InfoQuest (September 23, 2019) -- The Board of Directors of the Airports of Thailand (AOT) has approved licensing guidelines on duty free pick-up counters at the 11/2562 meeting on September 18, 2019. The AOT will adopt a two-tier system.
One model is that the AOT provides its own duty free pick-up counters for consumers. Yet another means is to auction off common-use duty free pick-up counters, in order to provide convenience for passengers and operators of downtown duty-free shops to increase tourism revenue of Thailand.
The AOT board approved a resolution to approve the guidelines on granting licensing in airports under its management at the 3/2019 meeting on February 20, 2019. It also agreed on the issuing of three contracts including duty free, ‘Retail’ (food & beverage, services and foreign exchange) and duty free pick-up counters. This move aimed at promoting fair and free competition, especially in duty free pick-up counters, and ensuring that the operators of duty-free shops located in the downtown can trustingly deliver the duty-free goods to the AOT's airports.
Before then, the airport board had appointed executives to study the licensing guidelines for duty free pick-up counters. Based on the research results, the AOT thus proposed the two-tier system: (1) The AOT offers its own duty free pick-up counters. (2) The AOT auctions off common-use duty free pick-up counters. These actions will be beneficial in creating fairer free competition as well as improving convenience for tourists by enabling them to buy duty free goods and collect them at the airport. Meanwhile, this will also add to the tourism revenue, and increase the non-aeronautical revenues of the AOT.
According to the requirements of the tender this time, the winning bidder needs to offer convenience for other downtown duty-free shop operators to use its own duty free pick-up counter services. The tender will cover a wide range of operators. It will not only be open to duty-free shop operators, but also general entrepreneurs. In addition, in order to provide more options for downtown duty-free shop operators, the AOT will also set up its own duty free pick-up counters.
Following the adoption of the above resolution by the airport board, the AOT will appoint a working group to draft licensing criteria for common-use duty free pick-up counters in Suvarnabhumi Airport and Don Mueang International Airport. The draft work is expected to be completed in November 2019, with the sale of bidding documents starting the following month.
Regarding the tender for commercial operations of duty-free shops, the AOT also decided to separate the tender of duty free pick-up counters and duty-free shops at Don Mueang International Airport. Licensing criteria for operating duty-free shops are being worked out, and bidding documents are expected to be completed and published in October 2019.
Source: InfoQuest, by Saowalak Ouypron/ Rachada, translated by Xinhua Silk Road
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