The duty free and travel retail industry is set to grow, as more and more travellers opt for shopping at retail outlets based at airports, according to the Tax Free World Association (TFWA).
The TFWA is an association of duty free and travel retail companies, and provides a platform between suppliers and organisers.
At the TFWA Asia Pacific & GATE ONE2ONE 2012 event held recently in Singapore, the association reported that around 50 percent of the revenues of most of the world’s international airports are generated from duty free, travel retail and other non-aviation transactions. While Paris Charles de Gaulle airport in France, has reported that such revenues account for around 60 percent of total revenues for the airport.
The duty free and travel retail industry worldwide claims to offer premium products to travellers at international airports, as well as on airlines, ferries, cruise lines, ports, and at duty free stores at numerous locations globally, generating around £30 billion in total sales per year.
In 2011, the Asia Pacific region was more successful than Europe in terms of duty free and travel retail sales, with revenues of £10 billion for the first time in more than 60 years of industry transactions, which represented an increase of 25.5 percent on 2010 revenues.
The association reports that 35 percent of the global duty free and travel retail sales are generated in the Asia Pacific region, with 34 percent in Europe, 23 percent in the Americas, 7 percent in the Middle East and 1 percent in Africa.