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Asia’s airport wars continue as Hong Kong reveals revamped Terminal 2

Shuai Zhang and Chris Lau, CNN

Hong Kong (CNN) — Amid the constant hustle to be recognized as one of the world’s best airports, Hong Kong International has quietly opened up an expansion. It’s a small but key first step in the airport’s plan to become a bigger global aviation hub.

Hong Kong International (HKG) is currently ranked the fourth best airport in the world, but it doesn’t get the same amount of shine as its neighbor and competitor in first place, Singapore’s Changi (SIN).

HKG launched its upgraded Terminal 2 on Wednesday, gearing up for growing regional competition as officials seek to benefit from air traffic rerouted by the Iran war — but the event drew little fanfare from the public at home.

The newly renovated and expanded 3.2 million-square-foot terminal will be powered substantially by automated technology, including bag self-drop points, smart check-in kiosks and hybrid check-in counters. One airport official claimed that passengers could “complete the check-in process in 45 seconds.”

Even seasoned travelers who have been through HKG before will likely get a different experience in the new terminal. Fred Lam, the authority’s chairman, said that T2 is aimed at younger travelers. That’s likely why Filipino fried chicken chain Jollibee, a clothing store featuring local designers and an arcade full of claw machines are among the more than 20 shopping and dining options at the new departure concourse.

Bright LED screens welcome visitors to the terminal. On opening day, they were lit up with images of ocean waves and floating fish. The structure itself has a curved ceiling adorned with parallel lines.

The Hong Kong Airport Authority, which manages HKG, estimated that Terminal 2 will serve eight million travelers in the first year, with capacity growing to 30 million annually.

On top of Terminal 1’s annual capacity of 70 million, the entire airport will see 100 million travelers annually, a significant jump from 2025’s 61 million. Compare that to New York City, which saw 142.2 million people pass through its three international airports in 2025.

Despite being billed as a “milestone,” Wednesday’s launch attracted little enthusiasm, with the new concourse looking largely empty. Hometown low-cost carrier Hong Kong Airlines was the only airline operating on opening day, but now other budget airlines like AirAsia, Hainan Airlines and Malaysia’s Batik are beginning operations there as well.

The renovation, which took over five years to complete, has been costly. An earlier estimate of $1.2 billion in 2010 ultimately swelled to $1.65 billion.

Intense regional rivalry

Yet, the reopening won pledges of support from the Hong Kong government during a launch ceremony earlier this week. An official affirmed Hong Kong airport’s positioning as “an international aviation hub,” a role Beijing has also repeatedly instructed the semi-autonomous city to take on as part of its strategic national plan.

But turbulence abounds as it faces intense competition from regional rivals such as Singapore’s Changi Airport, which has long been stepping up its game. Skytrax, an international organization that annually ranks the world’s best airlines and airports, named Changi number one in 2026 and 2025. Fourth place Hong Kong, meanwhile, was recognized for having the world’s best airport bathrooms as well as the best airport security processing.

This week, social media users posted videos of 11 Skies, the largely empty megamall adjacent to Terminal 2, mocking how “desolate” it appeared. With its glowing purple facade, it was originally earmarked as a retail and entertainment landmark. At the moment, only two restaurants (out of a planned more than 100) are open.

In comparison, the Jewel Changi Airport shopping mall has been truly embraced as a travel destination, with visitors flocking to its extremely Instagramable artificial waterfall to take pictures.

“Jewel is huge. It’s a mall, obviously, but the attraction is not just retail. There’s a huge waterfall there, there’s a garden,” said Shukor Yusof, an aviation analyst at Singapore-based Endau Analytics. “In itself, it’s an attraction.”

Andrew Yuen, executive director at Aviation Policy Research Center at the Chinese University of Hong Kong, said Hong Kong’s airport also faces threats from other air hubs in nearby Chinese cities.

“We face keen competition from Guangzhou Airport and Shenzhen Airport. They actually expand very fast in terms of their runways,” he said. “I do believe the Terminal 2 will help Hong Kong to strengthen the aviation hub status.”

To that point, Guangzhou Baiyun (CAN), which is just two hours’ train ride north of Hong Kong, was the ninth-busiest airport in the world last year.

Meanwhile the US and Israel’s war on Iran, which has disrupted air traffic and oil supplies, has actually propelled some of Asia’s aviation hubs.

Hong Kong International Airport saw a 19.6% year-over-year jump in passengers for March 2026, while Changi recorded 8.5% growth.

The instability has led some travelers to avoid Middle East carriers, including Emirates and Qatar Airways, and switch to airlines in Asia, such as Singapore Airlines and Cathay Pacific, said Yusof, who added that this concern will last.

“What has happened over the last two months indicates to a lot of people that things are not going to be safe for a while,” he said.

Meanwhile, he said, Hong Kong’s aviation scene has one major asset that puts it ahead of Singapore: a reservoir of mainland Chinese tourists.

“You don’t really depend on, unlike Singapore, people from all over the world to come and visit,” he said.

“Hong Kong needs to rediscover that spirit of doing more things, not just in business, not just in banking or finance, but in also attracting. It’s a fantastic place.”

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