Interested parties have until 30 April to submit proposals to Airports of Thailand (AoT) for the duty free concession at Bangkok Suvarnabhumi, Phuket, Chiang Mai and Hat Yai International Airports.

Bidding for the duty free contract will open on 19 March and the agreement will run from 28 September 2020 to 31 March 2021 (a total of 10 years and six months).

Tender documents can be purchased for THB2.5m ($78,692) until 1 April and the winning bidder will be announced on 10 May (after 9:30).

AIRPORT TOURS

Tours of the available duty free spaces will take place at Bangkok Suvarnabhumi, Phuket, Chiang Mai and Hat Yai on 5 April, 9 April, 10 April and 11 April respectively. Technical details of the bids will be presented on 2 May and 3 May.

King Power International is the incumbent duty free operator across all major Thai airports. Its contract expires in September 2020.

As reported, three contracts will be offered by AoT, as part of a restructured commercial tender.

One is for duty free across the aforementioned four airports and another is for retail, food and beverage and foreign exchange. The final concession is for duty free pick-up counters. The timline this tender is yet to emerge.

The structure of the duty free tender had been up for debate in recent months. Retail groups such as the Thai Duty Free Shop Trade Association and Thai Retailers Association had urged AoT to split the duty free concession at Bangkok Suvarnabhumi Airport and offer multiple duty free concessions by category to maximise benefits. But their efforts have been in vein.

In terms of the duty free tender criteria, individual companies or joint-ventures are invited to participate. This is providing they have operated retail space spanning at least 5,000sq m in Thai department stores/shopping centres for at least five years continously.

If they do not meet the above criteria, companies or joint-ventures can still participate if they have operated at least 500sq m of duty free space in Thailand or overseas for at least five years continously.

Those tendering for the other commercial concessions must have operated retail space spanning at least 10,000sq m in Thai department stores/shopping centres also for at least five years continously. This contract will also run from 28 September 2020 to 31 March 2031.

Meanwhile, AoT has revealed it is looking to select ‘professional entrepreneurs’ to manage the non duty free commercial business at Bangkok Suvarnabhumi.

A tour of the available spaces scheduled for 5 April (1pm onwards). Technical details of the bids will be presented on 7 May and 8 May. The deadline for submissions is 30 April and the highest bidders will be announced on 10 May (after 1pm).