SOUTH KOREA. Outbound travel by South Koreans is booming, with some 4,299,194 passengers heading abroad during the first four months of 2007, a +19.1% increase, according to Korean Tourism Organization (KTO) figures.
In the month of April growth slowed slightly to +15.7% (probably due to changed holiday phasing compared with 2006) to 989,018. The figures underline the remarkable buoyancy of the Korean outbound travel market, especially in the off-season.
The prime beneficiaries of the boom have been China, Japan and Southeast Asia, which all benefit from their proximity and a growing tendency among Koreans to take short breaks.
“The number of overseas travellers hasn’t fallen even in the off-season,” an official with Hana Tour travel agency told local media Chosun Ilbo this week. “These days it’s commonplace to travel off-season.”
Growth in the inbound market has been much more modest, however. The first four months saw a muted +1.2% increase year-on-year to 1,967,623 while April registered a decline of -1.5% to 531,517.
The key inbound visitor groups for the country’s travel retail industry are the Japanese and Chinese. The first four months saw 732,843 Japanese arrivals, a decline of -0.1% and a market share of 37.2%. More positively, Chinese numbers grew sharply by +9.3% to 290,953 (a 14.8% share). Japan was off by -2.8% in April while China eased by -3.2%.
The numbers will be of major interest to the many players currently circling the duty free and food & beverage tenders at Incheon International Airport, which close on 14 June and 12 June, respectively.
The following retail contracts are on offer:
Fragrances & cosmetics: Two concessions covering a) the existing Passenger Terminal West as well as the new Concourse due to open in August 2008 and b) Passenger Terminal East. The two contracts will span 2,297sq m (seven outlets) and 1,076sq m (three outlets) respectively.
Liquor & tobacco: One concession covering 1,923.8sq m of space (12 outlets) in the Main Terminal Building and Concourse A.
Fashion and all other items (except those covered in other concessions): Two concessions – One covering 2,281.4sq m in Passenger Terminal East (12 outlets) and space of 4,638sq m (20 outlets) across the Main Terminal Building and Concourse A.
Each runs from 1 March 2008 until 28 February 2013.
The following three food & beverage contracts are on offer:
One covers 2,835sq m across 17 outlets in the Airside West area. Another covers another 17 outlets over 2,803.8sq m in the Airside East area. And the third offers 1,855sq m of space landside (21 outlets on the first and third floors). Categories offered include fast food, coffee, snacks, bakeries, a Korean food court and bars.
Each runs from 1 September 2007 until 31 August 2011.
MORE STORIES ON SOUTH KOREAN TRAVEL RETAIL
South Korean agent Brandepot Co honoured as outstanding supplier by Korean Air – 23/05/07
Inflight Brochure Monitor: Korean Air Sky Shop – 10/05/07
Aekyung Group signs MOU to acquire SKM Duty Free Group in downtown Seoul – 19/04/07
Incheon International Airport Corp issues duty free and food & beverage tenders – 18/04/07
