NEW ZEALAND/CANADA. In landmark developments for their respective tourism and travel retail sectors, New Zealand and Canada today announced the planned introduction of offshore duty-free shopping, similar to Hainan in China; Okinawa, Japan; and Jeju, South Korea.
The related tender opportunities are expected to attract widespread interest from some of the world’s leading travel retailers.
In a joint statement, the two governments said they had worked closely on the initiatives after an extensive fact-finding tour of the three Asian locations in late 2023.
New Zealand Minister of Tourism Matt Doocey said the choice of offshore duty-free location had been a close call between Stewart Island (also known as Rakiura in the Māori language), 30km offshore from the country’s South Island, and the more balmy Waiheke Island near Auckland in the North Island.
“Ultimately we chose the Stewart Island/Rakiura option, for the tremendous benefits it offers in terms of regional economic impact and employment opportunities,” Doocey said. “The location will also benefit from a large available talent pool in the South Island, widely recognised as the intellectual capital of New Zealand.”
As with its Asian predecessors, the planned Stewart Island/Rakiura store – which will involve a long-term, 20-year concession due to be tendered in coming months* – will serve domestic travellers who can visit the island by ferry from Bluff, long renowned for its bustling night life, vibrant cultural scene and nearby aluminium smelter. Alternatively they can fly in from Invercargill Airport or swim easily across the year-round warm waters of Foveaux Strait, Doocey noted.
Kiwi duty-free shoppers will benefit from a generous NZ$3,000 (US$1,795) duty-free value allowance; 4.5 litres of wine or beer; three 1.125 litre bottles of spirits (or a 3.375 flagon of local Morepork Craft Gin); and a half dozen complimentary Bluff oysters.
Canada’s Minister of Tourism Soraya Martinez Ferrada said her country’s ultimate choice of offshore duty-free island had also been a split decision between two commendable candidates.
The options, she said, were the already popular tourist destination of Vancouver Island off the coast of British Columbia and the ultimate winner, Moodie Island, a small, offshore land mass within the Nunavut territory.
While currently uninhabited, Moodie Island – like Hainan – offers a pristine natural environment, bird and whale watching, and day tours to the Arctic Circle, Ferrada said.
A final decision on the duty-free allowance will be made soon, she added. Ferrada pledged a focus on local and national products such as Canada Goose (the outerwear brand not the bird), Maple Syrup, Icewine, Chocolate Moose, Lush Cosmetics, Nanaimo bars and – in a perhaps unfortunate reminder of the local controversy over seal-hunting – Canadian Club.
Localised duty-free exclusives from international brands, including Johnnie Walker Musher, real Penguin chocolate bars, Huskie’s Kisses, Calgary Milk Tray, Penderyn whisky distilled from whales, and DENIZEN Destination bracelets engraved with the shape of the island, will also be key to the ultimate offer, the Minister said.
Government spokesman for the territory Archie Pelago welcomed the government’s decision during a sparcely attended press conference on Moodie Island, saying it would provide a tremendous economic stimulus to the island and region. “While the weather sucks, it sure as heck is peaceful out here so for anyone wanting to be free of duty this is the place to go.
“All we need now is for an international travel retail title to pick up on the story to drive interest among bidders. Know anyone?” he asked. ✈
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