Macau International irport Co. Ltd ( CM ) Request for Proposal Duty Free Services Subconcession Pre-bid Meeting Enquiries Pertaining to Section B. 5 on Page 11 of the Request For Proposal ( RFP ) of the captioned subject, a Pre-Bid Meeting and Site Visit ; CM hosted the site visit session from 10:00am till 11:30am at the Macau International irport and follow by the pre-bid meeting from 11.30am 12.00noon on 30 pril 2014 at Meeting Room & B, 5 th Floor, CM Office Building providing a direct interaction for potential Bidders to raise up questions related to this RFP for the Duty Free Services Subconcession at MI. Due to the fervent feedback, all questions are closed before 5:00pm (Macau local time) on 30 pril 2014. Please provide the passenger projection for the next 5 years. Year Forecasted Passenger Volume 2014 5,100,000 2015 5,355,000 2016 5,600,000 2017 5,900,000 2018 6,200,000 2019 6,510,000 Is there any development plan for airlines or routing? We are developing the routes to India and Indonesia, and focusing to develop more South East sia routes and long haul destination to Macau. Is there any recovery plan for the transfer passenger? MI is targeting as a destination airport, the transfer passenger is less than 10% of the total passenger volume. Please provide the passenger traffic forecast by nationality. We could not provide the passenger traffic forecast by nationality. There is significant gap in the number of passengers and the composition of nationalities of the passenger between the RFP information and the similar information from Macau Government Tourism Office s website. What makes the difference between those two data? The MI-Passengers by Country 2013 chart provided under Section point 2 of the RFP is categorized by country/region of departure or of destination, not by nationalities. re the transit and transfer passengers able to access to the shops at the relevant premises specified in the RFP? Yes. Please provide the monthly passenger traffic for the past two years (or more) by arrival, departure and in transit/transfer, categorized by nationality. We could not provide the passenger traffic figures categorized by nationality. Below are the passenger numbers by origin/destination for year 2012 and 2013: Page 1 of 8
2013 Total Traffic by Origin-Destination Origin/Destination rrivals Departures Transit/Transfer Total The People's Republic of China 645,077 824,062 209,664 1,678,803 Taiwan, China 631,916 622,523 118,597 1,373,036 Thailand 433,965 414,483 39,092 887,540 Malaysia 147,423 141,218 1,094 289,735 Republic of Korea 109,868 108,307 4,782 222,957 Philippines 94,178 96,396 336 190,910 Singapore 90,504 89,902 385 180,791 Vietnam 42,874 41,558 289 84,721 Japan 39,257 39,144 3,802 82,203 Other Countries 1,654 624 14 2,292 Intermediated Stops 12,224 13,477 177 25,878 Non-Commercial 3,798 3,937 669 8,404 Total 2,252,738 2,395,631 378,901 5,027,270 2012 Total Traffic by Origin-Destination Origin/Destination rrivals Departures Transit/Transfer Total The People's Republic of China 553,730 715,317 171,834 1,440,881 Taiwan, China 638,546 648,301 80,313 1,367,160 Thailand 332,554 320,750 23,661 676,965 Malaysia 146,641 144,021 511 291,173 Republic of Korea 100,923 105,613 152 206,688 Philippines 91,714 94,191 4,080 189,985 Singapore 91,527 90,522 2,943 184,992 Vietnam 40,449 40,010 1,043 81,502 Japan 20,427 20,139 44 40,610 Other Countries 1,576 492 2,517 4,585 Non-Commercial 3,145 3,255 124 6,524 Total 2,021,232 2,182,611 287,222 4,491,065 Source: Macau International irport Traffic Statistics prepared by D-dministration of irports, Ltd. Please provide the historical sales by category for the past 3 years (2011-2013). We could only provide the total retail sales turnover for 2013 which was approximately MOP1.3 billion. Is there any penetration of nationalities for the duty free consumption? Is there any nationality preference for the boarding gate arrangement? There is no nationality preference for the arrangement of boarding gate. Generally speaking, it is arranged according to the location of the parking slot and the nearest loading gate position available, and/or by request from the airlines. Is it required to open the shops if there is only one 3a.m. departure flight during the midnight? We try to provide good customer experience to every passenger as equal as possible at any time. Currently, the last departing flight is at 02:05 daily to Bangkok and the first flight is at 07:30 to Beijing. lso, referring to Section D point 2 of the RFP, bidder could seek prior approval from CM for any change in the hours of operation. Page 2 of 8
