US (HAWAII). DFS Group’s rollercoaster ride at its Hawaii stronghold continued last week as its exclusive duty free contract came under the microscope once again, Travel Retail Business reported.
A Senate committee hearing called for the break-up of Hawaii’s single duty free concession structure, arguing that the concept of a single on and off-airport duty free operator works against the public interest, especially if that operator is unable to fulfil its financial guarantee obligations.
DFS insists that the single operator system is the best solution for both the State and its visitors. DFS Hawaii attorney James Stone suggested that before bringing in any wholesale changes, the State might remember that DFS had contributed some US$2 billion to Department of Transportation revenues over the last 43 years.
A bill was recently approved to reinstate rent relief for Honolulu’s concessionaires who were badly hit by the post-September 11 travel downturn, aggravating mounting concerns over Japanese spending levels. The retailer still owes around US$ 44 million in back rent on its concession.
