No Liquids, No Duty-Free Sales

As a result of this week’s foiled liquid-bomb terrorist plot, almost all liquids are banned as part of an airline passenger’s carry-on luggage, and duty-free shops around the world are feeling the pinch resulting from what should be a roaring trade.

The duty-free shop at NAIA Terminal 2

[UPDATE: Want to see more pictures of Philippine airports? Visit The Unlawyer's Photoblog for more.]

Let me rephrase that: the ban is taking a huge chunk out of their sales. Now.

“LONDON — The world of whisky at Heathrow Airport’s Terminal One is usually brimming with passengers stocking up on big bottles of liquor before boarding their flights. Yesterday, sales slowed to a trickle. “Everything here is liquid,” moaned a salesman, Michael Davis.

“Duty-free and other airport retailers world-wide are bracing for a massive slowdown in sales, after U.K. and U.S. authorities yesterday banned liquids, creams and gels from passengers’ carry-on bags, following a foiled plot to blow up U.S.-bound jetliners. The restrictions apply to many of the products that international air travelers often buy as gifts for others or themselves — including duty-free perfume, wine and liquor.”

Nobody knows when these new, stricter regulations will remain in forced. If sales continue to plummet, its effects will certainly be felt elsewhere:

“Retailing contributes a big chunk of airport operators’ income. Stores pay airports high rents and often fork over a small percentage of their sales. A drop in that income could pressure airports to increase landing fees — a cost the cash-strapped airline industry will be hard-pressed to bear.”

For travellers flying to the Philippines, skipping the airport duty-free shop at your airport of departure may be a money-saving idea, that is, if you intend to buy some wine or liquor for yourself or your friends. It will cost you less if you buy it at a domestic liquor store or wine shop because surveys say that these goods are cheapest in Manila, even with taxes and duties included.

UPDATE 08/14/2006: Varifrank saw this depressing scene at a US airport last Friday:

“A good question was asked earlier about the impact on the stores at the Airport. As we all know, airports have become malls, giving the flying population a place to shop between flights. Well one very dramatic impact this week has been to stores at the airport that sold liquids, such as “The Body Shop”, or a few boutique wineries and the Duty Free stores.

“They are all closed. They arent even going to try. Say good bye to that business model. I wonder of the stores that rent DVD players are next.”

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One Response to “No Liquids, No Duty-Free Sales”

  1. [...] The Unlawyer talks about the effect this week’s terrorism threat has on duty-free sales and the retail enviroment in airports (see: No Liquids, No Duty-Free Sales). [...]