Duty-free operators have struggled over the past five years, with industry revenue expected to decline at an annualised 1.4%. Despite growth in the number of international arrivals and departures into and out of Australia, industry trading conditions have been affected by volatility in consumer sentiment. Furthermore, growth in the value of the Australian dollar produced mix results for the industry. While the appreciation of the Australian dollar between 2009-10 and 2012-13 made international travel more affordable for Australian consumers, travel to Australia by international consumers became more expensive.
Duty-free stores primarily sell a range of goods to inbound and outbound international travellers. Duty-free stores are essentially warehouses that are licensed and controlled by Federal Government customs and excise legislation. These warehouses are permitted to operate as retail outlets to sell customable and excisable goods to international sea and airline travellers.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.