Tense contest ensues for Beijing Capital International Airport duty free awards

bcia bejing airport logo leadCHINA. The fate of the two duty free concessions at Beijing Capital International Airport hangs in the balance after bids closed this week and the financial offers were revealed. The results of the technical evaluation, critical to the final result, have not yet been published.

Awards are expected in late April or early May.

As reported, the airport operator issued a dual tender notice covering its duty free retailing concessions at Terminals 2 and 3 on 24 February. Bids closed earlier this month. The businesses are currently run under a single concession by Sunrise Duty Free.

The two tenders were issued through Beijing World Trade Corporation, which Beijing Capital International Airport appointed as its bidding agent last year.

Beijing Airport table
Source: Duty Free Expert

According to Duty Free Expert, the specialist Chinese media platform run by Jason Cao which The Moodie Davitt Report works closely with, the T2 financial bid was topped by CDFG, ahead of Zhuhai Duty Free, China National Service Corporation for Chinese Personnel Working Abroad (CNSC) and Shenzhen Duty Free.

The highest bidder, surprisingly, for T3 was Zhuhai Duty Free, ahead of Sunrise Duty Free and Shenzhen Duty Free.

The tenders cover:

1) T2: international terminal departures area – 3,186sq m; arrivals zone – 417sq m
2) T3: outbound international – 9,461sq m; arrivals 1,939sq m

Categories covered by the contract include perfume & cosmetics, tobacco & liquor, confectionery, fashion and accessories, watches, jewellery and other items.

Beijing Capital International Airport handled 94,393,000 passengers in 2016 (domestic and international), up +5% year-on-year.

In January 2017, the airport handled 8,180,000 passengers, a +8.6% increase in year-on-year. Passenger numbers on international, Hong Kong, Macau and Taiwan routes rose +10.5% year-on-year.

Footnote: The outcome of the Beijing bid has significant repercussions for the future relationship between CDFG and Sunrise Duty Free. Click here for the March statement on the matter by CDFG parent company China International Travel Service Corporation, which is all that can be said at this stage.

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