Asia's 'Mega Airport' Construction Race

Asia is witnessing a post-pandemic tourism boom, with countries in the region actively upgrading their airports to prepare for this wave.

On May 15, Singapore officially broke ground on Terminal 5 at Changi Airport, a project expected to be completed by mid-2030.

The new terminal is being built on a 1,080-hectare site, which is two-thirds of the airport's current area of 1,500 hectares. Upon completion, Terminal 5 will increase Changi's passenger handling capacity to 140 million passengers per year, more than 1.5 times the current level of 90 million. In 2024, Changi welcomed nearly 67.7 million passengers.

Changi was also recently honored by Skytrax as the "World's Best Airport" in 2025, marking the 13th time it has received this title."

3D model simulation of Changi Airport after the completion of Terminal 5. Photo: Changi Airport

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According to the Airports Council International (ACI), airports capable of handling over 100 million passengers per year are classified as "mega-airports." Among the 10 such airports globally, three are located in Asia: Beijing, Tokyo, and Shanghai. ACI forecasts that air travel demand will increase by nearly 7% over the next 25 years. To meet this growth rate, airports in the Asia-Pacific and Middle East regions will see significant investment, with a total capital of up to $240 billion from 2025 to 2035 for upgrading existing infrastructure and building new airports.

Speaking at the groundbreaking ceremony, Singapore Prime Minister Lawrence Wong stated that the decision to build Terminal 5 is based on a long-term vision. "Air travel will continue to grow strongly, much of which will take place in the Asia-Pacific region," Prime Minister Wong said. In addition to building T5, Changi will expand its connectivity network to 200 cities, up from the current 170.

"Changi has connected our small island nation to the world, and at the same time, brought the world to Singapore. It is this connectivity that has driven the growth of our tourism, aviation, and logistics industries," the Prime Minister said. The aviation ecosystem currently contributes approximately 5% of Singapore's GDP.

Prime Minister Wong also emphasized that regional competition is intensifying, as Asian airports are increasing investment in modern infrastructure and accompanying amenities such as shopping and entertainment areas.

Hong Kong International Airport began operations on its third runway in November 2024 and is expanding Terminal 2, with the goal of serving 120 million passengers and 10 million tons of cargo annually by 2035.

In Thailand, Suvarnabhumi Airport in Bangkok inaugurated its third runway in September 2024, after commissioning a new satellite terminal a year earlier. Thailand has also announced plans for an eastward expansion to increase capacity by 2027.

In South Korea, Seoul's Incheon Airport completed its 4th expansion phase in December 2024, increasing its capacity to 106 million passengers per year, up from 77 million previously.

Thomas Pellegrin, Transportation and Hospitality Lead at Deloitte Southeast Asia, noted that Asia is becoming the center of aviation industry growth after the pandemic. This growth is largely due to an expanding middle class, with a higher propensity to spend on air travel than their income growth. High urbanization rates also provide residents with easier access to airport infrastructure.

"Short-term, air travel demand in Asia is projected to increase by 7.9% and long-term by 5.1%—the highest in the world and far exceeding developed markets," said Pellegrin. According to him, this means Asian airports need to prepare to accommodate double the number of passengers and aircraft by 2043, putting significant pressure on existing infrastructure.

Terminal 5 will also play a crucial role in Singapore's strategy to increase tourism revenue from a record $29.8 billion in 2024 to $47-50 billion over the next 15 years.

Singapore's "Tourism 2040" strategy focuses on two target groups: business travelers and transit passengers, according to Minister for Sustainability and the Environment Grace Fu. She stated that the government aims to triple revenue from business travelers attending conferences, seminars, and exhibitions.

Melissa Ow, Chief Executive of the Singapore Tourism Board, shared that transit and transfer passengers currently account for about one-third of Changi's passenger traffic.

According to Deloitte, Terminal 5, along with the Changi East project, which includes a third runway and an aerospace industrial park, will help Singapore maintain its position as a leading aviation hub, expand international connectivity, and solidify Changi's position as the world's best airport.

"All these factors create a unique soft power advantage for Singapore on the international stage," Pellegrin commented.

Anh Minh (Theo CNBC)