The Irish Duty Free Alliance (IDFA) has flagged the sizeable economic opportunity should a post-Brexit return of duty free sales on routes between the United Kingdom and Ireland materialise.
An economic impact study entitled, ‘The Economic Impact of Reintroduction of Duty Free and Tax Free Sales Between the Republic of Ireland and the UK after Brexit’ suggests the restoration of duty and tax free sales will deliver an additional €45m ($53m) to the domestic economy (GVA) and fuel regional revenue gains.
Other benefits include generating 450 jobs in a move that would affect a ‘broadly neutral Exchequer impact’, according to the study, which draws on empirical data from Irish airports, ports and suppliers.
The findings emerge as the IDFA continues to argue its case to secure the immediate return of duty and tax free sales on routes following the end of the Brexit transition period, which is set to last until December 2020.
‘CLEAR ECONOMIC CASE’
Anthony Foley, Associate Professor of Economics at Dublin City University Business School said: “The return of duty free sales on the Ireland-UK route will increase economic output and employment, with additional revenues supporting the local and regional economy across Ireland.
“It will also offer a substantial and cost-effective showcase of Irish products and brands to millions of passengers each year through Irish airports and ports.”
As TRBusiness notes in the June issue, available soon, the potential return of duty free sales to travellers on routes between the UK and EU 27 is not dependent on the UK’s subscription to a Customs Union with the EU or retaining Single Market access.
The IDFA notes that the UK’s relationship over the important coming months will not impact the return of duty free sales for Irish travellers to the UK.
Frank O’Connell, Chairperson of the Irish Duty Free Alliance commented: “The IDFA shares the Irish Government’s desire for as ‘soft’ a Brexit as possible.
“Regardless of the final agreement on the Single Market or the Customs Union, the return of duty free sales will secure a positive outcome from an otherwise undesirable situation.
“The findings of Professor Foley’s economic study show there is a clear economic opportunity at the end of the transition period and we believe this additional economic impact and job creation will prove to be very popular with the Irish public.”
TRBusiness has reached out to the IDFA for further information on Ireland-UK’s estimated duty and tax free monetary contribution (airline and ferry sales) to the global industry.