Terminal 2.

South Korea’s duty free and travel retail industry continues to attract more new operators with Incheon Port Authority recently awarding Top Solar Duty Free the sole concession to operate DF&TR outlets in the seaport’s passenger terminal two which is used by ferry boats plying routes between South Korea and China.

The mixed category concession, which will run for four years and eight months, consists of two shops totalling 595sq m combined. The larger unit covers 430sq m while the smaller outlet has a 165sq m retail area. T2 is used by about 200,000 international passengers a year most of whom are Chinese.

Duty free industry SME newcomer Top Solar won the T2 concession against bids from two other local operators: Entas Duty Free, which operates DF&TR shops in Incheon Port’s passenger T1, as well as at Incheon International Airport, plus a downtown DF&TR store in Incheon; and Golden Arrow Duty Free, which runs a downtown DF&TR shop in Kumsan city.

PASSENGER PICK-UP

Passenger traffic is picking up again at Incheon Port this year after the MERS outbreak caused numbers to drop by -9% to about 500,000 in total in 2015.

Incheon Port T1, the busier terminal, handles about 300,000 international passengers annually, also mostly Chinese passengers using ferries plying six routes between South Korea and China.

In spite of the MERS outbreak, duty free sales at Incheon Port are understood to have risen last year due to an increase in per capita spending among Chinese passengers. Liquor, tobacco and cosmetics are the main categories sold at Incheon Port’s duty free shops.

TRBusiness understands that medium- to low-priced brands are most popular with the seaport’s more cost-conscious ferry passengers.