Hanwha Galleria Timeworld is targeting a second year of double-digit sales growth at Jeju International Airport’s duty free shop this year, according to Allen Hong, Duty Free Division Leader at Hanwha Galleria Timeworld – trading as Galleria Duty Free.

 

This will be the second year of duty free trading for the retailer after it won the duty free contract at Jeju Airport in the middle of 2014. Hanwha is one of several ‘newcomers’ to the business, encouraged to take part in the business by the government’s broad policy to spread the business out amongst more players in future.

 

 

Allen Hong says the company’s 410sq m shop in the main departure concourse replaced a temporary store in July 2014 and he says sales levels matched those of the previous incumbent Lotte Duty Free between September and the end of 2014.

 

He added: “From January to February this year we have reached a 40% monthly revenue increase compared with the former operator’s previous sales level. There is a big demand for duty free goods in Jeju and we are the sole operator at Jeju International Airport.”

 

Hong said the lifting of all visa requirements for Mainland Chinese visitors has stimulated a huge increase in numbers to the province, while a new trend is for Chinese nationals to obtain permanent Jeju residence certificates, as they become regular passengers and customers at the airport.

 

STRONG CHINESE BUSINESS

“The Jeju duty free market is exploding due to the rapid increase in Chinese visitors. Also, Chinese can get a permanent residence certificate for making a low investment in Jeju. Many Chinese are buying property there,” says Hong.

 

Further opportunities also beckon, with Hong confirming that Hanwha Galleria Timeworld is looking at a possible bid for one of the two new Seoul downtown duty free retail licenses, where the Korea Customs Service has set a deadline for all offers by 1 June this year.

 

[A comprehensive interview with Hanwha Galleria Timeworld’s Allen Hong will appear in the May edition South Korea section of TRBusiness-Ed].