Page 8 - The Summit 2021 flip book

INSIDER

DFWC webinar analyzes whether 2021 is the Year of Recovery?

The Duty Free World Council held remember when discussing a digital future U.S./Central America
another critical, far-reaching webinar in with our airport and airline partners,” she In the Americas, recovery will differ
February, with the virtual event featuring noted. quite significantly depending on the
representatives from all the regional Patrick Lucas, Vice President market.
associations presenting updates on the state Economics at ACI World, presented a deep Rene Riedi, president of International
of the industry. dive into the numbers defining the impact Association of Airport and Duty Free
Under the theme of Year of Recovery? on aviation from the lockdowns caused by Stores, presented an overview of the
Tax Free World Association Managing the coronavirus. situation in the United States and Central
Director John Rimmer warned that the With a 63+% decline in passenger America and the efforts the association had
situation could get worse before it gets traffic in 2020, ACI World estimates the taken on behalf of the industry at the time.
better, and advised a “sober look” at the economic loss to be US$112 billion last Among the major initiatives, Riedi
data in planning for the future. year. This would be equivalent to the 85 said that obtaining financial relief for the
“Recovery will be far from easy or busiest hub airports having all of their Duty Free and Travel Retail industry due
smooth,” he cautioned. revenue wiped out, he said. to the impacts from the pandemic was
DFWC President Sarah Branquinho And with the rampant spread the IAADFS’s main priority, and that the
said recovery will be all about opening of existing and new variants of the association had coordinated its effort with
borders safely, and reiterated that the travel coronavirus, countries worldwide are other airport concessionaire organizations
industry is advocating testing and vaccines, slamming shut their borders to travel and to do so.
instead of quarantining, which is “stifling instituting new lockdowns this year as well, The COVID-19 relief package
travel the world over.” the consensus is that real recovery to travel signed into law by then President Donald
Detailing the steps being taken by will not begin until later in the second half Trump on Dec. 27 2020 contained critical
aviation group IATA (International Air of this year, and will be in select markets assistance for airport concessionaires in the
Transport Association) to encourage only. amount of $2 billion. The COVID-19 relief
opening borders, Branquinho informed In fact, the experts are looking more package also included new funding of the
listeners that the DFWC had reminded at 2024 for widespread recovery rather Paycheck Protection Program (PPP) which
IATA that duty and tax free retail are an than 2023. The bright spot, however, is expired on Aug 8, 2020. The second round
integral part of the total business model and that pent-up demand for travel is strong is funded with a total of $320 billion.
that safeguards need to be built in to protect and growing, so when borders open, and Ed. Update: A “Biden” relief bill
our ability to make those sales. vaccines are readily available, recovery signed in March includes $14 billion for
“This is something we’ll be working should flourish. airlines and an additional $9 billion for
on with IATA and that we all need to airports and other businesses. The Biden

ASUTIL’s Jose Luis
Donagaray, ACI World’s
Patrick Lucas, FDFA’s
Barbara Barrett and IAADFS’s
(Dufry) Rene Riedi discuss the
recovery prospects for the duty
free and travel retail business
in the Americas during the
Duty Free World Council
webinar in February.

The Virtual Summit of the Americas Issue April 2021 8