King Power International is in pole position for the Bangkok Suvarnabhumi International Airport duty free concession after Airports of Thailand (AoT) revealed today (31 May) it was the highest bidder in the high-profile and highly controversial duty free tender.
The long-standing incumbent, which has held the concession since 2006, overcame intense competition from a Bangkok Airways/Lotte Duty Free consortium and an alliance comprising Royal Orchid Sheraton Hotel Thailand and Dufry Group. The current King Power International contract expires in September 2020.
The new contract will cover around 20,000sq m of space at BKK and include the new satellite terminal at the airport which is due to open in 2020/2021. It is understood the new agreement will run from 28 September 2020 to 31 March 2031.
Proposals for the BKK duty free tender were submitted on 22 May 2019 and a total of five companies, including Minor International and Central Department Store initially expressed an interest in participating when the tender documents were available for purchase between 1 April and 18 April.
According to an announcement in Bangkok today (31 May), from Wichai Bunyoo, Senior Executive Vice President, Business Development and Marketing, AoT, King Power International submitted a higher financial bid than the airport operator expected. The proposed terms are also understood to be much higher than than those associated with the current contract.
The results of the tender will be presented to AoT’s Revenue Review Committee on 12 June and the AoT Board of Directors on 19 June 2019.