Macau International Airport releases RFP for Sky Shilla duty free concession

By Luke Barras-hill |

SkyShilla_main

The Sky Shilla Duty Free joint venture between Sky Connection and The Shilla Duty Free won a five-year contract in 2014.

Macau International Airport Company Limited (CAM) has issued a request for proposal to operate the north duty free services subconcession at Macau International Airport (MIA).

The five year contact, which runs from 7 November to 6 November 2024, covers a variety of shops and kiosks totalling approximately 1,122sq m at the North Departure Level Airside of the Passenger Terminal Building.

It is currently held by The Shilla Duty Free and Sky Connection joint venture Sky Shilla, whose five-year concession expires in November.

WINNING BID DUE OCTOBER

The deadline for submissions, which includes the set-up, design, layout, concept development of the facilities and construction of the duty free shop, is 12 noon (local time) 29 July.

Interviews and presentations are due to take place in October, with the winning concession to be notified in the same month.

Shilla/Sky Connection was appointed alongside King Power Group for two five-year DF&TR airside departure contracts in 2014, with KPG last year winning the Southside concession in a joint venture with partner King Power Macau and China Duty Free Group.

ConcessionMacau_RFP

In a submission document, CAM says it will consider bids that deliver ‘world-class’ duty free services, a range of products, high-quality facilities, innovative retail concepts at competitive prices, and services that raise passengers’ experiences.

Similar to the judging criteria in 2014, proposals for the north duty free sub-concession will be judged on 1,000 evaluation points.

These will be based on the following: experience and qualifications (200), customer service (200), financial (280), marketing and operation plans (200), design and proposed capital investment (120).

L&T/P&C TAKES MAJORITY SHARE

The subconcessionaire will pay to CAM an occupancy fee (calculated at MOP600/US$74 per square metre per month for the 1,122sq m), in addition to a 40% condominium fee; a commission based on an agreed fee multiplied by gross net sales; and a minimum annual guarantee.

Macau_kioskandstorerfp

The winning bidder will renovate and operate a series of shops and kiosks located at the North Departure Level, Airside of the MIA Passenger Terminal Building. Source: CAM. Click to enlarge.

The category share of the duty free subconcession will be demarcated along the following lines: liquor & tobacco and perfumes & cosmetics (60%); general merchandising, packaged confectionery, books, jewellery & watches, branded fashion and electronics (40%).

Proposers, including single entities or groups comprising shareholders possessing at least a 25% share capital in the bidding party, must possess experience operating duty free shops in at least two international airports.

Proposals should be addressed to the following: Chairman of the Executive Committee Macau International Airport Company Limited (CAM) 4th Floor, CAM Office Building, Avenida Wai Long, Taipa, Macau S.A.R.

Performanceevaluation_Macau

Source: CAM. Click to enlarge.

CAM was awarded a 25-year contract by the Government of Macau’s Special Administrative Region, which holds a 55.24% shareholding in CAM, to build, manage and operate the airport in 1989. This was extended in 2001 for a further 25 years until 2039.

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