Japan Air Terminal Company (JATCO) is expecting a 25% increase in luxury boutique sales at Kansai International Airport this year.

Tomohiro Kawasaki, Vice President, Osaka Office, Japan Airport Terminal Co Ltd says he is hopeful that this can be achieved, although all Japanese operators are hoping for a speedy resolution to the diplomatic problems with China over the Senkaku Islands.

Jatco’s luxury boutiques accounted for around 30% of total duty free sales at Kansai Airport last year and The Business estimates that its luxury boutique revenue at Kansai Airport was around ¥5bn ($63m) in the financial year ending March 31, 2012 (FY2011).

This is based on total duty free sales at Kansai Airport which were slightly below the ¥17bn ($214.3m) combined duty free sales revenue that all airport’s operators recorded in 2011.

The boutiques which Jatco now directly operates under a concession contract agreement include Swarovski, Omega, Tiffany, Coach, Abiste, Samantha Thavasa and Cartier, along with a Rolex boutique which opened in April, two Bvlgari boutiques and a branded mixed watch shop.

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Brands present in the watch boutique include Omega, Seiko, Longines, Gucci, Casio and Franck Mueller, with the average retail price within the mid-range collection typically standing at between ¥70,000 to ¥80,000 ($2,383 and $2,723) per watch.

Since taking over as the direct luxury boutique operator, the number of boutiques operated by Jatco has risen to 12 at Kansai Airport, following the September 13 opening of the airport’s new Bottega Veneta boutique – the first airport outlet the brand has opened in any Japanese airport.

This replaced one of the airport’s two Cartier boutiques, after Cartier reviewed its retail arrangements at Kansai Airport and decided two boutique locations were no longer needed.

“Previously, Jatco managed for KIAC, but now Jatco is the tenant, which means we do direct operation of the boutiques,” explained Kawasaki.

“We have six months direct operating experience and sales are growing very well. From April to August revenue overall is up 25% on average for all brand boutiques year-on-year,” he concluded.