Published : Aug. 1, 2016 - 11:32
[THE INVESTOR] Sales of duty-free stores almost doubled in June on-year rising for the ninth consecutive month, as the number of Chinese tourists increased, latest data showed Aug. 1.
Duty-free sales in June surged 94.1 percent from the same period last year, according to the Korea Customs Service and Statistics Korea.
The increase is attributed the low figure last year following the Middle East respiratory syndrome outbreak from June to August that saw a sharp fall in number of tourists.
Free from the fear and boosted by hallyu that is going strong on the back of TV hit dramas such as “Descendants of the Sun,” the number of foreign tourists surged 107 percent on-year to over 1.55 million last month. Those from China increased 140.7 percent to 758,534.
Chinese customers account for the largest share of sales at duty-free stores -- as much as 70 percent for that of Lotte, the leader in the country’s duty-free industry.
There are concerns that the industry is overdependent on Chinese customers, with suggestions to expand the customer base and target other overseas customers, like for example from South East Asia where there is a high interest in hallyu.
By Hwang You-mee (glamazon@heraldcorp.com)