Incheon arrivals duty-free to add $40m sales, says airport

Dermot Davitt

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Hotly disputed arrivals business could be introduced in South Korea in February

Arrivals duty-free at Seoul Incheon airport will be worth $40m in its first year if it is introduced under a new bill to be debated in February, according to Incheon International Airport Corp (IIAC). As reported in DFNI December 15, out this week, IIAC is vigorously promoting the introduction of arrivals, as is duty-free operator Korea National Tourism Organisation (KNTO).

IIAC commercial manager BumHo Kim told RavenFox.com: ?IIAC is trying to amend a local law so we can have arrivals duty-free. We surveyed 13,000 people locally and 83% wanted to have arrivals. It will mean travellers don't spend foreign currency in a foreign country to buy duty-free goods and it will be a service to passengers at Incheon that other airports such as Hong Kong and Singapore already have.?

If the law is amended, IIAC will hold an open tender for the business, which Kim estimated would be worth $40m in its first year. The airport authority has already assigned two 200sq m (2,150sq ft) spaces for arrivals shopping at Incheon.

But Kim admitted there was opposition from Customs and two national carriers, Korean Air and Asiana Airlines, which could prove an obstacle to the legislation. Korean Air told RavenFox.com that arrivals would have a big impact on its inflight business, which will be worth about $104m in 2004.