Thailand approves guidelines for opening airport retail space to competition

[snoop1130]

Thailand approves guidelines for opening airport retail space to competition

 

FILE PHOTO: Tourists queue to check in at Suvarnabhumi International Airport in Bangkok, Thailand, January 16, 2018. REUTERS/Athit Perawongmetha/File Photo

 

BANGKOK (Reuters) - State-owned Airports of Thailand Pcl (AOT) approved guidelines on Wednesday for concessions for duty-free and commercial activities at its airports, as it prepares to open up retail space to new players.

 

AOT operates the six biggest airports in Thailand and will soon announce the terms of an upcoming auction for duty-free and retail concessions at Bangkok's international Suvarnabhumi Airport.

 

Under the guidelines approved, it is set to offer three retail licences at the auction.

 

King Power, owner of Britain's Leicester City football club, currently holds the sole licence for duty-free retail, commercial activity and pick-up counters at all of Thailand's major airports, but rivals including Central Group, the Mall Group and South Korea's Hotel Shilla are interested in bidding.

 

King Power's licence is set to expire in 2020.

 

Last month, retail groups petitioned Thai Prime Minister Prayuth Chan-ocha for multiple duty-free concessions, calling the current master concession monopolistic.

 

AOT said that there would be three contracts including duty-free retail, commercial activities such as restaurants and duty-free pick up counters.

 

The guidelines emphasise free competition, especially for duty-free pick up counters, which allow duty-free businesses downtown to deliver goods to passengers, AOT said in a statement.

 

AOT and the duty-free business is a major beneficiary of booming tourism in Thailand, which saw over 38 million passenger arrivals in 2018.

 

The airport operator said last week that its revenue from airport concessions rose 10.3 percent in October-December from a year earlier to 4.3 billion baht ($138 million) due to an increase in passenger arrivals.

 

-- © Copyright Reuters 2019-02-20

[overherebc]

Any chance these outlets will pay attention to what the customers want rather than 'this is what we sell so just pay up?'

[Seismic]

Now you see why Duty free at Thai airports is not a bargain.  Plus what is with all the 'luxury' shops ??, do people really buy a 85,000 baht leather jacket at an airport on their way home ???

[sammieuk1]

Sounds like the graft committee will be in action for another toothless investigation and day soon???? 

[mickymouse1]

It is very expensive to rent a smallish unit like 4x3m and you need good connections in high places or good biz connection even then you need to pay like $12k monthly.

Duty Free Yes but  OT HIGH PROFIT FREE.Thai Duty free stuff are very expensive in comparison to some regional Airports and DF.

[mike324]

13 hours ago, Seismic said:

Now you see why Duty free at Thai airports is not a bargain.  Plus what is with all the 'luxury' shops ??, do people really buy a 85,000 baht leather jacket at an airport on their way home ???

Well for the Chinese, its a bargain in Thailand because it cost even more for them in China. For name brand items, Thailand is on par with many other countries in Asia. During the sale season, bargain can be had as many name brands do go on 50%.

[overherebc]

13 minutes ago, mickymouse1 said:

It is very expensive to rent a smallish unit like 4x3m and you need good connections in high places or good biz connection even then you need to pay like $12k monthly.

Duty Free Yes but  OT HIGH PROFIT FREE.Thai Duty free stuff are very expensive in comparison to some regional Airports and DF.

For many things high street prices can lower.

[fruitman]

13 hours ago, overherebc said:

Any chance these outlets will pay attention to what the customers want rather than 'this is what we sell so just pay up?'

Last month at Don Muang i decided to eat breakfast at Mac D....

 

There was a chinese in front of me who couln't speak a word english...also the staff couldn't speak a word of that stuff.

 

So the chinese ordered in Chinese and the Thai replied in Thai....it took ages (long queue's behind us) but when she got the food it was not what she had ordered so again a long discussion started....Even the pictures on the menu didn't help ....????????

[overherebc]

13 hours ago, Seismic said:

Now you see why Duty free at Thai airports is not a bargain.  Plus what is with all the 'luxury' shops ??, do people really buy a 85,000 baht leather jacket at an airport on their way home ???

Not when they can get the same in the sales at home for minimum 50% off.

[Nyezhov]

14 hours ago, Seismic said:

Now you see why Duty free at Thai airports is not a bargain.  Plus what is with all the 'luxury' shops ??, do people really buy a 85,000 baht leather jacket at an airport on their way home ???

Every duty free in the known universe is "not a bargain"

[fruitman]

7 minutes ago, Nyezhov said:

Every duty free in the known universe is "not a bargain"

Depends of your homecountry to which you compare.

 

But the online shops in Europe are cheaper than any taxfree airport shop i have ever visited.

[Nyezhov]

24 minutes ago, fruitman said:

Depends of your homecountry to which you compare.

 

well Im from the USA so its never cheaper at a duty free, except smokes and booze. I guess if I was living in the 3rd world duty frees would impress.

[fruitman]

5 minutes ago, Nyezhov said:

well Im from the USA so its never cheaper at a duty free, except smokes and booze. I guess if I was living in the 3rd world duty frees would impress.

Oh i see, one of those...so because you're from the USA everybody must be from the usa.?

 

For me it's not even about the price anymore, if i can shop in a relaxed way i'll be happy to pay extra...that's why i like to shop in the Singaporean malls and airport. During shopping i go to smoke in their great smoking lounges and think about the crappy treatment i get in Thailand if was spending my money there.

[Nyezhov]

22 minutes ago, fruitman said:

Oh i see, one of those...so because you're from the USA everybody must be from the usa.?

Well, yeah. I mean everybody should be, not my fault that they arent.

 

22 minutes ago, fruitman said:

For me it's not even about the price anymore, if i can shop in a relaxed way i'll be happy to pay extra...that's why i like to shop in the Singaporean malls and airport. During shopping i go to smoke in their great smoking lounges and think about the crappy treatment i get in Thailand if was spending my money there.

I dont want to shop at an airport. I dont want to eat at an airport. I just want to go past security, fill my water bottles, get on the plane and go. If I am stuck in an airport for hours, then it sucks to be me, Ill try to sleep somewhere.

 

Oh and clean latrines. Thats the key to the airports of this world, clean latrines.  Im sure I have been through 200 airports, clean latrines are the key, screw duty free.

[CGW]

4 minutes ago, Nyezhov said:

Im sure I have been through 200 airports

Thats a lot of airports, could you list them all please and rank the toilets on a 1 - 10 scale - thank you ????

[fruitman]

10 minutes ago, Nyezhov said:

Oh and clean latrines. Thats the key to the airports of this world, clean latrines.  Im sure I have been through 200 airports, clean latrines are the key, screw duty free.

I try to avoid airport toilets since i have bad experiences with the ones at Swampy...the stench in there almost made me puke and since then i avoid them worldwide. Also in malls...

[Nyezhov]

24 minutes ago, CGW said:

Thats a lot of airports, could you list them all please and rank the toilets on a 1 - 10 scale - thank you ????

Sure Great Toilets, codes off the top of my head: NRT, RDU, ANC, FBX, SEA, LAS, MSP, Seoul, Dubai, Louisville, Toronto, Honolulu, FRA, Palm Beach, Miami, Dallas, Phx

 

Usable, yet not primo: Swampy, Detroit, Moscow, Heathrow, Newark, JFK, Houston, Atlanta, Chicago.

 

Yuck: SFO, Mexico City, Caracas, Medellin