Deadlines to register and submit proposals for the new Seoul Incheon Terminal 1 duty free tender have been extended.

The initial registration deadline was 14 September (10:00-16:00 KST), but it has now been extended to 21 September (10:00- 16:00 KST).

In addition, the deadline to submit business and financial proposals has moved from 15 September 2020 (10:00-16:00 KST) to 22 September (10:00-16:00 KST).

Meanwhile, there are also some additional guidelines for participants relating to the presentation of financial proposals.

When the fresh tender was released, interested parties were told the minimum annual guarantee (MAG) for the first year (12 months) and second year (12 months) of business must be larger than the estimated amount generated for each year of the contract.

NEW MAG CONDITIONS

According to several addendums associated with the terminal one tender, which were seen by TRBusiness, the proposed MAG for the first year of business (12 months), must now not be above the proposed MAG for the second year of business (12 months).

In reference to the evaluation process, which carries a maximum score of 40 points for general enterprises and 20 points for small and medium-sized enterprises, applicants could receive zero points if the MAG for the first year of business is equal to or higher than the MAG for the second year of business.

With Incheon reporting traffic losses of circa 90-97% between March and April 2020 and -97% in June (compared to June 2019) the amendments are hardly surprising as it is difficult to make long-term traffic projections in the current climate.

As reported, Incheon International Airport Corporation announced a fresh tender for the undecided Terminal 1 contracts on 6 August 2020.

Six packages (four general enterprise; two small and medium-sized enterprises) covering 33 shops and 6,131sq m, part of the original eight concessions revealed in the January T1 tender, will return to market in a competitive bid process.

The five-year leases (extendable by five years) concern perfume & cosmetics (DF2); liquor, tobacco and food (DF3, DF4); fashion/misc (DF6); and all items (DF8, DF9).

At this stage, it is uncertain which retailers will participate in the tender — Lotte Duty Free has confirmed to TRBusiness it is reviewing the tender documents —but they will certainly be buoyed by last week’s announcement of further rent-related relief measures as they ponder their participation.