Thai retail groups petition PM for multiple duty-free concessions

[rooster59]

Thai retail groups petition PM for multiple duty-free concessions

 

FILE PHOTO: The headquarters of King Power Group, the nation's largest duty free retailer, is seen in Bangkok, Thailand April 28, 2016. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Retail groups in Thailand on Friday petitioned Prime Minister Prayuth Chan-ocha for the upcoming duty-free auction at the country's key airport to be held as multiple concessions, instead of a master concession.

 

State-owned Airports of Thailand Pcl (AOT) <AOT.BK>, operator of the key Suvarnabhumi airport and low-cost Don Muang airport, should hold multiple concessions by categories to maximize benefits, the Thai Duty Free Shop Trade Association and the Thai Retailers Association said.

 

"A master concession ... is monopolistic system which does not bring fair competition," the groups said.

 

AOT has previously said it was considering four types of concessions, including master and multiple concessions.

 

The auctions were supposed to be held last month, but they have been delayed. It is not clear when they will be held next.

 

The lucrative duty-free concession at Suvarnabhumi is currently held by unlisted King Power, whose chairman died last year in a helicopter crash.

 

Thailand's tourism boom, which saw 34.4 million arrivals between January and November last year, mostly go through airports with King Power stores. But public debate has increased over the single duty-free operator structure.

 

King Power's single licence is set to expire in 2020, with rivals including Central Group, the Mall Group and South Korea's Hotel Shilla <008770.KS> interested in bidding, analysts say.

 

The retail groups also proposed that public pick-up counters at the airport for goods purchased in downtown duty-free shops should be managed by AOT. The counters are currently operated by King Power under its concession.

 

REUTERS: 2019-01-19

[neeray]

8 minutes ago, rooster59 said:

"A master concession ... is monopolistic system which does not bring fair competition," the groups said.

 

Such an arrangement is just a bit too cozy ! Too much chance of a kickback.

[DPKANKAN]

22 hours ago, neeray said:

Such an arrangement is just a bit too cozy ! Too much chance of a kickback.

The 'joke' is that their so called duty free prices are often more expensive than the high street!! All those envelopes to fill!!!

[ChipButty]

The auctions were supposed to be held last month, but they have been delayed.

Same as it ever was

[Ulic]

If they really wanted to rake in the money they should sell luxury vehicles along with the rest of the luxury goods. 

[observer90210]

My local supermarket in France sells my favorite Gentleman Jack whiskey for 23 € ...  but all Duty Free scammers tag it at US$ 40,- approx and in most major hubs worldwide !! Absolutely no point in setting foot in these Duty Free scammer joints should it be in Thailand or abroad  !

Edited January 22, 2019 by observer90210