THAILAND. Airports of Thailand (AOT) announced today it has awarded a new ten-year duty free concession to King Power Duty Free.
The airports body said it has increased its minimum guarantee for the 10-year concession to THB16.7 billion (US$426.5 million) from THB15 billion (US$383.4 million).
King Power (no relation to the Hong Kong-based King Power Duty Free Group) is one of Asia’s most acclaimed duty free retailers. The contract covers all tax and duty free items, including fragrances and cosmetics, gifts, confectionery and wines and spirits.
The Moodie Report has confirmed that the new concession runs from 29 September 2005 to 31 December 2015. Under the contract terms, King Power will operate duty free services at four AOT airports, including Bangkok International Airport, Chiang Mai International, Phuket International Airport and Hat Yai International Airport.
King Power will pay 15% of its gross revenue to AOT during the first five years. The revenue sharing will increase by one percentage point every year for the following period.
King Power is also required to make an advance payment of THB2.5 billion (US$63.8 million) when it signs the contract.
In addition, the concessionaire must sell the duty free goods at a lower rate than other airports in the region, AOT said.
Note: This development will be covered in a major interview with newly-promoted King Power Duty Free deputy managing director Susan Whelan coming soon on The Moodie Report.com
OTHER RECENT KING POWER AND THAI TRAVEL STORIES
Thailand sees tourism level with 2002 – 6 October 2003
King Power International ends privatisation-related dispute – 20 September 2003
King Power International goes back down the private road – 17 May 2003
