Arrivals Duty Free Business Case Model

The Challenge

Traditionally, duty free at airports is located in departures areas.  Over the past decade, however, countries around the world have started allowing duty free on arrivals.  From Hong Kong, Australia, Switzerland and over other 50 jurisdictions, new revenues sources have been generated to help airports maintain lower aeronautical fees.

Our Role

InterVISTAS is a subject matter expert on the global history and evolution of arrivals duty free.  It has benchmarked ADF operations worldwide and maintains a database of ADF stores.  On behalf of Canadian airports, InterVISTAS developed an coalition of interests to advocate for change to enable arrivals duty free in Canada.  Furthermore, a business case and model was developed that documented the benefits to all parties and levels of government.

Results

The work InterVISTAS completed assisted in endorsement of Arrivals Duty Free by the federal Standing Committee on Finance.  As well the Government of Canada included Arrivals Duty Free in consultations for a federal budget.  While the issue is still under review for approvals, significant progress has been achieved to establishing the environment to establish Arrivals Duty Free in Canada.