Airports of Thailand Pcl (AoT) has approved guidelines that will see more retail spaces being opened to interested business owners. Duty-free sales and other commercial activities are expected to kick off soon.
Thailand is home to six huge airports - all operated by AoT, the state-owned firm that joined hands with the government in efforts to provide new players with opportunities should they win the auction.
According to Reuters, Mall Group, South Korea's Hotel Shilla, and Central Group are some of the companies that showed interest in bidding for the openings at Bangkok's International Suvarnabhumi Airport.
At the moment, King Power is the only firm that owns the sole license of retailing duty-free products and engaging in commercial activities in some of Thailand's major airports. However, the Leicester City football club-owned retailer's license will expire next year.
With the approval of the new guidelines, it is expected that more retailers will have a chance to engage in fair competition.
In the guidelines, it was stated that duty-free retail stores that will win at the auction will be allowed to set up restaurants or pick up counters. For duty-free pick up counters, downtown businesses will have the capacity to deliver products or goods to passengers who ordered.
Last week, AoT airport operator said revenue from retailing at the airport saw an increase of 10.3 percent during the last quarter of 2018. The figures account for 4.3 billion baht in earnings as more consumers traveled last year.
Earlier in January, retail groups sent a petition to Thai Prime Minister Prayuth Chan-ocha, letting the administration know about their complaints regarding the current master concession guidelines. The complaint was heard and resulted in the new guidelines that experts believe is a move that supports the Asia-Pacific's drive in enhancing fair competition.
DFNI Online pointed out that the AoT went through potential scenarios of having a wider range of concession models in Thailand airports. The firm decided that multiple concessions could be more beneficial to the country's trade and tourism industries.
Thai Retailers Association and the Thai Duty Free Shop Trade Association joined hands in convincing the government-owned operator to award separate contracts for retailers. AoT has maintained that it will enforce "free competition" to give new contenders a chance to grow their businesses in the country.
AoT said the Thai government is supporting the cause of boosting tourism as the country continues to push for inbound travels from European, Indian, and Chinese tourists.
