A.B. Won Pat International Airport Authority in Guam outlined its proposed new duty free operation with Lotte Guam Duty Free in a statement today.

 

[This statement was released at around the same time that DFS Guam announced today that it was launching a lawsuit against Guam International Airport Authority-Ed].

 

Seemingly unaware of DFS’ lawsuit announcement at the time, GIAA said that the new agreement signed with Lotte earlier this month ‘heralds in a bright and new future for Guam International Airport as the largest retail concession agreement in its history.

 

The GIAA acknowledged that it ‘instantly enhances GIAA’s financial condition by a substantial measure’ and it is now promising this will result in ‘a dramatic improvement of the travel experience for the people of Guam and its visitors’.

 

GIAA Executive Manager Chuck Ada stated, “We are very excited about the revenue potential of our new partnership with Lotte Duty Free and we are equally proud of what this project will bring to Guam.”

 

Ada refers to Lotte’s undertaking to guarantee $154m in revenue for GIAA that it expects to bring with it an additional $23m in direct investment to improve the visitor experience at GIAA over the term of the concession agreement. Under the old retail concession contract GIAA signed a $4.5m annual minimum guarantee agreement with DFS, but Ada says that the existing concession space is now ‘in desperate need of major renovation and updating’.

 

 

LOTTE ADDRESSES ITS INVESTMENT…

Addressing this issue, Won-Jun (Jamie) Lee, CEO of Lotte Guam Duty Free (left) said: “In the first year we will invest $17.6m and the next an additional $5.4m to not only create a completely new retail and entertainment experience at the airport, but also to improve the overall traveller experience.”

 

[Left: Won-Jun (Jamie) Lee, CEO of Lotte Guam Duty Free]

 

The company said that the $23m plan revealed during the joint press conference held by GIAA and Lotte Guam not only addresses a redesign of the retail area, but also the food court and the installation of a modern children’s play area and renovated restrooms. GIAA says these are all ‘integral parts of the retail experience’ and will only enhance retail sales and GIAA revenue.

 

Alex Cook from Lightfoot Space, the company that designed the new facility added: “Our goal was to capture the spirit and culture of Guam as a destination, while providing a modern and entertaining space for travellers to enjoy.”

 

The design is said ‘to capture both the attention and the imagination’ of the traveller by integrating culture, and the environment. One of the new attractions is an aquarium that will display the coral reef and ocean environment. In addition, the design integrates space for local handicrafts and products to be sold as an integral part of the overall retail experience.

 

Lotte Guam’s CEO Lee added: “Our intention is to provide a holistic approach that joins the culture and ambiance of Guam with a modern and sophisticated array of retail products. Our store will provide a reason for visitors to linger longer and that is why we are confident in the revenue we can generate for the GIAA. We are building a gateway to paradise that will be the pride of Guam.”

 

In conclusion the GIAA’s Ada said: “We are starting a new chapter in Guam’s visitor experience and we are happy to have a partner with the breadth and experience of Lotte.”

 

GIAA added that Lotte now plans to be in operation in 60 days, although it looks as though the company might not have been aware that DFS was launching its law suit at the same time it was unveiling details of this new operation and its ‘timetable’.