FRANCE. Association Française du Travel Retail (AFTR), which represents the interests of industry players across France, last week released details of a first major study into the contribution of the sector to the economy.
AFTR officials said the study would make a big contribution to explaining and educating “what is at stake in terms of travel retail in France”, notably to government regulators and other authorities.
Key findings include that travel retail represents €14.9 billion in total turnover generated (across the value chain), delivers a €6.9 billion contribution to French GDP, with 80,200 full-time jobs and over €1 billion in tax and social revenues paid through the industry’s activities.
Commissioned by AFTR, the study titled ‘The Contribution of Travel Retail to Tourism and the Economy in France’ was compiled by business advisory firm BDO and presented at TFWA World Exhibition in Cannes.
AFTR President Candice Cadreils (also Head of Commercial at Aéroports de la Côte d’Azur) said that the study reinforced industry thinking about its contribution to the French economy, which is now backed by hard data.
“It is good news because we have been saying to government for many years that travel retail contributes to the economy, and we are pleased to see how the figures show this.
“This will also save us time and help us deliver our message more efficiently to government as it explains who we are and what we do.”
Of the sales, GDP and employment numbers above, AFTR noted: “Those four figures cover the whole value chain: activity on-site, spending with French suppliers, and the wages that employees then spend elsewhere in the economy. Altogether it amounts to roughly 0.2% of French GDP.
“Even before suppliers or employee spending are counted, the direct, on-site activity alone accounts for 33,000 jobs, €3.6 billion of GDP and €8.6 billion of turnover, and each of those direct jobs supports roughly 1.4 further jobs elsewhere in the economy.”
Airports lead the way in contribution to GDP and jobs, though in France rail stations, ports and ferries are also key.
AFTR highlighted travel retail’s status as a proven economic contributor; a driver of France’s image abroad and a genuine part of the tourism eco-system.
A supporting consumer survey of 982 travellers across nine nationalities backs up the core findings.
The survey showed that “eight in ten travel retail purchases complement, rather than replace, the spending travellers would otherwise make in town, adding new spend to the French tourism economy rather than simply moving it around”.
The survey also crucially reinforces France’s image, with 77% of travellers saying their experience in travel retail shops “meaningfully improved” how they felt about their trip overall.
In addition, eight in ten travellers said travel retail shops “contribute strongly to France’s touristic image”.
Some 90% of travellers said they discover French products, brands or expertise through travel retail shops, and 60% said local products help promote France abroad.
Some 63% of travellers rate the offer at French airports, stations and ports “as equivalent to or better than what they would find in town or online, and purchases happen right across the journey: 64% at departure, 52% during connections, 33% en route”.
Importantly, noted AFTR, the spread of employment provided by travel retail is national, not just focused on the largest gateways at Paris Charles de Gaulle and Orly airports.
The Île-de-France (9,100 jobs) leads, largely thanks to the two major Paris airports, but Provence-Alpes-Côte d’Azur (2,430 jobs), Auvergne-Rhône-Alpes (1,690) and Occitanie (1,630) all support strong employment. Travel retail also delivers around 1,000 jobs in France’s overseas territories.
AFTR also said France over-performs relative to its size within Europe. In airports alone, French turnover is close to 20% of the European total, from just 8% of air traffic.
International visitors also spend considerably more than domestic ones: travellers from Saudi Arabia, China, the USA and Mexico report a median basket of €200 to €999 per visit, against €50 to €199 for other Europeans and under €50 for French domestic travellers, with around a third of Saudi and a quarter of Chinese respondents spending over €1,000.
“That international spending power is one of the clearest reasons the sector’s contribution is as large as it is,” stated AFTR.
AFTR board members also addressed the impact of the study.
Lylian Vignau (representing Lagardère Travel Retail) said the fact the industry now has a data-backed sizing of the market gives it certainty in speaking to authorities. “For the big brand houses in alcohol or beauty, you can see why they invest so much in France travel retail as it is their window. It was already clear but having the figures shows even more why this market makes sense.”
Sylvie Rougeaux (Moët Hennessy Travel Retail) added: “Travel retail allows people to discover our products, but also to discover the savoir-faire. It is very important the French government understands not only the economics behind this, but also the halo effect it can have. Tourism is very important for the French economy, and what we do helps more tourists to come back and to have a better experience.”
Board members also reinforced the vital role of travel retail in encouraging purchases of local products across the market.
Separately, AFTR has completed a rebranding announced last year, with a new identity and website. The organisation was founded as Association Française du Commerce du Voyageur (AFCOV) in 1988. ✈
