ASUTIL


LatAm duty free and travel retail sales fall an average -25% in 2018


Political and economic instability in countries such as Brazil and Argentina hindered DF&TR businesses across the Americas in 2018, but the outlook appears more positive this year, according to ASUTIL Secretary General José Luis Donagaray. Andrew Pentol reports.


L


ast year, DF&TR business in the Americas fell by 25% on average on the back of currency


devaluations and other external influences and challenges. In Brazil, for example, where the


first land border duty free stores are scheduled to open at the end of the month (see p51), political uncertainty during the presidential election campaign culminating in Jair Bolsonaro taking office seemingly had a negative impact on the value of the Brazilian real. Performance in Brazil tends to


shape fortunes across the region, so perhaps this contributed to the year-on-year sales decline in the ASUTIL area. Over in Argentina, currency


devaluation was not due to politics, but economic issues, namely sky- high inflation and interest rates. DF&TR business in the country fell by 25% between July and September, indicates ASUTIL Secretary General José Luis Donagaray during the duty free association’s first webinar in September. The Argentinian economy is


expected to begin its recovery this year. But political uncertainty ahead of October’s elections will continue to cloud the outlook. Speaking during a more recent


webinar, Donagaray says: “Things were positive in the first four months, but from May to November, Brazil and Argentina suffered a lot. From November onwards, Brazil started to recover, while things remained complicated in Argentina.” He adds: “We have received


information that the US Federal Reserve will not increase interest rates anytime soon, which has created a sense of stability from a


MARCH 2019


currency perspective.” In 2019, Donagaray is expecting


a more stable year. “We will have some ‘noise’ in Argentina due to the elections and there will also be elections in Uruguay, but I believe things will be much calmer. “We need further recovery and


exchange rates to stabilise. This is what affects business the most.”


Powerful speaker lineup At the second Duty Free & Travel Retail Summit of the Americas (24-27 March) delegates can look forward to a new venue (Hyatt Regency Orlando) and a powerful speaker lineup on Monday, Tuesday and Wednesday mornings (08:30am- 10:00am). Each session will last an hour


and a half as opposed to two hours last year and comprise speakers representing suppliers, retailers, airlines, associations and research companies. Motta Internacional CEO and


IAADFS Chairman Erasmo Orillac and Dufry Brasil and Bolivia General Manager and ASUTIL President Gustavo Fagundes will open the Executive Conference Sessions on the first day. Donagaray says: “This great


lineup of suppliers, coupled with a compelling programme for the Executive Conference Sessions and multiple networking events, provides a strong platform from which suppliers and buyers can get the most out of their participation in the 2019 Summit of the Americas.” Offering an update on pre-


registration figures, Donagaray indicates numbers were a ‘little down’ on last year at the time of writing, but is confident of a strong turnout.


“We have more buyers from


ASUTIL and IAADFS registered for the networking time which is a good thing,” he says. ASUTIL has also invited delegates


from potential Brazilian border operators to the summit. “The National Union of State


Deputies are also very interested in learning more about DF&TR across the region and are expected to send representatives,” says Donagaray. He concludes: “When we open


the summit on Monday 25 March, I hope we will have the same number of delegates as last year or maybe even more. This is despite the tough economic and political situations in Argentina and Brazil respectively.” «


“We will have some ‘noise’ in Argentina due to the elections and there will also be elections in Uruguay, but I believe things will be much calmer.”


José Luis Donagaray, Secretary General, ASUTIL


TRBUSINESS 25


Above: Currency devaluation in Argentina last year was not due to politics but sky-high inflation and interest rates.


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