SEOUL, Oct. 16 (Korea Bizwire) — Hotel Shilla won a tender for operating its duty-free chain in Macau International Airport, following Singapore’s Changi Airport.
The Seoul-based hotel announced on October 14 that it would run the duty-free business in the airport in Macau in cooperation with Hong Kong-based Sky Connection starting on November 7. Both companies formed a consortium called Sky Shilla Duty Free Limited to operate the 1,122-square-meter space, or half of the total business area, for five years.
Hotel Shilla, holding a 40-percent stake in the consortium, will manage the perfume, cosmetics and fashion sections while the Hong Kong duty-free shop company, holding the remaining share, is responsible for operating the liquor, tobacco and local product business. The sales volume is expected to reach $480 million for the period of the five-year contract.
The other half of the business area in the airport is managed by King Power Hong Kong, an existing duty-free shop operator.
An affiliate of Samsung Group, in particular, plans to sell not only overseas luxury brands but also domestic beauty products, considering the fact that more than 60 percent of airport users are Chinese nationals.
“Macau is one of the major duty free markets in the world. It is expected to be a stepping stone to expand our duty free business in the Southeast Asian market. We will also boost our competitiveness to lead the global market,” Cha Jung-ho, vice president of the company, said.
By Veronica Huh (firstname.lastname@example.org)