Industry Calls International Tourist Flight Duty-Free Shopping Allowance "A Rain in the Drought"

"Hope it becomes an opportunity for travel demand to recover even slightly"

On the 8th, a plane is flying over the silver grass field in the Sky Garden at Incheon Airport under clear weather. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Yoo Je-hoon] The government’s decision to grant duty-free benefits for international non-landing sightseeing flights has been warmly welcomed by the aviation industry. The aviation sector, which has been facing its worst crisis due to the novel coronavirus disease (COVID-19), is expressing a positive atmosphere, calling the measure "a much-needed relief in a drought."

According to the industry on the 19th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held an emergency economic central countermeasure headquarters meeting and a New Deal related ministers’ meeting at the Government Seoul Office that morning, announcing a one-year temporary allowance for international flights that do not visit other countries (sightseeing flights).

Passengers on these flights, which do not land directly in other countries, will be exempt from quarantine measures and group testing, and will receive duty-free benefits just like regular passengers. The current duty-free allowance includes a basic $600, one bottle of liquor (1ℓ, within $400), 200 cigarettes, and 60ml of perfume.

The aviation industry is clearly pleased with this measure, calling it "a rain in a drought." Previously, Korean carriers such as Korean Air, Asiana Airlines, Jeju Air, Jin Air, and Air Busan had been conducting sightseeing flights on domestic routes due to the continued demand slump caused by COVID-19, but there were clear limitations in terms of profitability and demand. Industry analysts say that if duty-free benefits are granted for international sightseeing flights, it will be possible to secure demand with duty-free shopping in mind and aim for increased profitability.

Some airlines planned to launch international sightseeing flights earlier this month, but the Ministry of Economy and Finance and quarantine authorities maintained a cautious stance, delaying the plans. Currently, six airlines including Korean Air, Asiana Airlines, Jeju Air, Jin Air, T’way Air, and Air Busan are preparing related products. It is reported that some, such as Asiana Airlines, are considering operating international sightseeing flights next month. The industry points to neighboring countries like Japan, where flight time is not extensively consumed due to the nature of non-landing sightseeing flights, as likely destinations.

The industry expects that since in-flight duty-free sales are often outsourced to external companies, direct profits may not be substantial, but positive effects could emerge in terms of stimulating demand. An industry official said, "The revenue generated from allowing international sightseeing flights is not enough to reverse the current situation, but it has provided some breathing room by securing a bit of travel demand."

This content was produced with the assistance of AI translation services.