Shilla lands duty-free space in Macau’s airport

Hotel Shilla won the right to run duty-free shops in Macau International Airport, the company said.

It formed a joint venture called Sky Shilla Duty Free Limited with Hong Kong-based Sky Connection to participate in the bidding. The Korean hospitality and duty-free unit holds 40 of the joint venture’s shares. Sky Connection owns the rest.

In August, the joint venture was tapped as the preferred bidder for duty-free shops and outlets for one of two duty-free zones, beating out rival Lotte Duty Free Shop.

The venture will start operations Nov. 7. Shilla will be responsible for selling cosmetics, clothes and fashion items while the Hong Kong company will handle beverages and tobacco.

Shilla said it will tap into its experience dealing with Chinese customers at local duty-free shops, adding that it will take into account the tastes of Chinese shoppers when choosing brands. The focus will be local cosmetics brands that are popular among the Chinese. Sixty percent of Macau airport’s customers come from China. More than five million passengers use the airport per year.

Duty-free areas measuring 2,252 square meters (24,240 square feet) were formerly operated by King Power Hong Kong, whose contract expires in November. The airport started a tender process in April for a part of the area.

“Macau is one of the top destinations in Asia,” said Cha Jeong-ho, vice president of Hotel Shilla. “Our entry into Macau will help us broaden our overseas business portfolio.”

Shilla also wrested away the perfumes and cosmetics contract for Singapore’s Changi Airport earlier this year. “Following these achievements, Shilla will strive to strengthen our competitiveness and presence in Southeast Asia,” Cha said.

BY PARK EUN-JEE [ejpark@joongang.co.kr]