Letter from the Editor
Asian
awakenings
C
hina recently relaxed visa restrictions for arrivals in Beijing and Shanghai for travelers transiting to other countries. The new 72-hour no-visa policy came at the end of 2012 without much fanfare, but it’s a big move. Not only does it make inbound travel easier, but it will also enable major international events to be held in China, a destination that event organizers have shied away from up until now. In this issue guest writer Alexander Glos, CEO of i2i Group, offers his view on what this new step means. Shortly after the no-visa window announcement, TFWA, in partnership with APTRA, hosted an industry conference in Beijing. “China’s Century” wrapped up March 7 and offered 372 delegates from 200 companies a close look at how the duty free and travel retail industry is faring in this fast-changing nation. By all accounts, exciting times are ahead. “We are only at the beginning of the air travel boom in China,” TFWA President Erik Juul-Mortensen told attendees. “Aviation analysts predict that passenger numbers in China—domestic and international—will quintuple to reach around 1.5 billion by 2030. The question is, are international brands ready for this huge opportunity?” China does get a lot of attention, and yet the nation’s vast duty free and travel retail potential is still more or less inaccessible thanks to a dense labyrinth of rules and regulations, in addition to political uncertainties. But there’s another rising star in Asia that has yet to get its share of the spotlight: India. India’s government has been busy removing obstacles to investment and economic growth, with particular focus on the aviation sector. The positive benefit for the country’s duty free and travel retail business—which has a long way to go to reach full potential—is clear. The Nuance Group and Delhi Duty Free Services, India’s two top duty free retailers, have already shown the kind of success that can be realized in this market, even amid an economic downturn. To support and develop the industry’s potential in India and across Asia, The Asia Pacific Travel Retail Association (APTRA) continues to produce invaluable research and information while also engaging in strong advocacy. At TFWA Asia Pacific in Singapore, APTRA President Sunil Tuli will give attendees a snapshot of the campaigns the association and its global counterparts are pursuing, whether it’s around public health warnings on duty free products, taxation issues, product display bans or heavyhanded inbound allowances that could strangle sales. A detailed development of Tuli’s talking points will be presented at the TFWA industry association working lunch on Monday May 13. Attendees will also work on action plans for the year ahead. I hope you enjoy this issue of Asia Duty Free. The industry in the region is certainly rife with new developments, and I’m looking forward to discussing all the happenings with you during the conference and exhibition portions of TFWA AP.
Asia Free & Travel Retailing (ISSN 1360-9548) is published annually by Global Marketing Company Ltd., 26 Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distributed in the following countries, states, regions and territories on the Asian continent and in the Pacific Rim: Australia, Bangladesh, Bhutan, Brunei, Cambodia, China, Fiji, French Polynesia, Guam, Hawaii, Hong Kong, India, Indonesia, Japan, Macao, Malaysia, Maldive Islands, Myanmar, Nepal, New Caledonia, New Guinea, New Zealand, Philippines, Saipan, Samoa, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Tonga, Vanuatu and Vietnam. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. May 2013, Vol. 17, No. 2. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2013 Asia Duty Free & Travel Retailing. Asia Duty Free & Travel Retailing 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR Hibah Noor hibah@dutyfreemagazine.ca ASIA ASSOCIATE EDITOR P. Convery padraic.asiadutyfree@gmail.com CONCESSIONS, LIQUOR, & TOBACCO EDITOR Ryan White ryan@dutyfreemagazine.ca ASSOCIATE EDITOR Melissa Silva melissa@dutyfreemagazine.ca ART DIRECTOR Patrick Balanquit patrick@globalmarketingcom.ca CONTRIBUTORS Andrew Brooks Claire Malcolm ADVERTISING SALES
Kind regards,
ADVERTISING & MARKETING MANAGER Kim Carrera kim@dutyfreemagazine.ca
Hibah Noor Editor hibah@dutyfreemagazine.ca
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ASIA DUTY FREE & TRAVEL RETAILING MAY 2013
CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca