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2018-19 Membership Renewals Are Due July 31, 2018

IAADFS has created membership renewal invoices for the 2018-2019 annual membership year covering the period of July 1, 2018 through June 30, 2019. As in the previous several years, dues invoices are not being mailed via the postal service but are instead generated in each member company’s online membership record.

The main billing contact for each company (the contact person listed in the company’s membership record) was sent an mail on June 7 with a link to the invoice that allows for immediate renewal with credit card or the ability to download and print the invoice for payment by check or wire transfer. Renewal payments are due by July 31, 2018.

IAADFS would like to thank its member companies for their continued support. Revenue from membership dues and the Summit of the Americas funds the association’s advocacy efforts and other industry initiatives for the benefit of our members and the overall duty free and travel retail industry.
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News from IAADFS
Reminder: Please Keep Your Online Membership Profile Updated

Industry News
"Use Bitcoin to Buy Your Duty-Free at This Airport"
"Duty Free Licenses to Be Extended to 10 Years"
"International Passengers Need Not Pay GST at Indian Airports' Duty-Free Shops"
"Hawaii Volcano Eruption Driving Away Millions in Tourism Dollars"
"Dominican Republic Announces New Tourist Entry Process"
"First Phase of Duty-Free Store Launched at King Khalid International Airport in Riyadh"
"Carnival Cruise Ship Receiving New Duty Free Store"
"Missed Deadline Could Delay Opening of Airport Retail Stores"
"Africa Is Now a Favorite Destination for Chinese Tourists and Tens of Thousands of Them Are Coming"
"Lotte, Shilla, Shinsegae, Doosan Vie for Duty-Free Biz at Incheon Airport"
"Havana Cruise Terminal to Triple in Size"
"Airports Fight Back Against Online Turbulence"

News from IAADFS

Reminder: Please Keep Your Online Membership Profile Updated

Members are reminded to keep their online membership profiles up to date to ensure the accuracy of our online database. This helps you stay informed about association activities, and since all members are able to log into the online directory and see contact information for other members, it ensures that your details are always current.

Please take a moment to log into the website and review the contact information that is on file for your personal record as well as for your company’s record, including your company’s brand profile (for supplier members) or store listing (for concessionaire members). Visit www.iaadfs.org and enter your login credentials in the Sign In box on the bottom right corner of the homepage, or click the image below to go straight to the sign in page.

If you don’t remember your login credentials, contact our office or use the Forgot Your Password feature on the website to retrieve your username and/or password. Please click here to download a helpful tips document showing how to perform updates in the website – but note that some of these update options are available only for the person who has access to your company’s master company record.
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Industry News

Use Bitcoin to Buy Your Duty-Free at This Airport
CNet (06/03/18) Serrels, Mark

A partnership between Brisbane Airport and the Australian startup TravelByBit will enable customers to use cryptocurrency as payment at all of the airport's retail outlets. There are 30 stores in the airport currently allowing passengers to pay for goods using Bitcoin and multiple other cryptocurrencies. "We did a test for two weeks and we launched it last week. We're gradually rolling it out. More are coming, we just need time to train up the staff," said TravelByBit co-founder and CEO Caleb Yeoh. "We're just trying to build a real world use case for cryptocurrency. Bitcoin is perfect for travel, there's no exchange rate issues or risk of credit card fraud."
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Duty Free Licenses to Be Extended to 10 Years
Korea Times (South Korea) (05/23/18) Ja-Young, Yoon

A task force has submitted its recommendations to the South Korean government on how to improve the nation's duty-free licensing system. Among the recommendations is possibly extending operational duration to a guaranteed 10 years for conglomerates obtaining licenses and operating duty-free shops. The current law enables a five-year guarantee, but some duty-free operators have complained of losses when they failed to remain in business after making huge investments. The task force has recommended allowing license renewal once for conglomerates and twice for SMEs, allowing operational duration for 10 years for conglomerates and 15 years for SMEs. The government also will issue more licenses when the number of tourists and sales at duty-free stores surge. A committee would evaluate the operator's performance, future plans, and efforts for job creation when determining whether to extend their licenses or not. The task force recommended that the government issue new licenses if the number of tourists in a particular province increases by more than 300,000 compared with the previous year and the average annual sales surge over 10 percent. The government will prepare final plans by July to revise related laws.
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International Passengers Need Not Pay GST at Indian Airports' Duty-Free Shops
Bloomberg (06/03/18)

