COVID-19: NEWS ROUND-UP TRBusiness launches petition to save tax free sales


TRBusiness is calling on travel retail stakeholders and consumers across the UK to back a campaign to reverse the government’s decision to axe airside tax free sales at UK airports on all goods (aside alcohol and tobacco). A petition lodged and accepted on the


UK Government and Parliament website also urges ministers to retain the VAT Retail Export (VAT RES) scheme after it was announced that tax free shopping for international visitors in UK shops would end in January 2021.


Only British citizens and UK residents


can sign the petition. At 10,000 signatures, the petition will receive a response from the government. At 100,000 signatures, the petition will


be considered for debate in parliament. With the UK plunging into recession


and unemployment figures rising, the petition is aimed at averting a move that could result in thousands of job losses and prolonged despair for retail businesses including those at airports that are already struggling to survive.


A report by specialist consultancy York


Aviation estimates the decision will cost the UK economy £2.1bn in GDP and put at risk nearly 20,000 jobs. A cross-section of voices including


retailers, ministers and trade associations such as ACI World, the UK Travel Retail Forum, Duty Free World Council, TFWA and the Airport Operators Association have lamented the decision announced in a consultation response in September. According to ACI World, tax free


products account for approximately three quarters of retail concession revenues at airports [although this varies depending on the location – Ed]. Should the new policy be enacted, UK


airports ‘will be at a major competitive disadvantage’ compared with other European and international airports, to which sales will transfer, says ACI World. Sign the petition at this address: https:// petition.parliament.uk/petitions/555140


‘Stronger and more resilient Dufry’ in final


restructure stage; 9m revenue plunge While announcing its nine-month results in November, Dufry Group revealed that it plans to launch its joint venture with Alibaba Group by the end of 2020. Turnover dropped by 69% (reported;


-67.8% CER) to CHF 2,073.9 million/$2,265 million for the period. In the third quarter, sales took a steeper


dive of -80.5% (-79.7% CER) to CHF 487m/$532m. In a statement Julián Díaz, CEO of


Dufry Group noted travel retail’s exposure to travel restrictions and the dynamic


macroeconomic situation, which has been imperilled by the impacts of Covid-19 He pointed to an ‘encouraging’ uptake


in travel in July and August followed by a plateauing in September due to quarantine rules in certain countries. Nonetheless, the strength of Dufry’s


balance sheet matched with its cost reduction activities and strong cooperation with partners including landlords, suppliers and other business partners will allow it to ‘comfortably endure’ even a prolonged recovery, according to Díaz.


CLIA sticks with US cruise suspension to year end


Cruise Lines International Association (CLIA) says its members – which represent 95% of ocean-going cruise capacity – will maintain a voluntary suspension of US cruise operations until 31 December. US cruise lines received welcome news


on the 30 October after the US Centers for Disease Control and Prevention (CDC) outlined a new order, effective 1 November, for the gradual resumption of passenger sailings. CLIA, which greeted the announcement


that supersedes the latest CDC ‘No Sail Order’, confirms its members will use the rest of the year to prepare to implement stringent health and safety measures aimed at counteracting the spread of Covid-19. The association had voluntarily


suspended operations from US ports for more than seven months.


NOVEMBER 2020 TRBUSINESS 3


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