When the selected bidder first begin its operation term in any part of the leased space given that the current operator s term finished on just a day before, how could the selected bidder prepare its operation by overnight? Is there any designated area for temporary operation during the transition period? Referring to Section E point 7a. of the RFP, bidder should provide a plan regarding the takeover accessibility with the revamp renovation program in phases. Bidder is expected to takeover the premises upon the previous Subconcessionaire s exit from the premises and to start operation by the forthcoming flight. re there any minimum staffing requirements on the number of management and non-management employees? It is at the discretion of the operator on their staffing policy. MI is expecting the operator to provide good customer service and experience to the passengers. What is the operating hour of the current operator? It is operating 365-day a year and opens at least 1 hour prior to the first departing flight and closes after the actual departure of the last departing flight and is subjected to CM s approval on any change in the operation. Referring to nnex II of the RFP, what is the environmental protection programs? Please refer to this website for further details: http://www.macau-airport.com/en/about-us/about-mia/green-airport) Please provide the dwell time analysis? Time in advance arriving at the airport: 2013 4 Less than 30mins 3.4% 30-45mins 6.4% 46-60mins 16.0% 61mins - 1hr 15mins 19.3% 1hr 16mins - 1hr 30mins 8.4% 1hr 31mins - 2hr 24.9% More than 2hrs 20.7% Refused to answer 0.8% No. of passengers surveyed 357 What types of format will be provided for the floor plan? Floor plan will be provided in utocd and PDF format and it can be downloaded from our website. Regarding the existing structure and the design of shops and kiosks, are those shops allowed to restructure or piecing together as a whole? Proposals are welcome. However, CM will evaluate the proposed content, and the sub-concessionaire must obtain the approval from the respective Macau SR Government authorities and other relevant entities for the related restructuring project. Page 3 of 8
Please clarify the handover condition of the premises; will it be a bare-shell condition? Please refer to Section C. 5 Utilities and General Maintenance of Facilities on page 19, and Section D. 1 Subconcession Space on page 23. The subconcession areas will be handed over to the selected Bidder in S-IS condition. What are the further development plans for Terminal Building within 5 years towards this tender? ccording to the development plan, in the coming year, passenger terminal building north extension will be executed. fter the extension, the design airport passenger terminal capacity will increase from 6 million to 7.5 million per annum. It is expected that the extension could be completed after 2015. Please clarify if any spacing will be reserved for retail area due to the future development plan? Retail spacing will be reserved in the new north extension project. Please clarify if the current arrival airside duty free kiosk mentioned in the RFP will still exist in the future subconcession? No, it will not exist and will be demolished after the current subconcession expires. re there any storage spaces that can be used separately with the lease contract at MI? ccording to Section D. 1 Subconcession Space on page 23 of the RFP, you may consider to have your storage and/or back of house inside the subconcession area. Or you may consider to have storage spaces outside of the Passenger Terminal Building if available. Could the passenger number of the new expanded terminal be excluded from counting for the minimum guarantee per passenger? The future extension of the passenger terminal being planned is not isolated from the current terminal. Passengers will still flow through the areas that are served by Option and Option B subconcessionaires. How can MI assure that bringing in two different duty free operators will give passengers better retail experience, in terms of varieties and pricing? Will it be better if each operator manages or is responsible for separated categories? re the sales per passenger likely to increase with the presence of two different duty free operators? CM s intention is to provide more varieties and selections of brands and products to passengers at reasonable prices. We believe that fair competition between operators can enhance the level of customer services and better retail experiences. Competition can also motivate operators to bring in exclusive brandings which will give passengers more product choices. Moreover, the sales turnover of 1.3 billion patacas, which is approximately USD 160 million, in the calendar year of 2013 indicates that the passengers spending power is strong enough for bringing in a second operator. The sales per passenger are likely to increase if passengers are enjoying better retail experience and have more products selections and branding to choose from. Will a draft subconcession agreement for both Option and Option B be provided for reference purposes? template for both Option and Option B will only be provided to selected operators at a later stage. Page 4 of 8
