Duty-free shops fly on aviation boom

New Delhi: It seems that the current boom in the aviation sector has transpired across all the segments closely or remotely related to the industry. After ancillary services, its now the duty-free industry, which plans to ride on this success wave. The latest quest is to make India a duty-free haven on the lines of Dubai, Singapore and Bangkok.
Experts believe that if the Indian aviation sector continues to maintain this current growth rate, India may soon emerge as a transit hub for all passengers from south Asia namely Kabul, Lahore, Karachi, Kathmandu, Bhutan, Dhaka, Colombo and Maldives.
“With India’s own international pax growth of over 18% CAGR, more & more terminating flights being introduced and the existing ones increasing their frequencies, for duty-free shopping to gain is axiomatic,” feels Paul Topping, MD Asia, Alpha Airports Group.
According to Generation group, the global duty-free and travel retail industry is forecast to reach $45 billion in retail sales in 2012. The main engines for this growth, in terms of markets, will be Asia and the Middle East. As per rough estimates, the duty-free industry in India is pegged at around Rs 300 crore.
Duty-free players in India believe that with the upgradation of infrastructure at Delhi and Mumbai Airport and new airports coming up in other major cities such as Hyderabad and Bangalore, it will provide the much required impetus to the duty-free industry.
23/09/07 Aman Dhall & Dheeraj Tiwari/Economic Times

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Categories: Airports Sep 2007, General Aviation Sep 2007