The Shilla Duty Free
Jeju “buzzing again” as duty free market is rejuvenated, says The Shilla Duty Free
The South Korean island of Jeju’s all-important tourism market is making a post-pandemic comeback, spelling good news for the duty free sector.
That’s the message from The Shilla Duty Free, which has enjoyed a long-term and highly successful presence on the island. In this contributed article, the world’s fifth-biggest travel retailer examines the Jeju tourism resurgence and the implications for duty free retailing.
In pre-pandemic 2019, downtown Jeju’s duty free shops generated sales of approximately KRW2.4 trillion (US$1,798,871,280), representing a significant share of the global duty free market.
International passenger numbers peaked at 1.35 million in 2016 but experienced a substantial decline due to the THAAD deployment row with China from 2017. However, in 2019, the number rebounded to 1.32 million. Then came the pandemic and in 2020 the COVID crisis halted the influx of tourists.
But following the Chinese government’s decision to permit group tourism to South Korea announced on 10 August, Jeju has seen encouraging signs of recovery. Foreign tourist visits to Jeju have surged, and the total projected passenger volume for 2023 is 670,000 – approximately 55% of the 2019 figure.
The future outlook is even brighter. By 2024, a full recovery is expected to over 1.4 million visitors. In 2025, the total is anticipated to reach 1.45 million, exceeding the previous 2016 peak.
To gain a detailed insight into the current status of Jeju, we will delve into specific data.
On 31 August the first group of Chinese tourists from a cruise ship in six years visited Jeju. They were welcomed with bouquets at The Shilla Duty Free.
Rapid recovery of Jeju Airport’s international flights
Since the Chinese government allowed group tourism to Korea in August, international flights at Jeju Airport have been recovering swiftly.
The monthly average number of flights for the first half of 2023 was 214, but the third quarter averaged 452 – more than doubling the earlier levels. The fourth quarter is projected to have an average of 612 flights, marking a +36% increase from the third quarter, with December expected to recover to about 90% of the 2019 level.
(Above and below) Group tourists shopping at The Shilla Duty Free
Explosive growth in cruise passengers
Like air traffic, cruise travel is also showing a noteworthy upswing. There are plans for 93 cruise ships to dock in Jeju in 2023 and over 360 in 2024.
This is comparable to past figures, such as 285 ships in 2015 and 507 in 2016. Cruise operations were entirely halted after the THAAD deployment in March 2017. After the first post-THAAD, post-pandemic Chinese cruise docked this August, the number of package tourists at The Shilla Duty Free in Jeju soared +150% month-on-month and by a taggering +3,000% year-on-year.
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The Moodie Davitt eZine
Issue 327 | 29 September 2023
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