DFWC Impact Study will be a vital tool for industry
By Doug Newhouse |
The recently completed 102-page Economic Impact Study on duty free in Europe is clearly is one of the most important papers ever produced for the travel retail industry.
Commissioned by the Duty Free World Council and co-authored by former UK Civil Aviation Authority head Harry Bush and ex-UK government executive Daniel Storey, this is the first in a series of major regional reports with Asia to be addressed next.
EUROPEAN BUSINESS VALUED AT €15.4BN
It now values the European business at €15.4bn in terms of sales, supporting 100,000 jobs and generating €6.4bn in terms of GDP.
In addition, it notes that the travel retail business also helps to balance overall airport and maritime revenues, while creating jobs and supporting the movement of individuals throughout the European continent.
The report also quantifies the size and impact of regional duty free and travel retail businesses, according to DFWC President Frank O’Connell.
DIRECT EMPLOYMENT AND GDP QUANTIFIED
Bush said it is significant, since it addresses direct employment and GDP, along with the contribution from retail to the financing of air and sea transport and European connectivity. Storey agreed, adding that it also highlights increasing competition between big and regional airports, competitive change and how airports are improving their services to passengers.
All executives also believe it will help to show that airport retail really should be regarded as an integral part of the business and not just some ‘add-on’.
This is particularly relevant considering these revenues are often the largest after aeronautical charges – and up to 50% in some cases.
One area where both authors admitted they had some difficulty researching and compiling data was in the European Maritime sector, although they still managed to estimate these at around €1.6bn (based on 2013 data).
DETAILED CASE STUDIES
At the same time, they pointed to detailed case studies on several airports and supplier companies, including London Stansted, Helsinki, Rome and Cork airports, plus Butlers Chocolates and the Bottega spa wine company – plus others.
[A full review and detailed report on this new impact study is available in the April magazine edition of TRBusiness, which will be available shortly-Ed].
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