The Cayman Islands Airports
Authority has requested proposals from companies interested in running the
interior and exterior advertising display concessions at Owen Roberts
The minimum capital investment by
the successful proposal would be CI$150,000. According to the request for
proposals released Monday, 30 August the successful proposer would pay the Cayman
Islands Airports Authority 40 per cent of gross revenue derived from the
advertising concession or a minimum annual guarantee payment of $300,000,
depending on which was greater.
Advertising and community
The authority said within the
document that it was their intent to select a concessionaire that would develop
a display advertising and
“[The concessionaire’s programme
would both create] a welcome message for the islands, including themed
representations of the cultural, educational and economic islands and enhance the
authority’s revenues while providing and enhancing the design integrity of the
terminal building,” said the authority.
Interested parties must submit a
bid guarantee of $10,000, which will be held by the authority until the
contract is executed. Parties must be willing to enter into a five-year agreement
with a possible subsequent five-year renewal option, which would be exercised
by the airports authority based on performance and operational standards.
The authority stated that specific
experience and qualifications are necessary for prospective concessionaires,
and minimum requirements must be met. These included having been engaged in the
management and operation of in-terminal and external advertising concessions at
three venues, two of which must be commercial airports, with advertising programmes
at airports ranging from 500,000 to 2 million in passenger traffic for at least
three years. During 2009, Grand Cayman recorded 937,114 passenger movements.
Combined programmes must have
generated $1 million per year for the three years preceding the proposal
submission and proposers must supply a list of all advertising contracts in
place at airports and other venues.
“Proposers must show evidence of an
established sales organisation with the capability to produce a mix of
advertising sales from regional, national and international advertisers; with a
stronger emphasis on international advertising and promotion… proposers shall
provide information regarding airport terminal projects for which it has
provided professional design services, including any airport references,” read
Advertising media available at the
airport include backlit media, two digital/plasma screens at the General
Aviation terminal and one in the Customs Hall and the primary medium of
back-lit media. Glass cabinets are being phased out, and although the digital
advertising is currently handled by an outside agency on a revenue-sharing
agreement, it now forms part of the RFP. Proposals should also include exterior
mediums which are not currently a feature at the airport.
A points system will be used to
demonstrate how applicants best satisfy several selection criteria. They
include experience, expected gross sales, management and marketing plan,
financial ability and innovation and concepts.
Current advertising contracts,
which were due to expire at the end of the authority’s financial year on 30
June, were renewed for one quarter due to the outsourcing of the advertising
programme. Contracts have been extended for a further quarter and now expire on
31 December. New advertising contracts would be negotiated by the new
concessionaire to commence on 1 January, 2011. A mandatory pre-proposal site
visit and meeting will be held on Tuesday, 14 September at the airport
The airports authority added that
while Gerrard-Smith International Airport at Cayman Brac was not included in
the request for proposals, it would be reviewed at a later date. Until then,
terminal displays will continue to be managed by the authority.