MACAU. King Power Group (HK) and a joint venture between The Shilla Duty Free of South Korea and Sky Connection of Hong Kong are set to begin their new duty free concessions at Macau International Airport this week (7 November).
Macau International Airport Company Limited (CAM) confirmed the award of the five-year contracts in a statement today. It follows a protracted evaluation and approval period by the airport and local government. The Moodie Report broke the news about the winning bidders in August.
CAM said: “After the process of an open request for proposals, CAM has entered into five-year sub-concession contracts commencing from 7 November 2014 with King Power Duty Free (Macau) Company Limited and Sky Shilla Duty Free Limited for the operation of duty free services at the South and North of the airside Departure Hall in Macau International Airport, respectively.
“Macau International Airport warmly welcomes the dual duty free operators and will collaborate with them in creating a new era for duty free shopping experience for passengers.”
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King Power Group (Hong Kong) has operated at Macau Airport since 1995, successfully refurbishing its offer over recent times |
As we previously reported, CAM issued a request for proposals (RFP) for its duty free business on 10 April, for the first time opting for a dual concession model. Bids closed on 3 June.
Incumbent King Power Group (Hong Kong) has operated on an exclusive basis at the airport since 1995, rejuvenating the offer successfully in recent times. Duty free sales reached US$162.8 million in 2013, an increase of around +13% year-on-year.
Macau International handled just over five million passengers in 2013 (and has total capacity of six million) and currently has 2,260sq m of shopping space. Non-aeronautical revenues rose by +15% in 2013, ahead of a +12% passenger increase.
Besides the tender, the first half of 2014 saw a series of enhancements made to the airport, including an extension project, the opening of a new CIP Lounge and new restaurants and other construction upgrades.
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In its bid evaluation, CAM placed a greater weighting on non-financial criteria |
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Retailers could bid on one or both options but a single operator cannot run the two concessions |
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Source: Sociedade do Aeroporto Internacional de Macau (CAM) |
