SAUDI ARABIA. Jeddah King Abdulaziz International Airport (KAIA) is issuing a Request for Proposals (RFP) for the eagerly anticipated duty free contract encompassing both Terminal 1 and the North Terminal. The bid looks set to attract strong interest from across the Middle East region and from around the world.
Terminal 1, opened in 2019, is the second largest single airport terminal in the world. The new duty free offering will feature almost 6,000sq m of retail space with a further 4,000sq m of walkway space that can be redesigned in part to increase the overall footprint. The airport company invites potential candidates to examine design recommendations for the use of this space and to create enhanced dwell time opportunities.
In the North Terminal, the retail offer, open to international travellers, is approximately 1,500sq m with what the airport company calls “a perfect walk-through experience for all passengers”.
KAIA VP Commercial Paul Neeson said: “We are thrilled to bring the duty free RFP for KAIA to market. It has been eagerly awaited by the duty free industry for some time now. Rarely a week goes by without a query from the major international players. We are delighted to present a proposition that truly encourages vendors to partner and to speculate with KAIA in an exciting period for KSA. We are delighted to now present exactly what the future holds for KAIA.”
He added: “Our vision is unbounded but grounded by Vision 2030, a rallying call for the entire Kingdom that seeks to move KSA away from a dependence upon oil revenues and that invites the world to visit by a significant relaxation on previous requirements for entry. Aviation and tourism sit proudly at the centre of Vision 2030.”
This year KAIA is set be the fastest growing airport of its size in the world, and will serve around 50 million passengers in years to come. It served 31 million passengers in 2022 and 37 million in the peak year to date of 2019.
This growth will continue in line with the ambitious Vision 2030 with plans for 114 million passengers in Jeddah by 2030. Jeddah’s positioning as the gateway to the two Holy Mosques of Mecca and Medina makes KAIA one of the major global growth airport opportunities for the next decade, noted the airport company.
Neeson added: “The new Terminal 1 [opened in 2019 -Ed] is simply stunning and fitting for the second largest terminal in the world. We now have the opportunity to match the splendour of the terminal building with a new vision for duty free and travel retail that places Jeddah amongst the best retail facilities in the region and globally.
“With total space for development exceeding 10,000sq m, it will allow retailers to truly express themselves. We call upon all participants to share their vision for how world-class retail should look when space constraints are removed. Retailers can not only highlight their product range but experiment with the space available to create a reason for passengers to arrive early and to dwell for longer.
“The retail area allows a fantastic opportunity to deliver genuine sense of place and to break existing boundaries of mindset in travel retail. We seek a partner who will work with us for the long term and is capable of seizing opportunities as the develop into the future.
“North Terminal is another proposition with a different passenger profile and journey to Terminal One. The terminal is an older building but perfectly shaped for retail and F&B from a passenger journey perspective. The terminal now requires a full refresh and a retailer that understands the benefit of creating a bespoke offer for the North Terminal passenger.”
Core categories for the tender are as follows: Beauty, confectionery (international and local) & food, tobacco, souvenirs, fashion & accessories and jewellery. Lagardère Travel Retail currently runs the duty free concession.
Closing date for submissions is 17 August. The RFP is launched today with 31 May the deadline for clarifications from bidders. Final discussions with the preferred candidates and a contract offer are scheduled to take place by the end of September.
All requests for RFP documents should be made to: DFRFP@Jeddahairports.sa
For further details please contact:
Jedco GM Commercial Strategy and Planning John Holland
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