APTRA talks factors shaping the regulatory strategy

By Faye Bartle | Wednesday, 15 July 2026 13:46

Sunil Tuli, President of the Asia Pacific Travel Retail Association (APTRA), is giving TRBusiness an update on this year’s advocacy priorities, and the balancing act of advocating for a “channel built for export in the face of regulation designed for domestic markets”.

As APTRA points out in this exclusive interview, Asia Pacific is not one market but more than 40, with a diverse political landscape where regulation moves at different speeds and is rarely predictable.

“That structural reality sits behind almost every challenge the industry faces and it shapes APTRA’s regulatory strategy,” Tuli told us.

In terms of the advocacy priorities demanding the most attention this year, tobacco regulation is dominating, he said.

“Plain packaging and retail display bans top the agenda, alongside track-and-trace, enlarged graphic health warnings and flavour bans. Alcohol and sugar face parallel pressure, with regulatory agendas at various stages of development across key markets.”

Aviation security rules can also produce “disproportionate commercial fallout”, he added: “The clearest example is the restriction on liquids, aerosols and gels (LAGs) at Singapore Changi. Under a one-stop security arrangement between the EU and Singapore – signed in 2018 and implemented in November 2022 – passengers transiting Changi to EU destinations can no longer carry duty-free LAGs bought on an earlier leg of their journey.

“Only LAGs purchased at Changi’s transit area or onboard flights from Changi, in sealed tamper-evident bags, are permitted onward.

“With the conflict in the Middle East, Changi’s role as a transit point has grown in the first half of 2026 and the impact of the arrangement is increasingly impacting retailers and consumers at the originating airport, e.g. Australia, New Zealand, Cambodia and Taiwan.

“Security is the top aviation priority and APTRA fully supports that, but the procedure carries an unintended commercial cost. We are working with the ETRC, retailers and airports to explore potential solutions that let transiting passengers carry LAGs purchased on an earlier leg of the journey.”

Read on for more…

– TRBusiness — Image Credit: Changi Airport Group

Where is the greatest disconnect between regulators and commercial reality?

Tuli: The most damaging gap is the tendency to apply domestically designed health and consumer rules to travel retail without consideration for the export nature of the channel. APTRA’s core argument is that travel retail is an export channel, with goods typically exported and consumed elsewhere and, therefore, they should be treated separately from domestic health policy. Over the years, several Asia Pacific jurisdictions have formally recognised the channel’s differentiated status, but that recognition remains uneven across the region’s 40-plus markets.

How has APTRA’s advocacy approach evolved?

Tuli: APTRA’s Managing Director Anne Kavanagh leads an increasing focus on evidence-led, anticipatory engagement. Our member-exclusive quarterly Advocacy Report does the legwork for members, flagging what is coming by country and category before it crystalises into law.

We also pursue key opportunities for growth. In February 2026, India raised its arrivals allowance by 50%; the first increase since 2016. APTRA worked with leading airport owners and retailers in India over several years to support the case for an increase and we see further scope. This remains an active priority for us and our airport and retailer partners in 2026.

Where does the industry still need to align?

Tuli: Consistency is essential. Because threats surface unexpectedly and at different speeds, the industry’s voice could fragment by category and jurisdiction. APTRA’s role is to bring airports, brands, retailers, F&B operators and airlines together as one voice, to lead with the economy-wide value-driven case of tax, jobs and connectivity benefits rather than promoting narrow channel self-interest. That often means coordinating across borders with other regional associations, the DFWC and aviation bodies such as ACI and ASEAN.

What role should retailers, brands, airports and landlords play?

Tuli: Collective advocacy relies on the input of members. When brands and retailers share intelligence with us on emerging threats early, they can be tracked before they become law and potentially influenced. APTRA has multiple solid member relationships and several working groups with brands and retailers with that intention in mind. Airports and landlords can contribute the infrastructure and employment data that strengthens the economic case. APTRA’s regular reporting and occasional economic-impact assessments are tools most companies could not resource alone.

Are governments recognising travel retail’s economic contribution?

Tuli: This varies by government, and even by the ministry involved in a given issue. It helps enormously when we can quantify travel retail’s direct contribution to aviation. The growth context strengthens the case, particularly in markets such as India, where passenger numbers are projected to reach around 500 million a year by 2030, the total fleet is set to exceed 1,500 aircraft and duty-free operations are expanding across multiple airports under operators including Adani, GMR, Bangalore International Airport Limited and Zurich Airport International AG.

The connectivity and tourism link is real and recognised, but fragmented regulation shows it is not yet consistently appreciated in detail. Regulation may often look weighted towards tobacco and alcohol, but the ramifications stretch further. When these footfall-driving categories are threatened, the whole industry is exposed.

Which emerging issues should stakeholders keep a watch on?

Aviation-security carry-on rules will keep evolving; restrictions on power banks, beyond LAGs, are a reminder that security policy can quickly reshape the traveller experience with little notice. Tobacco and nicotine regulation will intensify, including next-generation products and tighter enforcement that constrains how the industry engages with governments. Sugar and alcohol controls are moving from policy formulation toward adoption in several markets. And the geopolitical and trade backdrop, with the evolving Chinese and Indian consumer and tourism outpacing retail growth, will determine where passenger flows – and regulatory exposure – concentrate.

The bottom line is that, in a region of more than 40 distinct regulatory regimes, APTRA’s role in protecting the industry depends on early anticipation of changes, speaking with one evidence-backed voice and persuading governments that travel retail is a differentiated, export-oriented channel whose contribution to aviation, tourism and connectivity warrants tailored regulation.