21 July 2009

CIAL calls for duty free expressions of interest

Christchurch International Airport Ltd (CIAL) has commenced an expression of interest (EOI) process for the operation of duty free retail shopping within the airport. 

The incumbent operator, DFS Galleria, is contracted until June 2010. 

CIAL is currently preparing for a major refurbishment of the entire international airside departures area, and is undertaking a full retail review as a part of this process. 

Julie-Ann Beattie, CIAL’s Manager Commercial Development, said that the project was timed to ensure that visitors to Christchurch for the 2011 Rugby World Cup will benefit from the enhanced international offering.

“Airport planning looks many years into the future, and we are confident this development takes us in the right direction despite the short term economic downtown currently being experienced.  Due to the high percentage of trans-Tasman travellers using Christchurch Airport, CIAL has been buffered from the full extent of the global downturn, and our forecasts show average growth in international passenger traffic of 3.2% over the coming years.

“It is anticipated that redevelopment of our international areas will be complete by late 2010, providing an enhanced level of service well in advance of the two major events for this city in 2011 – the International Paralympic Games and the Rugby World Cup”, she says.

The redevelopment of Christchurch’s duty free offering will provide 900 sqm of duty free retail space in International Airside Departures, opening in July 2010, and 500sqm in International Airside Arrivals, opening in October 2010.  Additionally, the successful tenderer will operate the existing 100sqm duty free store in International Landside Departures from July 2010.

Christchurch International Airport is predominantly a leisure airport, with a rich and diverse passenger base catering to nearly 6 million passengers each year.  Chief Executive Jim Boult explains that the EOI process will ensure the duty free shopper benefits from the best available operator. 

“Christchurch Airport has a diverse passenger base, providing excellent opportunities for our retailers in both the business and leisure markets.  We are looking for expressions of interest from pre-eminent global operators, able to provide international expertise while ensuring a local flavour and focus”. 

“With the recent introduction of strict security measures governing the carriage of liquids, aerosols and gels in carry-on luggage, the duty free environment is rapidly changing.  The redevelopment of this area will enable the duty free operator to maximise retail opportunities highlighted by these regulations”, he says.

Jim Boult believes the airport’s mix of passengers and services underpins a strength to its offering that is unmatched in the region.

“We expect to see continued growth over the next few years in not only the core domestic travel market but also in services both at the premium end of the international market and at the high growth low fare and “no frills” end where high retail spend can be generated. The combination of low cost carriers stimulating demand across the travel market, the stability of the legacy carriers serving the region, and the global pull of Christchurch as New Zealand’s tourism gateway puts us in an enviable retail position,” Mr Boult said.

Interested parties should visit christchurchairport.co.nz to request the ‘Expression of Interest’ documentation, which is available from 21 July 2009.  Expressions of Interest close on 10 August 2009.  CIAL will then proceed to a next stage that may include a formal “request for proposals” process or negotiations directly with any potential candidates. The successful operator is expected to be announced before the end of the year.

CIAL will be calling for a full range of food & beverage and general retail tenders in 2010.

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To register an expression of interest, please contact CIAL's Manager Commercial Development Julie-Ann Beattie here.