Sydney Airport is calling for expressions of interest from duty free retail providers to enter a tender process for a new duty free relationship, commencing in February 2015.

The airport’s current duty free retail contract with Nuance Australia, which expires next year, comprises six duty free outlets at T1 International terminal occupying 7600sqm of retail space, as well as one domestic tax paid travel retail offering at T2 Domestic terminal.

“As a leading airport located in one of the world’s most vibrant cities, our retail partners are an integral component of maintaining Sydney Airport as a world class shopping destination,” Andrew Gardiner, retail GM, Sydney Airport, said.

“We are seeking the best operator to take the duty free offering and passenger experience at Sydney Airport to another level, as well as foster the growth of the airport for the benefit of Sydney, NSW, and Australia.

“Sydney Airport offers passengers a sophisticated mix of the best shops and brands in fashion, accessories, jewellery, souvenirs, food and wine – there are 150 shops in T1 and a further 50 in T2. We see quality of retail space as a key driver of our retail business and we plan to further invest in development of our retail space in T1 to enhance our duty free sales potential.”

In 2013, Sydney Airport experienced its busiest year to date, with 37.9 million passengers passing through its terminals. Sydney Airport also recorded an overall international passenger total of 12.7 million and an international traffic growth rate of 4.1 per cent.

Sydney continues to be a key destination for travellers from around the world, with recent figures showing that China is now the second largest passenger group to visit Sydney in terms of nationality, with Chinese nationals representing 14 per cent of total international visitors.

“Sydney Airport has a strong customer profile, with the Australian outbound market representing 49 per cent. These customers have a high propensity to purchase duty free, both outbound and inbound.

“Combined with continually growing international visitor numbers and retail demand, particularly from China and the Asia-Pacific region, the outlook for duty free spending at Sydney Airport is exceptional. Over the past three years, Chinese passengers at Sydney Airport recorded a strong average annual growth rate of 14 per cent,” Gardiner said.

Responses from interested parties must be submitted by 4pm on February 18, 2014.

A copy of the Expression of Interest document can be obtained by contacting Doug Benham, head of duty free, retail, and special projects, Sydney Airport, on +61 2 9667 9631/+61 478 401 720 or doug.benham@syd.com.au.