The Japanese Transport Ministry is said to be considering the creation of duty free arrivals shops at Japanese airports and ‘US-style’ pre-clearance immigration points at foreign airports to alleviate congestion at the country’s larger Japanese airports.

 

According to the normally reliable Japan Times newspaper, the unconfirmed report suggests that Japan’s Transport Ministry ‘will recommend’ the arrivals shop change in the forthcoming fiscal 2017 tax system reform requests – although this doesn’t mean that they will be adopted. Meanwhile, the pre-clearance initiative is expected to be passed separately without any problem.

 

The airport groups said to be supporting this latest request to create legislation to facilitate airport duty free shopping are said to include the operators of Sendai International Airport and Kansai International Airport in Osaka.

 

STRONG SUPPORT FOR SENDAI AIRPORT INITIATIVES…

Sendai International Airport became a privately-owned company under a 65-year lease last July and has been working hard to attract more international carriers/traffic. It is mainly owned today by the Maeda Corporation, Tokyu Corp and the Toyota Tsusho Corp.

 

 

One of the new owners’ stated priorities includes a strong drive to try to promote the region (and the airport) to international visitors. This is an effort which has been commended widely by economic commentators and the Japanese Government, following the continuing ongoing reconstruction efforts after March 2011 earthquake and tsunami devastated the Tohoku north-eastern area of Japan.

 

As part of their ongoing efforts to attract more visitors, the Sendai and Osaka airport companies are now hoping to any new revenues generated from duty free arrivals shopping to subsidise landing fees and subsequently boost traffic to the areas – particularly utilising growing low-cost airline sector.

 

A MORE RELAXED ATTITUDE TODAY?

According to this latest newspaper report, Japan’s Transport Ministry may also be more inclined to consider adopting the arrivals shop request this time around, as ‘duty free shops’ have already been allowed to open in downtown department stores.

 

However, it remains to be seen what opposition might be raised to any such proposal, since similar requests have been flatly turned down by the Japanese Government in the past.

 

 

For example, this is not the first time that duty free arrivals shops have been considered in Japan. It was only four years ago that the Japanese Government – through its Finance Ministry – looked at the introduction of duty free arrival and downtown pre-order departure shopping (now approved).

 

The government produced a study at that time and many operators were disappointed that the arrivals shop proposal was not subsequently adopted.

 

IF IT HAPPENS, WILL OTHER OPERATORS APPROVE?

Of course, one of the fears held by international duty free operators and airports overseas is that duty free arrivals shops in Japan could pose a serious threat to their businesses. Especially if Japanese travellers opt not to carry duty free purchases while travelling abroad and buy them on arrival at Japanese airports instead.

 

This latest arrivals shop proposal also comes at the same time that the Japanese Transport Ministry is also said to be looking at establishing ‘US-style’ pre-clearance immigration points at foreign airports to alleviate congestion at larger Japanese airports.

 

 

MORE NEW PASSENGER INTIATIVES…

The Ministry is understood to be considering establishing these pre-clearance desks at both South Korean and Taiwanese airports next year to complete the screening process – with Japanese customs and immigration officers located at these airports to handle all passport and luggage processing.

 

These processes – if approved – would also lend themselves to duty free arrivals shopping, although quite how South Korean and Taiwanese airport companies (and their concessionaires) might react to the competition is quite another question.

 

This further recommendation comes at the same time that Japanese airports are experiencing strong international arrivals. These were up by 19.7% to a near record 2.3m alone at all Japanese airports in July.

 

OTHER RELATED LINKS BELOW:

See link to the aforementioned story by Doug Newhouse in September 2012: http://www.trbusiness.com/regional-news/asia-pacific/japan-formally-considers-arrivals-shops/57769

 

For the original Japan Times link to its story published yesterday, click here: http://www.japantimes.co.jp/news/2016/08/28/national/japan-airports-may-able-add-duty-free-shops-arriving-passengers/#.V8PB446XlGy