CHINA (MACAU). The Shilla Duty Free has been awarded the duty free concession in the North Side area at Macau International Airport, after an open tender.
Shilla had previously run the business since 2014 in a joint venture with Hong Kong-based Sky Connection. Sky Connection held a 60% interest and Shilla 40%. This time the Korean company, a subsidiary of Hotel Shilla, bid alone.
The Shilla Duty Free will sell all core categories. The company said that aggregate revenue for the next five years is expected to reach US$600 million.
Ingyu Han, President of Hotel Shilla’s travel retail business stated, “Macau is one of the best-known tourist attractions and one of the leading duty free markets.
“We have been able to further strengthen our duty free retail presence globally by winning the duty free concession at Macau International Airport. We will keep diversifying our overseas business portfolio to bolster our global competitiveness.”
The news comes hot on the heels of last week’s announcement that Hotel Shilla is taking a 44% stake in Miami-based travel retail 3Sixty.
Macau International Airport handles over 8 million passengers annually, with great future growth potential, The Shilla Duty Free The capacity of the passenger terminal at Macau International Airport will rise to 10 million by 2021 after the completion of the South Side expansion project.
“Given that over 80% of the customers of the airport are ethnic Chinese, Hotel Shilla plans to actively promote the global presence of Korea’s small and medium-sized brands by configuring its merchandise portfolios focused not only on global big name brands but also K-beauty products,” the retailer said.
Starting with its beauty concession at Singapore Changi Airport in 2013, Hotel Shilla now operates five foreign duty free businesses – Changi, Hong Kong International Airport (beauty and accessories), Macau, downtown Phuket in Thailand and downtown Tokyo in Japan.
More to follow soon.
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