Travel retail off-piste: First Greenland, now duty free – Trump lashes out at TFWA after bid to buy the duty free industry rejected

Welcome to a new and occasional column in which we look at some of travel retail’s ‘alternative facts’ through equally alternative eyes.

US/FRANCE. US President Donald Trump has called off a proposed keynote address at the 2020 TFWA World Exhibition Conference after association President Alain Maingreaud dismissed the US President’s bid to acquire the rights to the global duty free industry as “absurdité” (nonsensical), The Moodie Davitt Report can exclusively reveal.

President Trump had reputedly set his sights on buying the duty free industry after being sharply rebuffed by Denmark over his proposal that the US should acquire Greenland (an autonomous Danish territory) – a notion that Danish Prime Minister Mette Frederiksen rejected as “absurd”. Deeply irked, the President subsequently called off an imminent planned state visit to the Scandinavian nation, where he was due to meet Queen Margrethe II, and eyed the duty free sector instead.

President Trump’s interest in Greenland was sparked by its vast reserves of untapped oil reserves and other natural resources such as coal, zinc, copper and iron ore. “Essentially it’s a large real estate deal,” he told reporters. Asked if he would consider trading a US territory for the island, the President replied: “Well, a lot of things could be done.” The Moodie Davitt Report understands that he had been considering Hawaii – the most Democrat-leading state in the country – as the makeweight in any deal.

Having taken to Twitter to vent his rage at Ms Frederiksen, President Trump turned his attention to the duty free industry – his interest piqued by a confidential invitation to deliver the keynote speech at TFWA World Exhibition 2020 in Cannes, France, in line with the association’s policy to avoid hiring deeply divisive political figures.

It is understood that he agreed to speak for a fee of US$12 million plus all remaining stocks of Trump vodka left in travel retail, provided that the US could acquire unfettered global rights to the duty free industry.

The President, an arch dealmaker, is understood to have been attracted by the channel’s core principles of low taxes, a tariff-free structure, and the potential – through US ownership – to benefit Chinese spending abroad and thus ease America’s US$323 billion trade deficit with China. He also believes that American strategic interests and military intelligence would be well served by controlling duty free shops in all key airports worldwide.

“As you know, I’m all for lower taxes and lower duties, believe me,” Mr Trump told The Moodie Davitt Report in an exclusive telephone interview (see Podcast below for edited highlights). “So I love the duty free industry. I do. I really do. It’s worth a lot of money. Big money. Billions and billions of dollars probably. Maybe trillions. It’s huge… humungous actually. But where’s America in the game?

“I heard on Fox News that there’s not one American travel retailer in your top ten*. Really? I mean really? I mean, the Chinese are there. The French are there. The Koreans are there. Heck, even the Swiss are in there and they’re meant to be neutral. Well no longer. No more. I want American companies to control the whole top ten. Heck, the whole top 25. We’re gonna make American duty free great again.”

The President plans to open a chain of duty free shops on the southern border. “It’s the only time I’ll make allowances for Mexicans,” he said.

The President then turned his attention to the key role played by the Chinese in the duty free industry, where they have become the key shopping nationality for travel retailers worldwide. “It’s not right. Not right. Not on this President’s watch – which is a gold Rolex Submariner by the way. Maybe on President Obama’s watch or Sleepy Joe’s watch, which would be a Flip Flop by the way… I mean a Flik Flak… but not on my watch. No way, no more. No longer. We’re going to take care of it. Someone had to do it and I am the chosen one.

“The Chinese are controlling the duty free industry. At home. Abroad. In fact, everywhere. Heck I was even in San Francisco Airport and they’re controlling it there. Los Angeles, Las Vegas, the same. Even Mexico. I mean Mexico! Really? It can’t continue. Not on my watch. We’re gonna take care of it.”

Pressed by The Moodie Davitt Report as to why the US should be able to control what is an independent global business sector, the President replied, “This isn’t my industry, this is an industry that should have been controlled by America a long time ago.

