The A.B. Won Pat International Airport Authority, Guam (“GIAA”) released the following joint statement with Lotte Guam Duty Free Guam, LLC.
The GIAA – Lotte retail concession agreement signed earlier this month heralds in a bright and new future for the Guam International Airport. The new concession agreement is the largest retail concession agreement in the history of the Airport and instantly enhances GIAA’s financial condition by a substantial measure. The concession agreement will also result in a dramatic improvement of the travel experience for the people of Guam and its visitors.
GIAA Executive Manager Chuck Ada stated, “We are very excited about the revenue potential of our new partnership with Lotte Duty Free and we are equally proud of what this project will bring to Guam.” The Lotte agreement will guarantee $154 million in revenue for GIAA and it will bring an additional $23 million in direct investment to improve the visitor experience at GIAA over the term of the concession agreement. Under the old retail concession contract GIAA was only guaranteed $4.5 million in annual rent and the existing concession space is in desperate need of major renovation and updating, according to Ada.
Mr. Jamie Lee, the CEO of Lotte Guam Duty Free stated, “In the first year we will invest $17.6 million and the next an additional $5.4 to not only create a completely new retail and entertainment experience at the airport but also to improve the overall traveler experience.” The $23 million plan revealed during a joint press conference held by GIAA and Lotte Guam not only redesigns the retail area but also the food court, installs a modern children’s play area, and renovates the restrooms at the airport – all of which GIAA feels are integral parts of the retail experience and will only enhance retail sales and GIAA revenue.
Mr. Alex Cook from Lightfoot Space, the company that designed the new facility stated, “Our goal was to capture the spirit and culture of Guam as a destination while providing a modern and entertaining space for travelers to enjoy.” The design captures both the attention and the imagination of the traveler by integrating culture, and the environment. One of the new attractions is an aquarium that will display the coral reef and ocean environment so important to the visitor experience. In addition, the design integrates space for local handicrafts and products to be sold as an integral part of the overall retail experience.
Mr. Lee, Lotte Guam’s CEO went on to say, “Our intention is to provide a holistic approach that joins the culture and ambiance of Guam with a modern and sophisticated array of retail products. Our store will provide a reason for visitors to linger longer and that is why we are confident in the revenue we can generate for the GIAA. We are building a gateway to paradise that will be the pride of Guam.”
Lotte Duty Free is one of Asia’s largest retailers with nearly 8,000 outlets throughout the world serving more than 300 million customers. It is part of the $65.5 billion Lotte Group which includes investments in the hospitality, finance, retail and financial industries.
In conclusion Mr. Ada said, “We are starting a new chapter in Guam’s visitor experience and we are happy to have a partner with the breadth and experience of Lotte.” Lotte has initiated the installation of its retail space and plans to be in operation in 60 days.
For more information please contact: Rolenda Faasuamalie 642-4645