CHINA. The two-pronged open tender covering the departures and arrivals duty-free concessions at Beijing Capital International Airport has attracted an all-Chinese line-up of contenders.
As reported, bids closed Friday (19 December) on the tender issued by Beijing Capital Airport Commercial & Trading Co (BACT). The contracts embrace the departures and arrivals duty-free concessions at Terminal 2 and Terminal 3.
The Moodie Davitt Report understands the T2 tender is being contested by incumbent China Duty Free Group (CDFG), Wangfujing Duty Free and China National Service Corporation (CNSC).
The T3 bid attracted offers from CTS (HK) – part of CDFG’s parentage alongside China Tourism Group – CNSC and CDFG. Each tender needed to attract a minimum field of three to proceed, which may explain the CTS presence alongside CDFG.
In 2017 BACT awarded the two concessions to China Duty Free Group (T2) and Sunrise Duty Free (T3), respectively, following a similar dual tender. Before that the businesses were run under a single concession by Sunrise Duty Free (China) Co.
Bidders could submit proposals for both concessions (see details below), but a single retailer can be awarded no more than one contract.
Sunrise Duty Free no-show
As widely anticipated, incumbent Sunrise Duty Free (China) Co did not bid, mirroring the situation in the recently concluded duty-free tender for Shanghai Pudong and Hongqiao international airports, which saw Sunrise Duty Free (Shanghai) Co Ltd unable to bid due to a clash with its 51% parent company CDFG.
A total duty-free area exceeding 14,000sq m is on offer for concessions, which run for nearly eight years until 10 February 2034.
The results are expected to be announced in coming days.
Shanghai surprise
However, as reported, China Duty Free Group completed the 51% acquisitions of Sunrise Duty Free (Shanghai) Co Ltd and Sunrise Duty Free (China) Co Ltd during 2017 and 2018, an agreement that has turned out to have profound repercussions for the respective Shanghai and Beijing tenders.
Until recently, it was widely assumed that status quo would prevail in Beijing but the result has been thrown into doubt by the shock outcome of the combined duty-free tender for Shanghai Pudong and Hongqiao international airports, which saw CDFG and Avolta – as Dufry (Shanghai) Commercial Co – splitting the spoils.
Retailer/airport joint ventures in Beijing and Shanghai
As reported, both retailers will operate in a joint venture with the airport company, CDFG and Avolta each holding 51%.
Dufry (Shanghai) Commercial Co and the airport will collectively operate the international departures and arrivals duty-free concession for Shanghai Pudong International Airport Terminal 1 and Satellite Hall 1 (S1), while CDFG snapped up Pudong’s T2 and Satellite Hall 1 contracts, again to partner with the airport company.
CDFG was also awarded the departures and arrivals duty-free JV concession at Shanghai Hongqiao International Airport T1.
As reported, BACT said the 2025 tender marks a new strategic allocation of commercial resources at Beijing’s main aviation hub.
“As one of China’s most critical aviation gateways, this large-scope tender for duty-free concessions at Beijing Capital International Airport represents a significant market-oriented operation of its commercial assets,” the company observed.
“It is also a key measure to enhance passenger consumption experience and boost the airport’s non-aeronautical revenue. The commencement of this new operational cycle signals that Beijing’s airport commercial services are poised to enter a new phase of development.”
From our earlier coverage
Tender overview
Remarkably substantial in its scope, the tender involves a total combined area reaching 14,213.07sq m, of which 2,355.28sq m is arrivals duty-free space, and 11,857.79sq m is allocated to departures.
The tender is divided into two concessions:
Concession 1 (T3): Total area of 10,646.74sq m
- Arrivals duty-free shop: 1,938.72sq m
- T3E departures duty-free shop: 8,310.19sq m
- T3D departures duty-free shop: 397.83sq m
Concession 2 (T2): Total area of 3,566.33sq m
- Arrivals duty-free shop: 416.56sq m
- Departures duty-free shop: 3,149.77sq m
As noted, bidders may submit proposals for both, but a single bidder can be awarded no more than one concession.
The tender announcement explicitly states that if a bidder is ranked as the top candidate for both concessions, they must voluntarily withdraw from one of them.
This measure is designed to “ensure operational diversity and foster healthy competition”.✈
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