re the awarded bidders of Option and Option B allowed to sell all categories including Liquor &Tobacco, Cosmetic and other General Merchandise? One of the requirements listed in the RFP is for the stores to be divided 40% for Liquor & Tobacco and Beauty and 60% for the other categories. Does this number have to be an exact one or just an approximation? Why does MI decide to allocate the categories in the captioned percentage? Both operators are allowed to sell all categories. The captioned percentage is an approximation in the premises, and we expect operators to bring in new categories of retail products, for example high technologies and educational products, which were not focused on in the past. Our main aim is to give passengers more varieties to choose from and it is at the discretion of the operators to select their strength and tactics in the marketing and promotion scheme with their partners, in line with page 10 of the RFP for the percentage of the area. Will the sales data for the past 5 years (2009 2013) be provided by year, by nationality and merchandise categories? We can only provide the information that for the calendar year in 2013, MI has a total duty free sales turnover of approximately 1.3 billion patacas. Can you please clarify what does the approximate 1.3 billion patacas include? For the categories of Liquor & Tobacco; Perfume & Cosmetic; General Merchandising; Packaged Confectionery; Souvenirs; Books; Jewelry & Watches; Branded Fashioned and Electronics Products. s per RFP, MI s duty-free/retail spending rates per passenger are substantially higher than the spending rates at other airports in the sia-pacific region, Europe, and the mericans. What are the duty-free/retail spending rates per passenger at MI? Please provide us with the supporting data on those figures. ll our duty free sales are mainly generated from the departure airside. The number of departure and transfer passengers in 2013 is 2,774,532 in total. Historical data shows that the number of transit passengers is quite volatile due to different barriers. Some international airports exclude the number of transit passengers when calculating the minimum guarantee per passenger, will MI consider such approach? The way the RFP structure today is that the minimum guarantee calculated is based on all passengers including the arrival, departure, and in transfer/transit passengers. For details, please refer to the Minimum nnual Guarantee on page 17 of the RFP. Is the bidder required to provide tender deposit or performance deposit for either option? The bidder is not required to provide tender deposit for either option. However, once the winning bidder has been awarded for the operation of either option, a bank guarantee will be required in an amount to be determined by CM, taking into consideration 3 months of CM s revenue and 3 months of the potential default risk. Since tender deposit is not required, how could CM safeguard against a company submitting a very high bid and forfeit or do not go through with the signing of the Subconcession Contract? In such case, will CM base on the point score and select the 2nd runner up as replacement? In this situation, CM reserves the right to annul the initially selected proposal and we would report to and seek orientation from the Macau SR government for further action. Page 5 of 8
Is the bidder required to propose a different commission rate of each category or just one percentage on that? Please refer to the requirements as illustrated on the nnex III of the RFP. How is the credit card fee and usage ratio at the current duty free shops and the nationalities? It is at the discretion of the current Subconcessionaire with the arrangement of their selected local bank service provider. What is the current duty free operator s list of brand? Do they have any specific preferences on the brand line-up? Is it possible to provide map of the current retail area by category or by brand name in detail? Please refer to the website of the current Subconcessionaire (http://www.aims.com.mo/kp/en/default.php) for details. However, CM is unable to provide the map of the current retail area by category or by brand name because the Subconcessionaire has its own marketing and promotion plan and strategy approaches with their partner. What is the rent-free fit-out period for each option? From the point of view of CM, we are willing to negotiate this matter at a reasonable level and that is why we are open to each bidder for their proposal according to their revamp schedule and plan. Please further elaborate