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.