Commonwealth Ports Authority Board Chairwoman Kimberlyn King-Hinds, center, talks about the master concession with DFS prior to a roll-call vote on Sept. 29, 2023, in the Ports of Saipan conference room.
THE Commonwealth Ports Authority’s board of directors on Sept. 29, 2023, approved Duty Free Shop’s request for a five-year master concession at the Francisco C. Ada/Saipan International Airport.
DFS had been in a month-to-month concession deal with CPA since 2016 when the CPA board decided to hold off the issuance of a request-for-proposals for a new concession following the expiration of a 40-year agreement between DFS and CPA.
A few months ago, DFS Managing Director Richard Gustafson and Consumer Marketing Manager Keiko Nakayama asked the CPA board to approve a five-year concession deal.
During a meeting on Sept. 29, 2023, in the Ports of Saipan conference room, the CPA board unanimously voted to approve DFS’s request.
CPA Board Chairwoman Kimberlyn King-Hinds recalled that the board earlier decided not to pursue the issuance of an RFP for airport concession due to the dire economic situation that affected many businesses including DFS.
She said the board allowed DFS to continue operating its store at the airport on a month-to-month basis only.
She said earlier this year, DFS told the CPA board that the company was not seeking a new 40-year concession agreement, but just more time to bring in new brands, retain existing ones and allow necessary updates and improvements.
Ahead of the board’s decision on Sept. 29, 2023, CPA Executive Director Christopher Tenorio told Gustafson that he found it reasonable for CPA to extend DFS’ concession.
“I understand that for DFS to retain and attract similar luxury brands, certain areas of the airport must be improved. I also understand that DFS is interested in making those improvements, but it would need a concession term of at least five years to justify new investments in the concession space,” Tenorio said.
