrades as part of the city’s HK$141.5 billion (US$18 billion) three-runway system project. The terminal will initially host 15 low-cost airlines, though travelers will still need to use Terminal 1 for boarding until the concourse is fully operational by late 2027. The expansion, including a third runway completed in 2024, aims to boost passenger capacity to 120 million annually by 2035, though economist Simon Lee Siu-po called the target unrealistic given current growth trends. Adjacent to the airport, the 3.8 million sq ft 11 Skies retail and office complex remains mostly vacant, with only two of 120 food outlets open and 800 shops boarded up. The Airport Authority, now managing the project, plans to reconfigure it into dining and entertainment venues, targeting a 2028 opening. Lawmaker Mark Chong Ho-fung expressed optimism about future footfall, citing planned transport links like the Hong Kong-Zhuhai-Macau Bridge and a driverless train to Tung Chung. The airport’s passenger numbers rose 15% in 2025 to 61 million, with another 15% increase expected in 2026 to 70 million, according to CEO Vivian Cheung Ka-fay. However, achieving the 2035 target would require sustained 7% annual growth, which Lee described as unlikely. A 2015 study projected the three-runway system would contribute HK$184 billion (5% of GDP) by 2030, but rising interest costs—around HK$4 billion annually—have added financial strain. Chong acknowledged the challenges, including regional competition and shifting travel patterns, but emphasized Terminal 2’s hardware upgrade would strengthen Hong Kong’s position as a global aviation hub. The authority’s strategy hinges on balancing infrastructure expansion with economic recovery, though uncertainty persists over 11 Skies’ viability and long-term demand.