International passengers purchasing goods at airport duty-free shops in India will not be subject to the Goods and Services Tax (GST). In March, the New Delhi bench of the Authority for Advance Ruling passed an order stating that the GST would be leviable on sale of goods from airport duty-free shops, prompting calls for the revenue department to provide clarification on the issue. An official who said the revenue department will soon offer clarification on the duty-free exemption noted that "the position of the revenue department has always been that we cannot export our taxes." The official added that the revenue department will clarify that duty-free shops will only have to collect a copy of the passport from the passenger to whom it sells the goods and seek a GST refund from the government later on. This means duty-free shops, like exporters, can claim a refund from the government for the GST it has paid in procuring goods from manufacturers, with a copy of the passport serving as proof of sale of the products. According to EY partner Abhishek Jain, "This would bring a lot of relief to duty-free shops and would keep them competitive with duty-free shops in other countries."
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Hawaii Volcano Eruption Driving Away Millions in Tourism Dollars
Reuters (05/21/18) Rosa, Jolyn; Hay, Andrew

Since the Kilauea Volcano began spewing lava and toxic gases on May 3, summer bookings for hotels on Hawaii's Big Island have plummeted nearly 50 percent, according tourism authorities. The National Park Service said the closure of the state's top tourist destination, Hawaii Volcanoes National Park, has cost the island $166 million alone. When about 2,000 jobs indirectly impacted by park tourists are included, that figure rises to $222 million. The Hawaii Visitors Bureau says tourism is the largest industry on the Big Island, accounting for more than 30 percent of private sector jobs in 2017. Meanwhile, Norwegian Cruise Line canceled stops on the Big Island for its cruise ships due to "adverse conditions," and Royal Caribbean Cruises canceled a port call in Hilo, the island's largest city, which is about 20 miles northeast of the volcano.
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Dominican Republic Announces New Tourist Entry Process
Caribbean News Now! (05/27/18)

As of April 25, international tourists arriving by air to the Dominican Republic no longer must pay the US$10 tourist entry fee, as it is now included in all airfare purchases. The announcement from the Dominican Tax Authorities aims to increase ease of entry for air travelers, shortening the amount of time spent in customs. Tourists entering via cruise port must continue to follow the existing entry requirements. Those arriving by air from the United States, Canada, Great Britain, the European Union, Mexico, and many South American countries only need a valid passport and the bundled tourist card to enter the country, while those with citizenship from elsewhere will need to apply for a tourist visa. "From the minute travelers arrive, we are dedicated to providing an exceptional experience in Dominican Republic," said Magaly Toribio, marketing advisor for the Dominican Republic's ministry of tourism. "This announcement supports our promise to offer an unmatched vacation."
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First Phase of Duty-Free Store Launched at King Khalid International Airport in Riyadh
Arab News (Saudi Arabia) (05/29/18)

Riyadh Airports has launched the first phase of the new duty-free store in the international terminals 1 and 2 at King Khalid International Airport in Riyadh, Saudi Arabia. It also plans to launch a package of projects and services that will facilitate and enhance passengers' experience, with the second phase of the project to be completed in mid-July. The new duty-free store offers a range of international brands that meet all passengers' needs, providing a variety of options at competitive prices. The duty-free shop at the airport has experienced fast growth, and more than 22 top brands have been added to the list of duty-free items.
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Carnival Cruise Ship Receiving New Duty Free Store
Cruise Fever (05/26/18) Souza, Ben

Beginning June 25, Carnival Cruise Line says a new duty-free store will be opened on the Carnival Spirit. Carnival Cruise Line has partnered with Heinemann Asia Pacific, a subsidiary of Gebr. Heinemann, to provide a mix of local and global brands such as Seafolly, Quay Australia, Swarovski, Swatch, Lacoste, and Clinique to Carnival's Australian guests. Heinemann Asia Pacific's move into the Australian market follows the success of an existing partnership with other Carnival cruise ships, including the Carnival Fantasy, Carnival Liberty, and Carnival Ecstasy. William Butler, Carnival's vice president of retail services, said, "We're pleased to continue our excellent relationship with Gebr. Heinemann with this enhancement of the retail experience aboard Carnival Spirit following its extensive dry dock. The retail experience at Carnival continues to evolve with sought-after brands and exciting new spaces, and we're delighted to work with Gebr. Heinemann in providing our guests with the widest variety of retail choices at sea."
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Missed Deadline Could Delay Opening of Airport Retail Stores
Cayman Compass (05/24/18) Whittaker, James

Forty-two bids were received by the Cayman Islands Airports Authority (CIAA) for 17 concession slots to run restaurants, shops, and duty-free stores in the new terminal at Owen Roberts International Airport, but the entire bidding process may have to be repeated because officials missed the December 2017 deadline for announcing the winners and failed to extend it. The CIAA is seeking permission from the applicants to extend the deadline until June 7. A letter sent to all bidders indicates that if CIAA receives "the unconditional consent" of all bidders, it could then notify the winners and losers immediately. If it does not receive unanimous consent, "the authority will then be compelled to advise all proposers that it intends to proceed with a new RFP [request for proposals]." If that happens, the shops, cafes, and restaurants likely will not be ready when the new terminal fully opens in December. There are concerns that the winners and losers of the bidding process had already been leaked and that unsuccessful bidders would not agree to an extension in order to give themselves a second chance at the process.
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Africa Is Now a Favorite Destination for Chinese Tourists and Tens of Thousands of Them Are Coming
Quartz (05/21/18) Dahir, Abdi Latif