“In fact, you know what? It actually did use to be controlled by America back in the 60s, 70s and 80s,” he said in a reference to DFS Group co-founders Bob Miller (still a shareholder) and Chuck Feeney. “They were good people, tremendous people.

“Somebody had to sort it out. I was put here by people to do a great job and sort out the duty free industry. And that’s what I’m doing. Believe me. I’m doing it. Essentially it’s another large real estate deal. Like Greenland. Just bigger. Humungous.”

President Trump said that once America seizes control of the global duty free channel, he would implement a punitive MAGA-based airport tender model for US companies.

“You mean MAG, I think, Mr President,” The Moodie Davitt interjected. “Minimum annual guarantee.”

“No. MAGA. Make America great again,” the President retorted. He also spoke openly about his intention to open a chain of duty free shops on the southern border. “It’s the only time I’ll make allowances for Mexicans,” he commented.

However, President Trump revealed that his offer to acquire the duty free industry had been met with a “nasty” rebuffal by TFWA President Alain Maingreaud. In his response, sighted by The Moodie Davitt Report, the TFWA leader wrote, “The duty free industry is an autonomous industry and to believe that we can sell it to the United States of America is simply absurdité (‘nonsense’).”

[Click on the Podcast icon to hear edited highllights from Martin Moodie’s exclusive interview with US President Donald Trump]

That sent President Trump into a Twitter storm. “Duty free is very special with incredible people, but based on President Maingreaud’s comments that he would have no interest in discussing our purchase of the industry, I will be postponing my Cannes speech scheduled in 2020 for another time,” Trump raged.

“President Maingreaud was able to save a great deal of expense and effort for both the United States and TFWA by being so direct,” he continued on Twitter. “I thank him for that and look forward to rescheduling sometime in the future!”

The President (Trump not Maingreaud) repeated that message in his interview with The Moodie Davitt Report. “I thought it was an inappropriate letter. Totally inappropriate. All he had to say was no, we wouldn’t be interested in selling to us. He’s not talking to me. He’s talking to the United States of America. As I’ve said before, you don’t talk to the United States that way, at least under me. What is it about these Danish leaders anyway?”

When informed by The Moodie Davitt Report that it was the former TFWA President Erik Juul-Mortensen who is Danish and not Maingreaud, who is French, the President replied, “Fake news. They’re all Danes. Or part Danish. All of ’em. Believe me. I blame the Vikings. They swarmed all over Europe. No immigration’ control at all. France should have built a wall.

“And you know what? In 1999 it was the Danes that got rid of duty free in Europe. Can you believe it? Took away a tax break from the European people. Handed over control to the Chinese. The Chinese even allow their own people to buy duty free in China. That’s right. On Hainan Island. Like Hawaii, only smaller. President Xi is smart. Real smart. And what does the EU do? Sell out its own people. Well I can tell you one thing. We’re not going to allow that to happen to America. No more. Not on my watch.”

Asked if his decision to reject the 2020 speaking invitation in Cannes was final, President Trump said, “We’ll see what happens. Let’s see what happens.”

The Moodie Davitt Report closed the interview by asking President Trump for his view on TFWA’s choice of Tony Blair as a keynote speaker for this’s year conference. “A loser. Total loser. Took his people into war in Iraq. Wants to keep the British people in the EU. Lost the British people their duty free in 1999. Loser, total loser. And he costs a lot of money. A lot of money, really. Humungous. Could have had me instead. Total losers.”

*Source: The Moodie Davitt Report Top 25 Travel Retailers

Footnote: The Moodie Davitt Report has sought comment from TFWA on the decision to engage President Trump as a keynote speaker and his subsequent cancellation. Unofficial TFWA representative Andrew Pentol, who earlier had mounted a stirring defence of the choice of Tony Blair for the 2019 engagement, commented, “Industry stakeholders have every right to criticise conferences and events and suggest improvements, but do TFWA members have more of a right than non-members to voice opinions in terms of how the Association should spend its money?”

 

 

 

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