Asia Pacific is the most vibrant region for duty free and travel retail, accounting for 37 per cent of global duty free and travel retail sales.
According to the TFWA Asia Pacific Exhibition & Conference, global duty free and travel retail sales in 2013 reached US$60 billion, of which US$22.3 billion was from Asia Pacific.
In 1995, when the first TFWA Asia Pacific Exhibition & Conference was staged, the region’s share was 30.5 per cent; over the next decade it is forecast to reach 45 per cent.
In terms of growth, downtown duty free stores delivered the greatest year on year sales growth in the region, unlike most other regions where airport stores were the major driver.
In absolute terms, airports remain the dominant channel, accounting for over half of duty free and travel retail sales worldwide. Of the world’s top 10 duty free and travel retail locations six are Asian airports: Seoul Incheon, Singapore Changi, Hong Kong, Bangkok, Shanghai Pudong and Beijing Capital.
Half of the income of airports in the Asia Pacific region is non-aeronautical revenue, of which the lion’s share is generated by retailing. Airports around the world have recognised the vital contribution that such revenue makes to funding airport development, stimulating traffic growth by keeping landing fees down, and thereby creating employment and supporting both travel and tourism.