Tunisia’s Hamila Duty Free has inaugurated a new duty paid store with Oil Libya having sealed a contract to service its non-oil business across the country.

The agreement spans approximately 180 gas stations operating under the ‘Take 5’ branding covering convenience/gifting concepts, small supermarkets, restaurants and cafes.

“This is a new business to expand the know-how and knowledge of our company into the duty paid business to cater for all passengers travelling to and from Tunis,” Hamila Duty Free CEO Tarek Hamila told TRBusiness.

Stores in the ‘Take 5’ stable will attempt to capture the interest of more than one million Algerians visitors passing through the country each summer.

ALGERIA-TUNISIA BORDER SHOP

In a separate development, the YKH Holding Group subsidiary has confirmed ambitious plans to open a new land-border concession next year at Maaloula on the Algeria-Tunisia divide.

Hamila Duty Free will build around 1,200sq m of commercial space including 515sq m allocated to duty free, alongside F&B and three boutique concepts, under a 10-year government contract signed in May this year.

“We’re very excited about it – we have not developed this channel before in Tunis and it will be the first bordershop for the country, opening hopefully in the first or second term of 2018,” revealed Tarek Hamila.

“What we’re trying to do here is start something from scratch, copying an airport kind of experience on the border. We’ve copied the same layout, but on a smaller scale, and have tried to imitate the experience we have at the airports.

“It will be very modern, catering for passengers who will be interested not only in our prices, but receiving quality services.”

The store is designed to capture more than 1.5m – predominantly Tunisian national and Algerian – travellers crossing the border during the summer months, who according to Hamila Duty Free spend around three hours on the border.

RETURN TO GROWTH

Plans to develop the new border market will be boosted by healthy growth across Hamila Duty Free’s business year-to-date, with retail sales trading approximately level with passenger numbers at approximately +20%.

Results this year have confirmed the growth revival, says Tarek Hamila and follows what he explains has been a ‘bumpy ride’ for the retailer owing to the impact of terrorism and the transition to a new political regime following the 2011 revolution.

“In 2017 we’ve seen a lot of countries lift their travel bans to our county and much more safety for nationals flying in – confidence is up and I think 2018 is looking like a better year with hopefully double-digit passenger growth.”

As reported back in 2015, a consortium comprising Hamila Duty Free, Gebr. Heinemann and ATÜ Duty Free secured an eight-year contract to operate duty free airport shops at Tunis-Carthage, Djerba‐Zarzis, Sfax‐Thyna, Tozeur‐Nefta and Tabarka‐Ain Draham.

“In 2017, we have banked on higher passengers and higher spend per pax at all our airports,” added Tarek Hamila.

For insight and analysis on the North African travel retail market, including further comment from Hamila Duty Free, watch out for the November issue of TRBusiness.