Last year alone, Chinese travelers spent nearly $260 billion. Relaxed visa rules, increased interest in African culture and historical sites, and initiatives geared toward Chinese tourists will bring more Chinese travelers, and their money, to the continent. The Industrial and Commercial Bank of China recently launched a joint loyalty program with Kenya's Stanbic Bank to create incentives for travel, shopping, and leisure to tourists visiting the two nations. Meanwhile, a recent Travelzoo survey found that Africa was the top destination of choice for Chinese tourists seeking more adventurous holidays in 2018, beating Japan and Australia. In particular, visitors were attracted to Morocco, Tunisia, South Africa, Namibia, Madagascar, and Tanzania. Kenya has rolled out a marketing campaign to target China in hopes of surpassing the more than 53,000 Chinese visitors who traveled to the country last year. According to the travel intelligence company ForwardKeys, following relaxed visa requirements in Tunisia and Morocco, Chinese arrivals there surged 240 percent and 378 percent, respectively, on a year-over-year basis. Travelzoo expects that continent to grow in popularity among Chinese travelers as tourism packages diversify and airline travel becomes easier and more affordable. The United Nations World Tourism Organization says that as of 2014, tourism accounted for 8.5 percent of Africa's gross domestic product and generated 7.1 percent of all jobs.
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Lotte, Shilla, Shinsegae, Doosan Vie for Duty-Free Biz at Incheon Airport
Yonhap News (05/23/18)

Lotte Duty Free, Hotel Shilla Co., Shinsegae DF Inc., and Doosan Co. have applied for duty-free licenses to run stores at South Korea's Incheon International Airport. Bidding took place as Lotte Duty Free decided to return three of its four money-losing concessions to the airport, with sales dropping precipitously alongside significant declines in the number of tourists. Incheon International Airport Corp. (IIAC) has reorganized the three zones at the first passenger terminal to two for the bidding. An IIAC official said it will report two top candidates to the customs office for the final decision by early next month, with the plan to allow the new operator to open for business in July.
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Havana Cruise Terminal to Triple in Size
Get.com (05/25/18) Luehrs, Adam

The Cuban government said that as part of its tourism expansion plan, the island would triple the size of its main port in Havana, allowing it to manage at least six cruise ships at a time. The expansion could help the port accommodate at least 1 million passengers per year. Cuba has partnered with Global Ports to accomplish this expansion and manage the port for 15 years. Cuba has experienced large growth in the number of visitors to the island since the travel ban was lifted for Americans. Last year alone, Cuba saw a 156 percent increase in the number of cruise travelers to the city compared to 2016 figures. Numbers are expected to come in at around 500,000 this year, up from 328,000 last year.
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Airports Fight Back Against Online Turbulence
Financial Times (05/25/18) Powley, Tanya

Singapore's Changi Airport has employed self-service kiosks in Terminal 4, which use face-recognition software and automated check-in and baggage drop-off to smooth passenger flow and reduce wait times. Terminal 4 is expected to be a 100 percent self-service facility, and more airports around the world are investing in biometrics and technology to reduce wait times and costs. Non-aeronautical revenue, which for decades was the main driver of growth for airports, has recently come under pressure from technological disruption. The number of people flying rose 7.1 percent last year, but non-aeronautical revenue per person has fallen at airports across Europe and plateaued in North America in the last few years. Hean Ho Loh, partner at Boston Consulting Group, thinks the industry is at an "inflection point" where there is a greater risk of airports being disrupted by rival sectors rather than other airport operators. In Europe, retail revenues — which make up two-fifths of European airports' non-aeronautical revenues — have been hit by the shift to online retail, falling to €2.73 per passenger in 2016 from €2.91 per passenger in 2010. Research by DKMA found that satisfied passengers are likely to spend 10 percent more time at the airport, twice as likely to shop, and spend 7 percent and 20 percent more on retail and duty free, respectively.
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Abstract News © Copyright 2018 INFORMATION, INC.
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June 8, 2018


The International Association of Airport Duty Free Stores (IAADFS) is an international trade association with approximately 400 company members. The purpose of the IAADFS is to promote the airport duty free industry as an important segment of the international business community; provide activities whereby operators of airport duty free stores and their suppliers can exchange information on products and their duty free market potential; and serve as a collective voice in representing the airport duty free industry on common issues affecting the membership.

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