Credit crunch could cost duty-free sector dear

Published: 27 October, 2008

Rising fuel costs and falling passenger numbers coud end up costing the duty free sector $1 billion (£648 million).

Rising fuel costs and falling passenger numbers coud end up costing the duty free sector $1 billion (£648 million).

This was the stark warning by Tax Free World Association (TFWA) president Erik Juul-Mortense as he opened this year's TFWA World Exhibition in Cannes.

Juul-Mortense said that the sector needed to boost average sales and penetration values to counter the potential fallout from the credit crunch.

Despite the warning, the mood at the week-long event's opening conference was relatively optimistic, with Juul-Mortense keen to point out that the travel-retail sector had remained bouyant in the past. despite setbacks including the recent restrictions placed on the carry-on of liquids, gels and aerosols onto aeroplanes.

He added that the industry needed to better address environmental and social issues as consumers become more green aware.

This year 107 wine and spirits brands will exhibit at the conference alongside brands in the fragrance, fashion, tobacco and luxury goods industries. The theme for this year's event is 'Challenge the Future'.

Also at the exhibition today, nine countries have signed an agreement to fight the $700 billion trade in counterfeit luxury goods.

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