INDONESIA. Nine companies are set to battle it out for the duty free (including some duty paid) concession at Ngurah Rai Airport – Bali’s new International Terminal, The Moodie Report can reveal.

Reliable supplier sources have confirmed that incumbent Inti Dufree Promosindo DFS faces potential competition at the Request for Proposals (RFP) stage from Korean rivals Lotte Duty Free and HTSR Indonesia (Shilla Duty Free), as well as Flemingo, LS travel retail, Dufry, The Nuance Group, World Duty Free Group and Plaza Bali Heinemann, an interesting partnership between local travel retailer Plaza Bali and Heinemann Asia Pacific.

As reported, Angkasa Pura Airports together with GVK reported strong interest from the Requests for Qualification (RFQ) issued recently for the duty free/duty paid, food & beverage and Retail/Spa/Currency Exchange concessions at the new International Terminal of Ngurah Rai Airport – Bali.

This table of top tourist arrivals by nationality helps explain the attraction of the Bali tenders

Full details of the duty free concession plan, including floor plans, will now be disclosed in the RFP which follows the RFQs.

As revealed by The Moodie Report, Indian airport group GVK has signed a contract with the Indonesian state-owned airport operator Angkasa Pura Airports to jointly manage Ngurah Rai Airport non-aeronautical commercial operations. The airport (also known as Bali International Airport), is the country’s second-busiest.

The F&B RFQ also attracted intense interest with 48 companies responding to the RFQ and 31 of them qualifying for the RFP stage.

Location: International Departure – Walk-through store – 1,142sq m
International Departure – Whisky store – 308sq m
International Pier – Satellite – 100sq m
International Mezzanine – Crew store – 154sq m
International Arrival – Duty Paid – 500sq m

Sales rights: Perfume & cosmetics, liquor & tobacco, confectionery & fine food

Term: Five years

COMMENT: The heavyweight list of duty free retailers lining up to contest this concession underlines how the market sees the scale of the opportunity at Ngurah Rai Airport. Aside from incumbent Inti Dufree Promosindo DFS – which can be expected to robustly defend its position in the market – the presence of Korea’s two largest duty free players (Lotte already has a presence at Jakarta Airport) ensures the bid will be ultra-competitive. And that’s before considering the long list of other strong contenders, which from Flemingo to World Duty Free Group to an intriguing partnership involving Heinemann Asia Pacific and Plaza Bali, adds global flavour to the line-up.

Many of the participants will feel their strong understanding of the Bali passenger base gives them a healthy chance to influence the business. Of the nine countries to generate over 100,000 visitors to Bali in 2011, four (Japan, South Korea, Taiwan and China) were high-spending North Asian nations, which many of the retailers know intimately through their other operations. These are complemented by useful travel retail spending nationalities from Malaysia, Singapore, France, the UK and a huge Australian base.

Indonesians too are increasingly among the highest spenders in many global travel retail locations. In Singapore, for example, they are among the major sources of tourism-related spending, and they will be well-known to Changi Airport retailers DFS, Nuance, LS, Heinemann and Lotte.

This bid was already one of the most eagerly awaited of the year in Asian duty free – with the lineup now established it’s also likely to be one of the most hotly contested.

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