Thursday, July 24, 2014

Lotte-Guam: "Every Month DFS Can Operate Under Their Old Contract, They Pay Less to GIAA"

Guam News - Guam News

Guam -  Lotte-Guam's Transition Director Gerry Perez issued a statement Friday saying  "we understand that a rapid decision is not always the best decision. We respect that the GIAA board is doing everything they believe necessary to insure that the process has been adhered to.”

 

However Perez accused DFS of creating "the delays in the process from the beginning" and he said "such a strategy works clearly to DFS’ benefit."

“Every month DFS can operate under their old contract, they pay less to GIAA,” said Perez.

GIAA Manager Chuck Ada told PNC News Wednesday that negotiations with Lotte for the concession contract at the airport had been suspended because of the protest. The Board was informed of that decision during their meeting Thursday.

DFS will continue to provide the concession services at the airport on a month to month basis until the procurement protest is resolved.

Perez also took exception to the Tuesday protest letter from DFS which he said impugned "the board and staff of the very organization that helped DFS to become what it is today." 

“While Guam’s visitor industry has experience double digit growth," said Perez, " the Airport has recorded less than a 1% increase in revenues from the current retail concessionaire. These disparate figures probably played a factor in the Airport Authority’s desire for change.”

READ the release from Lotte-Guam Transition Director Gerry Perez:

"We understand the GIAA Board’s situation and decision, this is yet another example of GIAA’s effort to adhere to procurement procedures and insure a transparent and fair process."

Gerry Perez, the Transition Director for Lotte Duty Free Guam went on to say, “We understand that a rapid decision is not always the best decision. We respect that the GIAA board is doing everything they believe necessary to insure that the process has been adhered to.”

He went on to explain that the delays in the process from the beginning were created by DFS to require additional review. The incumbent indicated, even before a decision was rendered that they would protest if it did not go their way. He also explained that such a strategy works clearly to DFS’ benefit.

“Every month DFS can operate under their old contract, they pay less to GIAA.” The savings are significant. As this process continues, GIAA continues to lose tens of thousands in revenue that is needed by GIAA to remain competitive.

Mr. Perez went on to say, “I was particularly disappointed with the release made by DFS’ off-island leadership. The idea that the President of DFS would impugn the board and staff of the very organization that helped DFS to become what it is today was very unlike the company that I knew, an organization that the people of Guam trusted.” Mr. Perez indicated that the Lotte Group, as a $65 billion dollar company, is a large and influential partner in the development of Asia tourism. Its retail business ranks as one of the fastest growing and most successful retail organizations in Asia posting over $25 billion in annual sales.

Its success has been built by providing Asian travelers with the service and products they desire. Mr. Perez went on to say that competition is good for the industry, “While Guam’s visitor industry has experience double digit growth, the Airport has recorded less than a 1% increase in revenues from the current retail concessionaire. These disparate figures probably played a factor in the Airport Authority’s desire for change.”

Mr. Perez concluded by saying that Lotte has done a magnificent job in positioning Guam’s culture at the center of its improvements at the airport. Local entrepreneur and fashion designer Erisa Cristobal commented on Lotte’s commitment to making the Chamorro culture the centerpiece of its presentation at the Airport. “Lotte doesn’t just want a tropical motif to be a part of the periphery, they want to honor our culture and heritage. I’m excited for the opportunity to assist in this endeavor. My company is proud to be a part of the Lotte team.”

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