AMERICAS: BORDERS REPORT


will help a lot.” Another issue concerns a system


provided by Serpro (a firm administering government IT infrastructure) that uses a database to consult on land border duty free transactions and applies a fixed rate accordingly. “That service is very expensive –


when you have a low average ticket, [the service] may represent about 5% of the amount of the ticket, so we need those issues to be sorted and we are talking to the government,” says Donagaray. Elsewhere, DF&TR stakeholders


will certainly be banking on an improvement in the region’s fortunes this year. Last year, stagnant economic


growth underpinned continued uncertainty over the pace of policy reforms and fiscal rebalancing in the likes of Brazil, Argentina and Mexico.


Brazil/Uruguay relations This year, the picture is being clouded more generally by insecure global trading conditions and the impact on tourism due to the coronavirus (Covid-19) outbreak. In a January blog, the International


Monetary Fund projected growth in Latin America and the Caribbean to lift to 1.6% in 2020 and to 2.3% in 2021, supported by an uptick in global growth, commodity prices and monetary support. For Brazil, growth of 2.2% this


year is expected to build on the 1.2% experienced in 2019 following pension reforms, lower interest rates and inflation.


Liquor offer from Dufry at Uruguaiana.


The country’s relationship with neighbour Uruguay, an important duty free player, remains important following common agreements reached during Mercosur meetings last year. “In border duty free in Uruguay,


companies were really struggling last year and still are,” comments Carlos Loaiza Keel, Secretary General of La Cámara de Empresarios de Free Shops del Uruguay. “The economic environment,


currency volatility and consumer decisions are having a huge impact on border duty free stores’ performance,” he tells TRBusiness. “In Uruguay the government has


changed, it is more aligned with Brazil and this could have a new impulse in bilateral relationships, dealing with new situations and regulatory issues. Hopefully it is good news in the Brazilian economy this year and the new climate of


Brazil/Paraguay growth plan for Top Brands


Top Brands International President Danny Yohoros has told TRBusiness that while the company has a ‘project’ to develop its presence on the Brazilian borders, that has been put on hold for the time being. The Panamanian firm boasts an


airport and border shops presence in 14 countries, including Uruguay following the acquisition of Neutral Duty Free last year. In the coming months, attention


will turn to the construction of shops under the Luryx Duty Free branding at


MARCH 2020


Paraguay’s Silvio Pettirosi International Airport in Asunción after Top Brands sealed a 10-year contract earlier this year to run the duty free operations exclusively. Once complete, travellers will enjoy a


1,300sq m walkthrough departures shop and 500sq m arrivals store equipped with all the duty free categories as part of an approximate $5 million investment. “Paraguay will become a hub for South


America,” Yohoros tells TRBusiness. “The airport authority has a very aggressive growth projection.”


Luryx Duty Free border store in Iquique. TRBUSINESS 47


bilateral relationships between both could have a good impact. “The new authorities are still


landing in Uruguay. The future Foreign Minister met with the current Foreign Minister of Brazil and one of the main points was the border policies and way to reach a common regime in the border areas of both countries. “We have spoken with Uruguayan


authorities on this and hope to have good news, but there are still important differences between both regimes.” «


The International Monetary Fund is projecting growth in Latin America and the Caribbean to lift to 1.6% in 2020 and to 2.3% in 2021, supported by an uptick in global growth, commodity prices and monetary support.


TRBusiness


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