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Egyptair Duty Free Shops beats international competition for the Hurghada T2 concession |
EGYPT. Egyptair Duty Free Shops has captured the duty free concession at Hurghada International Airport’s new Terminal 2, following a competitive auction today.
The duty free division of the national airline – one of the incumbents at the airport today – won the concession after a prolonged bidding battle featuring local and international players.
The tender was conducted by Egyptian Airports Company. As with Monday’s auction for Sharm el-Sheikh T2, the revenue share from all bidders was equalised at 37.5%, with an auction over the minimum annual guarantee (MAG).
After several rounds, the four companies left were Dufry, Egyptair, Flemingo and Heinemann Egypt. A final round, completed this afternoon, featured two bidders: Egyptair and Heinemann Egypt, with the local company winning out with a MAG of US$27.1 million.
The entire duty free business at Hurgada is said to be around US$37 million. A source close to the bidding noted that just 60% of future traffic will move to the new terminal, suggesting the MAG alone was “above the revenue which can be earned today”.
As reported, Heinemann Egypt – a partnership between Gebr Heinemann, Global Brands (controlled by the Toulan family) and local retailer EFSCO – won the Sharm el-Sheikh T2 business earlier this week. Yesterday, SSP was named winning bidder of the food & beverage concession at Hurghada.
A further bid for Sharm el-Sheikh T1 is expected in early May.
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A new terminal is being built as Hurghada Airport expands |
