After signing one of the most talked about airport duty free contracts in recent years, Paul Neeson, Global Buying Director, ARI says the company views the tender win in Abu Dhabi as an opportunity to showcase the best of ARI.

 

“In 2016, ARI will undertake a major programme of redevelopment in our existing estate, which is hugely exciting and brings enormous potential,” Neeson told TRBusiness for the magazine’s Global Industry Survey. “Winning Abu Dhabi is a fantastic opportunity to showcase the absolute best of ARI.”

As previously reported, Aer Rianta International (ARI) has been awarded the 10-year contract to manage the new duty free outlets at Muscat International Airport (above) by the Oman Airports Management Company (OAMC), according to an Oman News Agency statement published in the Oman Tribune.

 

“In general I believe that the industry will see moderate growth, typically 3-4% versus 2015. Given ARI programme of investment and recent wins we expect to trade well in excess of that.”

 

‘A mixed bag’ in 2015

Speaking about the company’s performance in 2015, he admitted that ARI was dealt ‘a slightly mixed bag’, driven by regional fluctuations.

 

“European and APAC business was generally strong, whereas Middle East had significant challenges in some countries, which were largely currency driven.”

 

This year, Neeson believes that the Eurozone should perform strongly again, given relative weakness of currency where there are large proportions of UK/non-EU passengers, whilst any easing in the impact of the dollar ‘should see the Middle East bounce back strongly’. He concedes that Asia may continue to be challenging given volatility in local markets.

 

Neeson addresses what he believes to be the biggest threats to the industry in 2016: “The continued challenge to tobacco continues to eat away at the TR industry, whilst labelling issues, if implemented will only further ensure a lack of genuine difference between global sites, as smaller niche brands struggle to find a place.

 

Impact of global terrorism…

“The biggest issue remains the knock-on impact of global terrorism and the increasingly random nature of terrorist attacks.”

 

As such, Neeson believes that the industry should place greater focus on airports getting passengers safely and efficiently through security ‘in a pleasant environment that will encourage them to shop once through’.

 

He also calls for, “greater cooperation with airports about ensuring that retail is a core part of the overall journey in an area that makes sense both to passengers and the airport. I also hope to see greater experimentation with new concepts and brands from travel retailers.”