ACI, DFWC proposes brief relaxations on duty-free products

By Rahul Vaimal, Associate Editor
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Airport Duty Free
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The Airports Council International (ACI) and the Duty-Free World Council (DFWC) have recommended temporary relaxation of duty-free quotas and allowances of travellers on selected duty-free products to improve sales and assist airports in raising revenue through their retail stores. 

While some of the countries already have tax-free shopping facilities, the two organizations have also proposed introducing duty and tax-free shopping to countries that still do not offer duty-free shopping for the customers.

According to the ACI policy brief, duty-free and travel retail plays an important role in the success and growth of airports across the world by contributing up to 44 percent of non-aeronautical airport income to which 30 percent contribution is made by discounts.

The speedy recovery of duty-free and travel retail sales would help airports generate significant revenue and improve financial health of the entire aviation industry.

Airport Duty-Free Shopping has been established in most of the continents, especially in Latin America-Caribbean, Asia-Pacific and the Middle East. More than 45 countries, including Australia, India, Brazil, Russia, Indonesia, Turkey, Thailand, and the UAE  have already introduced the concept of on-arrival duty-free services.

Luis Felipe de Oliveira Director General, ACI World said, “The airport community generates about 60% of the industry jobs. Airports recognize the importance of commercial activities as job generators, such as retail and duty-free, and sources to diversify their revenue streams beyond aeronautical sources, but stimulating commerce at airports goes beyond the industry bottom line in the current crisis”.

In recent months, the Duty-Free World Council has engaged with policy-makers and regulators around the world to bring clairty about the relevance of the duty-free marketing industry in tourism, aviation and maritime business sectors to the broader economies condition of the countries, commented by Sarah Branquinho, President DFWC, on the policy briefing.