Lotte Duty Free Group has reported very strong first half South Korean airport and downtown duty free sales of plus-20%.

Speaking exclusively to TRBusiness yesterday, Lotte Duty Free Business Development Team Leader Steve Park pointed solidly at the continued growth in Mainland Chinese visitors as the driving force, following on from the retailer’s record $3.3bn sales turnover in 2013 [+13.8% from $$2.84bn in 2012-Ed].

“Chinese customer numbers are very good. Our sales are up 20% in the first half this year,” said Park. This improvement in revenue comes at a very busy time for the duty free retailer when it is preparing to open its flagship Lotte World Tower duty free store in the capital’s upcoming Kangnam area.

South Korea’s biggest duty free retailer is also expanding duty free shopping attractions for Chinese customers, including its specialist luxury watches area in the flagship Sogong downtown duty free store in Seoul.

CHINESE UP 85% IN 1ST 5 MONTHS
According to the latest figures announced by Korea Tourism Organisation (KTO), Mainland Chinese visitor numbers grew by 85% during the first five months of 2014. Some 517,000 visited South Korea in the period January-May 2014, up from 279,000 during the same period last year.

By contrast, the total number of foreign visitors rose by 34.8% during January-May 2014 to reach 1.24m, compared with 919,000 during the same period in 2013. Apart from Mainland Chinese tourists, other foreign visitor nationalities visiting South Korea in greater numbers this year include travellers from Hong Kong, Taiwan and Southeast Asia.

Mainland visitors accounted for 42% of all foreign visitors to South Korea from January to May this year, according to KTO. Japanese visitors were second, accounting for 16%. However, the number of Japanese visitors during the first five months of this year fell by almost 10% compared with January-May 2013 – almost certainly due to the weakness of the yen.