L-R: ASUTIL’s Gustavo Fagundes, Diego de Freitas and Carlos Loaiza-Keel at the ASUTIL press conference at TFWA World Exhibition & Conference 2024. Credit: TFWA/Nathalie Oundjian.

Ahead of its Lima conference, the Asociación Sudamericana de Tiendas Libres (ASUTIL) has briefed on the dynamics at play in Latin America’s vibrant duty free and travel retail market, from the “incredible” tourism potential of the region to key advocacy issues. 

International passenger traffic in Latin America (LatAm) is on the up with airlines in the region posting a 14.4% traffic rise in 2024 over full year 2023, according to International Air Transport Association (IATA), representing the second highest growth rate after Asia Pacific.

Furthermore, annual capacity climbed 14.3%, with LatAm claiming 5.3% of the world’s air passenger traffic. The positive uplift is inspiring a confident start to 2025.

“We are seeing a strong passenger growth in the majority of the airports in the region resulting in a growth of inside the region and a better connectivity from Latin America to the main origin/destination regions like North America and Europe,” Gustavo Fagundes, ASUTIL Vice President told TRBusiness. “This trend reinforces the sector investment mode resulting in a better commercial infrastructure within the region in qualitative and quantitative terms.”

A key project on the radar providing an exciting backdrop to the ASUTIL Nexus Conference, taking place in Lima from 3-6 June 2025, is the opening of the new Jorge Chávez International Airport, which is set to commence operations on 30 March 2025 (see p7 of the TRBusiness March e-zine for an update on Lagardère Travel Retail’s offering within the new terminal).

Gustavo Fagundes, Vice President, ASUTIL.

Borders update

Looking at developments in LatAm’s border business, the regulatory environment in Brazil has been under the microscope. ASUTIL’s outlook is positive.

“The border business at the Brazil side is going through a special moment taking advantage of the learnings coming from the difficult last years,” continued Fagundes. “We believe that the regulatory framework is being better understood by the industry and the online controlling system of Customs reached a stability mode enabling the sector to grow strongly.

He added: “Regarding the Uruguayan side of the business, they keep on showing their resilience and capability to re-invent after the Covid period to live a new phase of prosperity.”

The association’s advocacy efforts are amping up ahead of the Fourth session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products (MOP4), which is scheduled to take place during the week commencing 24 November 2025 at the WHO headquarters in Geneva.

“Efforts related to the control of the illicit tobacco trade are a top priority in our advocacy work, without neglecting other regulatory issues related to duty free shops (allowances for sure) and regulatory aspects of border shops in countries such as Brazil and Uruguay,” explained Carlos Loaiza-Keel, Secretary General, ASUTIL.

“This year, the World Health Organization has commissioned a report on the relationship between the duty free channel and the illicit tobacco trade, using a number of countries as examples, and the DFWC has updated the report it commissioned a few years ago and compared it with reliable sources. Our task this year will be to raise awareness of the fact that the duty free channel is not a contributor to this pertinent issue, the illicit trade, which our partners are openly and consistently fighting. The duty free industry has a long exemplary history and uses a well-established, highly regulated, transparent and secure supply chain.

“In our next conference in Lima, this issue will again be very relevant and prominent, even more so than in the previous one, as the participants will be able to see in just a few months.”

In the meantime, ASUTIL is keeping its members updated on the evolving business landscape in the region. Fagundes said: “The tourism potential of Latin America is incredible, the region has a diverse environment that encompasses business, buying, nature and culture destinations that are world class. The warmth of the people in the region is rarely found elsewhere.

“Our airport infrastructure is developing strongly, and the commercial area is following it with awesome areas generating genuine experiences for the travellers. Nevertheless, we still face some headwinds regarding the volatility of the exchange rate when compared to hard currencies, especially the dollar, and social and economic challenges that are typical of developing countries.”

To read the full analysis, access the TRBusiness March e-zine by clicking here.