according to Section E. 7a. Takeover accessibility with the revamp renovation program in phases on page 26 of the RFP. What does the Condominium Fee consist of? In our normal practice, the Condominium Fee usually consists of water, general electricity, drainage, central air conditioning system and common areas cleaning. Must the operator rent or purchase the MI POS system and what are the related charges per month per POS? The Subconcessionaire shall rent or purchase MI point of sales ( POS ) software system, which will automatically input all sales transactions effected into the IT computer system for CM monitoring and review. The Subconcessionaire is allowed to use their own POS, but in this case, the Subconcessionaire will be responsible for its integration with CM s POS system and also for all connection fees and costs. Bidders are concerning about the submission of a complete audited financial statement for the current fiscal YTD, and the most recent three complete fiscal years, with footnotes. Should the submission be translation (with notarization) of auditor opinion, balance sheet, income statement and cash flow statement? Should bidders skip the footnotes as the translation will be tedious and lengthy? The footnotes are to be included. In such particular case, Chinese and English languages are acceptable. Page 6 of 8
s for opinion of legal counsel, what is the range of current operating shops? Does it only mean that the shops situated on parent company or subsidiaries? What kind of shops do we have to count for current operating shops? Duty free shops only? Or all kinds of retail shops that we operate? The operating shop(s) mentioned in Section E. 11 of the RFP document (Page 27 of 40) refer(s) to duty free shops and other kinds of retail shops of the Bidder company itself but not its parent company or its subsidiaries. Is it possible for us to build the subsidiary company in Macau and receive the license/permissions after winning the subconcession? Please refer to Section B. 4 Minimum ualifications on page 11. It is a minimum qualification for a Bidder to be a company duly incorporated and existing under the laws of Macau or any other jurisdiction and, in either case, the Bidder itself must be duly registered with both the Macau Commercial and Moveable Properties Registries and the Macau Finance Department. The Bidder itself shall have fulfilled this requirement when submitting the proposal, but not subsequently. If the Bidder s proposal is selected by CM, the Bidder itself, but not its subsidiary or otherwise associated company, will enter into the Subconcession Contract awarded by CM. Moreover, applications for relevant licenses and/or permits should be addressed to the respective Macau SR Government entities. Please refer to website (www.gov.mo) for more details. It is mentioned that the Bidder must provide its business information including a Macau Registration Certificate and rticles of ssociation. If the bidder s company is incorporated outside Macau SR, can we provide the same type of documentation registered with the registered authority (with translation and notarization)? ccording to Page 11 of 40 of the RFP document, it is a minimum qualification for a Bidder to be a company duly incorporated and existing under the laws of Macau or any other jurisdiction and, in either case, the Bidder itself must be duly registered with both the Macau Commercial and Moveable Properties Registries and the Macau Finance Department. The Bidder shall have fulfilled this requirement when submitting the proposal, but not subsequently. Therefore, the Bidder should provide sufficient information in their Proposal to demonstrate the fulfilment of the Minimum ualifications stated above as required on Page 11 of 40, especially the Macau Commercial Registration Certificate as also required on Page 27 of 40. Nevertheless, the Bidder may additionally provide the same type of documentation issued by or registered with the authorities of Mainland China or other jurisdictions if such documentation is relevant to the RFP process. Page 7 of 8
Regarding the minimum qualifications for the shareholder holding at least 25% voting stock of the bidder, should the bidder need to confirm if such requirement need to be fulfilled when submitting the proposal by stating the company structure or could the bidder fulfilled before signing the Subconcession Contract? The referred requirement should be fulfilled when submitting the proposal. Other than stating the company structure, Bidders are also reminded to provide other sufficient information in the proposal to demonstrate the fulfillment of the relevant Minimum ualifications. s the Bidder is required to provide Notary Signature, does CM accept notary outside Macau SR? (the uestion person is from China) Yes. Page 8 of 8