FRANCE. French duty free association AFCOV has reinforced its commitment to making a case for the introduction of arrivals duty free in the EU among legislators. It discussed this and other priorities at a press briefing last week in Cannes during TFWA World Exhibition.
The event was hosted by AFCOV President (and former Aéroports de la Côte d’Azur Commercial Business Unit Director) Filip Soete, who was joined by advisor Antoine Clément (Hume Brophy).
AFCOV (Association Française du Commerce du Voyageur) represents around 30 companies in French travel retail, including the major airports, travel retailers (from airport to ferry to rail channels) and brand owners.
Soete said that AFCOV had gained broad support for its activities among the wider airport community in France, notably the French Airport Union and the French spirits federation (Federation Francaise des Spiritueux). These relationships have aided a high level of engagement with legislators, including the office of the French President, said AFCOV.
“Arrivals duty free is our top priority, and a subject on which we work closely with ETRC. It’s still tough, but with COVID it became an opportunity. There is good reason to introduce a new channel after a period in which airports have struggled so much and lost so much money. Duty free on arrival can help them restart and doesn’t cost the tax payer anything. It’s an easy measure that could lift revenues by 20-25%.
“It’s not a quick process, and time is moving on, but we continue to work hard. One issue is that there are many new people in the French government so in some cases we have had to restart contact with ministers in various departments.
“And we have a new mission too. The members of parliament have a real role in decision making as the Macron government does not have the majority it once had and needs support to pass a vote, so we must be more engaged with our allies in parliament than ever before. The issue is alive at European level, and we are aligned and playing our role. We hope it’s part of the tourism package in Europe that will appear next year.”
As reported, an EU Commission study on regional travel & tourism is expected to be produced by January 2023, which will feed into an impact assessment that will consider several policy options, hopefully by Q2 next year. This will cover areas such as VAT relief for tourism, but industry campaigners are optimistic that it can also include a proposal to amend EU excise duty and VAT directives to allow duty free sales for inbound passengers to the EU, as part of a new tourism framework.
Soete added: “We will act alongside our partners, led by airports, for which non-aeronautical revenues are so crucial. Creating alliances such as those with the airports or spirits federations helps amplify our voice and ensures we are heard when it comes to big decisions that affect us.”
Soete said that for 2023, a key objective beyond arrivals duty free is to work more on sustainability – a theme that has become even more important post-pandemic.
“An association is the place to discuss and work on initiatives such as this. We are setting up a working group between AFCOV and the airports association UAF to drive quick wins and develop some long-term goals around sustainability. This is headed by AFCOV Secretary General (and Lagardère Travel Retail Duty Free Global Chief Executive Officer) Lylian Vignau.”
The other key objective, said Soete, is to ensure improved networking and sharing of best practice among members. A gathering of members at the home of Krug in Reims in July helped kickstart this process. “These meetings help foster a good spirit,” said Soete. “It also encourages members to become more active and committed.”
AFCOV has also recently expanded its board, adding Toulouse Airport Commercial Director Bruno Balerdi. More board additions will follow, reflecting the role and importance of the organisation.
“We want to have several more, including brands,” said Soete. “We also aim to have more members. I would like to increase our numbers to 50 one day if we can. With that in mind, as an association we also aim to be more inclusive, which means using English as well as French language, so non-French speakers can join our meetings. It is a request of some of our members.
“Overall we want to be more positive, open and help make change on behalf of our members, and defend the industry alongside our partners at ETRC.”
