Incheon Airport duty-free tenders to be Launched soon
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Incheon Airport duty-free tenders will be released in the fourth quarter of this year.
The airport, thought to be the world’s most lucrative for retail, has committed to a fair-tender process for both international and local retailers seeking spots in its Terminal 1 building. Almost all Terminal 1 duty-free concessions are scheduled to expire in August next year.
The 12 duty-free concessions at the terminal are now run by seven Korean firms, including general duty-free retailers Lotte, The Shilla, and Shinsegae, although the airport’s management is encouraging foreign participation in the upcoming tender.
“The door is always open,” said Incheon Airport’s director of concessions planning Dong-ik Shin. “There is no discrimination against any foreign duty-free operators. Our bidding process is very fair and transparent; the whole bidding process is done in public.”
Incheon Airport is offering a new arrangement for the duty-free concessions that doubles the previous contract length to ten years and adopts a concession fee based on passenger growth rather than the current minimum annual guarantee model (MAG).
According to Shin, the new 10-year contract makes it “a very significant and nice opportunity” considering the lucrative sales revenues available at IIA.
Questions & Answers
Q.When are the Incheon Airport duty-free tenders expected to be issued?
When are the Incheon Airport duty-free tenders expected to be issued?
The tenders for Incheon Airport's duty-free concessions are scheduled to be released during the fourth quarter of this year. This timing precedes the expiration of nearly all current Terminal 1 concessions in August next year.
Q.What new contract arrangements are being offered for the duty-free concessions?
What new contract arrangements are being offered for the duty-free concessions?
The airport is offering a new contract length of ten years, double the previous term. Also, the concession fee model will now be based on passenger growth, replacing the current minimum annual guarantee system.
Q.Which companies currently operate the duty-free concessions at Terminal 1?
Which companies currently operate the duty-free concessions at Terminal 1?
Currently, seven Korean firms operate the 12 duty-free concessions in Terminal 1. These include well-known general duty-free retailers such as Lotte, The Shilla, and Shinsegae, among others.
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