01 February 2010, Bulletin # 28

Update on duty-free sales at airports

To all ACI Airport Operators and World Business Partners:

As mentioned in the January issue of the ACI World Report to members, the World Health Organization (WHO) Executive Board considered a draft global strategy to reduce the harmful use of alcohol at its meeting end January. The original strategy proposal covered 10 policies, including the introduction of taxation on alcoholic products sold to international travellers, therefore opening the door to a ban of duty-free sales of alcohol at airports worldwide. The implications of such a ban would have significant impact on airport retail for many of our members and therefore on their non-aeronautical revenues.

We are happy to report, therefore, that the WHO Executive Board has reportedly amended its Draft Strategy to Reduce the Harmful Use of Alcohol, removing the proposed ban on duty-free alcohol sales. This version will be presented at the annual WHO assembly later this year.

ACI supports the WHO mandate providing leadership on global health matters, shaping the health research agenda, setting norms and standards, articulating evidence-based policy options, providing technical support to countries and monitoring and assessing health trends. However, ACI opposed this proposal, published in early December, on the grounds that there is no evidence of a link between duty-free sales and the harmful use of alcohol. Similarly, these sales are restricted to international travellers and restricted in quantity.

Craig Bradbrook, ACI World Director of Facilitation, commented: “The industry was shocked to see the proposal in the draft strategy document as there had been no prior consultation on the issue. The proposal was ill-conceived and lacked any merit whatsoever. ACI is grateful for the support that airports have given us and the efforts of the travel retail associations in mounting a vigorous industry defence. The decision is a victory for common sense.”

While the threat of a ban on duty-free alcohol has receded, a similar ban on duty-free tobacco will still be considered in the negotiations on the Protocol on Illicit Trade in Tobacco, at the WHO Intergovernmental Negotiating Body (INB) meeting in March, 2010. This association of an airport-related sales ban to a WHO policy framework, whose objective is to eliminate illicit sales of tobacco, is equally misguided and unacceptable considering that airports have a secure supply chain with rigorous accounting practices in place that cannot be associated with illicit trade activities.

ACI and the travel retail associations will be working together in a coordinated communications exercise to oppose the ban, as there is absolutely no link between duty free tobacco sales and illicit trade. More information will follow shortly in the next Bulletin to Members.