UK/EUROPE. The European Travel Retail Confederation (ETRC) has unanimously re-elected Sarah Branquinho as President at its Annual General Meeting today (29 June).
The organisation is involved in extensive behind the scenes negotiations and lobbying with all stakeholders to ensure an immediate return to duty free sales once the UK leaves the European Union (EU), and not some time down the track, it said at a media briefing.
Despite the UK general election delaying talks and shifting the political landscape in the country, the ETRC remains confident that the process of reinstating duty free is on track.
Branquinho, who said she was honoured to be re-elected to serve another year as President of ETRC, explained that Brexit presented a “huge opportunity for the industry and with Brexit negotiations now in full swing, will occupy centre stage” in the year ahead.
“There are, however, many other important issues on the industry agenda including product labelling, transport security, restrictions on sales of tobacco and alcohol, and I look forward to continuing to strengthen the voice of duty free and travel retail in Europe,” she said.
The ETRC told media that from both an EU and UK perspective, the immediate return of duty and tax free sales post-Brexit presented huge potential benefits for transport and tourism industries. It would significantly improve connectivity by bolstering the revenues of airports, airlines, ports and ferry operators at a time when there is uncertainty about future rules on the free movement of people and goods, the organisation noted.
Branquinho commented: “We have received positive feedback across Europe for an immediate return to duty free sales once the UK leaves the EU, but this is far from being a done deal. A lot of work needs to be done at a technical and political level to make this a reality and we urgently need the full support of the entire industry.
“With over 150 million air passengers and over 40 million passengers by sea and Eurotunnel, an immediate return to duty and tax free sales will be transformational for the industry in Europe. Rest assured that ETRC is doing all it can to ensure a positive outcome.”
The ETRC urged members and the duty free industry to financially support it as it continues a programme of lobbying and commissions studies that assess the potential economic impact of a return to duty free. The organisation explained that Brexit offered a “one-off” situation that would benefit the entire industry, and that financial support should be seen as an investment by companies.
Some 35 delegates attended the Annual General Meeting, and the ETRC acknowledged the strong support of members and national associations.
The organisation also addressed the position of airports and ferries, which while supportive of ETRC’s position and the potential return of duty free, were also occupied by practical issues. Airports and airlines are concerned about having an open skies agreement, while the ferry industry’s most important issue is border control and being able to get freight through.
“They are mindful of these issues but are nonetheless engaging with the ETRC on the issue of the return of duty free,” said Branquinho.
The challenge now for the ETRC is to convince politicians, member states, HM Revenue and Customs, and other stakeholders of the positive impact of a return to duty free and to guard against any lethargy or unwillingness to reinstate sales on the first day the UK leaves the EU, rather than at some point further down the line. “We are hopeful things would have progressed significantly by [TFWA World Exhibition and Conference in Cannes in October],” the organisation said.
