World's Top Airport Unveils Mega Terminal to Capitalize on Asian Travel Boom

• Changi's Terminal 5 will boost the airport’s yearly capacity up to 140 million passengers, an increase from the present 90 million.
• Singapore Prime Minister Lawrence Wong stated that the choice to construct Terminal 5 was due to increasing air traffic, noting that "most of this expansion will occur within the Asia-Pacific area."
• This step comes after expansion initiatives were finished in various other Asian nations like South Korea, Thailand, and Hong Kong.

Asia is poised for a major travel boom, with nations across the region preparing to capitalize on this increase in demand.

On Wednesday, Singapore's Changi Airport commenced construction of its fifth terminal, anticipated to become operational in the middle of the 2030s.

The newly constructed terminal occupies a site measuring 1,080 hectares, nearly doubling the current expanse of Changi Airport.

This will allow the airport to handle 140 million passengers per year from its current capacity of 90 million passengers. Changi, which was most recently awarded Skytrax's "World's Best Airport" in 2025 for the 13th time, welcomed 67.7 million passengers in 2024.

Airports capable of accommodating over 100 million passengers each year are categorized as mega airports, with three among the current ten located in Asia, as stated by the Airport Council International, an organization representing the aviation industry. These include facilities in Beijing, Tokyo, and Shanghai.

According to ACI projections, air travel is expected to increase by almost 7% over the coming 25 years. In response to this growth, airports across the Asia-Pacific and Middle East areas are set to experience significant expansion, involving total expenditures of $240 billion from 2025 through 2035 aimed at enhancing current infrastructure as well as constructing new terminals.

At the sod-breaking ceremony, Singapore Prime Minister Lawrence Wong stated that the choice to construct Terminal 5 stemmed from the fact that "in the long run, air travel is increasing steadily, with most of this expansion occurring within the Asia-Pacific area."

Wong also said that with Terminal 5, Changi will aim to connect with 200 cities, up from the current 170 city links it has now.

"Changi has linked our tiny island country with the rest of the globe, and also introduced the global community to Singapore. This interconnectedness has fueled our expansion as an air hub, boosting sectors such as tourism, aerospace, and logistics," Wong stated, highlighting that the aviation sector currently accounts for 5 percent of Singapore’s Gross Domestic Product.

Expansion spree

Wong pointed out that competition in the area is escalating as well. To illustrate, Asian airports are putting considerable effort into upgrading their infrastructure along with related amenities such as entertainment zones and shopping areas.

The Hong Kong International Airport launched a third runway in November and is currently extending Terminal 2. As stated, the airport's objective was, aiming to cater to 120 million passengers and manage 10 million tonnes of cargo each year starting from 2035.

Bangkok's Suvarnabhumi Airport opened a third runway in In September 2024, enhancing the airport’s capacity to accommodate additional flights, after completing an upgrade. new satellite terminal a year earlier.

Thailand's airport operator also revealed a further "The Eastern Extension" initiative aims to boost the airport's capacity by 2027.

In South Korea, Seoul's Incheon International Airport finished its "Phase 4 expansion" in December, enabling it to accommodate an annual passenger capacity of up to 106 million from 77 million, thereby making it the globe's third-biggest airport.

Thomas Pellegrin, the Transportation, Hospitality, and Services Sector Leader for Deloitte Southeast Asia, stated that Asia has emerged as the "barycenter" of air travel expansion following the Covid-19 pandemic.

He pointed out that this rise in air travel can be attributed to the growing middle-class population, where the desire to fly escalates more rapidly than their income levels. Additionally, the significant degree of urbanization in the area facilitates connections between individuals and aviation infrastructure.

Pellegrin further noted that the anticipated rise in passenger demand within the region is projected to be 7.9% in the short term and 5.1% in the long run, making it the highest globally and significantly surpassing those of established markets.

He stated that this indicates Asian airports must handle approximately double the number of travelers and planes by 2043, exerting significant strain on current facilities.

Tourism boom for Singapore

Terminal 5 will also contribute to Singapore's strategy to boost tourist income within the city-state From a record-breaking $29.8 billion in 2024 to between $47 billion and $50 billion over the coming 15 years.

Singapore’s “Tourism 2040” strategy focuses on boosting interest from two specific segments—business visitors and those on stopovers, according to Grace Fu, who serves as the country’s minister for sustainability and the environment, she stated back in April.

Specifically, officials plan to increase tourism income from business travelers participating in meetings, incentives, conventions, and exhibitions threefold, according to Fu.

As stated by Melissa Ow, the CEO of the Singapore Tourism Board, transit and transfer travelers now account for one-third of the total traffic at Changi Airport.

Terminal 5, along with the larger Changi East project—which encompasses a third runway and an industrial area—will enable Singapore to maintain and expand its position as an aviation hub. This initiative aims at boosting connectivity and reinforcing Changi’s status as the top airport globally, according to Pellegrin from Deloitte.

Collectively, all these impacts allow Singapore to exert an oversized 'soft power' globally.