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EGYPT. Egyptian duty free has been hit hard by a strict new regulation that came into force last week, which outlaws the sale of liquor and tobacco in downtown duty free stores and limits it in airport Arrivals shops.
Under the new Arrivals duty free rules, travellers will be able to purchase just one bottle of spirits (previously the limit was four) and tobacco allowances are cut from four cartons of cigarettes to one. Departures duty free sales are understood to be unaffected. The rules were implemented following a decision by the Ministry of Finance.
According to local news reports, the new rules have been introduced to boost sales in the domestic economy.
Duty free retailers are battling to have the new regulations reversed, according to Sherif Toulan, Business Development Director at Egyptian retailer and distributor IDF Trading & Agencies. And he said the impact on the business could be dramatic.
He told The Moodie Report: “This alarming regulation came out on 13 December. All operators have met and are currently lobbying against it. If this new regulation remains, we expect the Egyptian duty free market to drop at least by -35% across different categories.”
Another industry source told us: “The Civil Aviation Ministry and also the Ministry for Tourism will both take this matter to Cabinet. Given the fall in tourists and its impact on the national airline, and the huge investments in airport infrastructure, I expect full support from Civil Aviation to rescind the decision.”
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Duty free sales at Cairo and other airports stand to be hit hard by the new regulations |
