The Jeju Tourism Organization has begun selling more brands beginning May 30th as it opened the second phase of its new duty-free shop in (중문) Jungmun.
The question remained whether the JTO would be able to make a turn from the past poor turnover. Mike Laidman reports.
The Jeju Tourism Organization, a public enterprise, has jumped into the duty-free business for the first time.

The JTO announced earlier this year it would open its shops in three phases.

[slug] JTO Duty-Free Shop “Pre” Opening at Lotte Hotel Jeju

The first trial opening was in February, with the ‘pre-opening’ period kicking off on May 30th. The final, or ‘grand’ opening is set for October. The JTO says it has added more booths and is now selling popular brands in the cosmetic, fashion, even home appliance areas.

INTERVIEW
Choi Gap-yeol / CEO, Jeju Tourism Organization
The duty-free shop is 75% complete, with the fashion section still under work. There are about 130 brands available for this second-phase period.
<인터뷰 : 최갑열/제주관광공사 사장>
"2단계로 개점을 했습니다. 현재 130여 개 브랜드가 들어왔는데 패션을 제외한 나머지 브랜드는 입점이 돼 75%의 면세점을 갖췄습니다."

The duty-free shop was established to prevent the outflow of money to foreign countries and create marketing opportunities for locally-produced goods.

INTERVIEW
Won Heeryong / Jeju Governor
The province invests in the JTO and profits from its shop return to the island. There are large duty-free shops on the island, but I believe that a local duty-free shop can be competitive if we use our resources and networks effectively.
<인터뷰 : 원희룡/제주특별자치도지사>
"제주도가 투자하고 수익이 제주도로 돌아오기 때문에 제주도민의 도민 자본입니다. 제주가 갖고 있는 자원과 네트워크를 활용하면 충분히 대기업 면세점 시장 속에서 자리 잡을 수 있을 것이라고 생각합니다."

INTERVIEW
Benjamin Vuchot / Region President, Asia North at DFS Group
(English)

The JTO duty-free shop is now selling about 130 brands, still 40 percent below the JTO's goal.

All areas of the duty-free shop will open by the third development phase, set for October, but the JTO is still in talks with some brands on their terms and conditions. It is unclear when these brands will open their stores in the new JTO business.

[slug] Strategies to bring tourists needed

The JTO’s new store is in Seogwipo, which means that it is less likely to record the number of visitors and sales as the big duty-free shops up in Jeju City.
It must therefore come up with strategies to bring in more tourists.

[camera] Ko Moon-su
[REPORTER] Mike Laidman

After a three-month trial opening, the Jeju Tourism Organization is now running alongside the country’s major duty-free shops.

But the question remains whether the JTO will be able to turn things around after its poor showing during this trial opening.

Mike Laidman, KCTV