Page 32 - TFWA World Exhibit 2023 Special Edition

INSIDER

The impact of devaluation on duty free sales

Duty free sales in Argentina have (converting prices posted in USD at the The biggest medium-term worry is
held up remarkably well since residents official rate). This gives travelers, local or how the devaluation will affect future
and international travelers returned to the international with pesos in their wallets or air ticket sales. December, January, and
country`s airports, seaports, and border in their credit cards, the chance to buy at a February are major months for southern
stores once COVID-19 restrictions were rate below the grey market rate that most hemisphere summer air travel but the
relaxed. Even though international air use as the “true” rate. presidential elections taking place in
passenger numbers are still about 20% The jury is still out on what happened October make the impact on air travel and
below pre-pandemic figures, suppliers tell after the “surprise” devaluation on August duty free sales during the season more
Travel Markets Insider that sales are close 14th following an unexpected victory from uncertain.
to 2019 levels and some admit they are right wing Libertarian candidate Javier Another indirect result of the currency
seeing growth. Milei in the Presidential Primary elections. imbalances in the region is the mass
Brazilian and Argentine visitors along The official dollar moved to $365 ARS; arrival of Uruguayan, Paraguayan and
with a few Paraguayans are also back in at the same time the Blue (or the grey Chilean shoppers to buy all sorts of goods
numbers at border stores in Argentina and market) Dollar moved to $790 ARS, to in Argentina. Border towns are extremely
Brazil in Puerto Iguazu and Foz de Iguacu. fall back in recent days to 710/720. The busy as non-Argentine shoppers take
Travelers report long lines to pay at the devaluation was not accompanied by any advantage of multiple exchange rates to
London Supply flagship store in Puerto other noticeable economic measures to buy in Argentine stores. Reports of five
Iguazu. protect the economy and most analysts to six hour queues at international road
Local and international travelers were predicting even higher inflation and a bridges to cross from Uruguay to Argentina
are also opening their wallets at the 2-3 point fall in the country’s GDP. are not an exaggeration. Buquebus and
Downtown, Airport and Free Zone stores Whereas travelers paying in US Colonia Express are also seeing heavy
in Tierra del Fuego. Operators won’t quote Dollars are still paying the same price, traffic from Uruguay to Argentina as
figures, but the shops have been busy, and those paying in Pesos are now paying 21% shoppers and travelers cross the River Plate
tourists are in a purchasing mood. In their more than they were pre- August 14th. to shop or merely enjoy a great weekend
2023 Half Year results, Dufry commented No one is saying if this has had a negative at a decent price. Although the Uruguayan
that Argentina was one of its best effect on sales. Local residents with tourists are traveling to take advantage of
performing markets, due to local currency confirmed air tickets are still traveling and local market prices, the duty free stores
developments. shopping in the duty free stores in Ezeiza onboard the ferries are also seeing more
Most analysts took this comment to and Aeroparque. It is unclear if they are people take advantage to purchase goods
refer to a local regulation that permits the buying the same quantities as originally not available in their home country.
company to invoice in Argentine Pesos planned. JG

New flagship vessel for Buquebus

Argentine-Uruguayan ferry company
Buquebus is set to launch the world’s
biggest sea going catamaran in early 2025.
The vessel temporarily identified as INCAT
Hull 96 is currently under construction
in Australia by Incat Tasmania. The new
vessel will operate on the Buenos Aires-
Montevideo route.
The ferry will be the world’s first
zero emission ferry and will be fully
battery powered, with e-motor driven
Wärtsilä waterjets as the main propulsors.
The battery modules and energy storage
system package are four times larger and will accommodate 2,100 passengers measure 2100sqm, double the size of
than on any electric/hybrid ship currently and 226 vehicles. The current Buquebus the shop onboard the Francisco, which
operating. The boat was originally designed flagship Francisco measures ninety-nine currently connects Buenos Aires and
to be powered by Liquid Natural Gas, meters. Montevideo
but Buquebus asked the shipbuilder to The boat is scheduled for launch in Q4 Duty free concession manager
modify the design to incorporate the of 2024 and Buquebus is planning to start Bernabel Trading / Rio de la Plata Duty
latest technology, in this case designed by service with the vessel in early 2025. Free is already talking to its leading
Finnish company Wärtsilä. The duty free shop will be the biggest customers about the vessel but has not
The vessel will be 130 meters long duty free store onboard a ferry and will announced an exact launch date. JG

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