Libyan business expands as Sabratha plans new border and port operations – 30/06/05

LIBYA. Tripoli-based Sabratha Duty Free Services, the country’s first duty free retailer, is implementing three new projects as trade and travel grow between Libya and Egypt.

“As trade and travel have eased between Libya and Europe, we are witnessing sales growth,” said Stefan Von Groningen of Hamburg-based Gebr Heinemann, partners in the Libyan joint venture company. “We have just opened an outlet at the border in the east between Egypt and Libya, near the historic town of Tobruk. On the other side of the border, there are Egyptian duty free shops run by EFSCO [Egypt Free Shops Company], near the Egyptian town of Marsa Matrouh.

“Our new outlet offers well-priced, mid-market products – tobacco, confectionery, and several pharmacy type toiletries and fragrances, such as Puma, Adidas, and a similar level of accessories, sunglasses etc. The offers are in line with the passenger profile of the majority crossing the border. Generally these are seasonal teachers, technicians, workers. The border traffic is on the increase and those who earn in the neighbouring country have disposable income when returning home. ”

Von Groningen added: “Our project to have an operational duty free outlet at Tripoli harbour has still not fully materialised, although we have again lodged our proposal documents with the port authorities. We see this location as being potentially lucrative, as cruise ships dock here in preference to Tunisian ports. This year about 150 ships are expected.

“Libya has several historic Roman sites, such as Sabratha and Leptis Magna. Tunisian tourists are growing in number as they cross the western border quite frequently. So the third project we are now working on is a border shop between Tunisia and Libya. The problem facing us here is that there is no “˜No man’s land’ at this border crossing, which makes our duty free site allocation rather tricky, although we have already entered into discussion with various authorities. We intend to make this outlet more upmarket as compared with the one on the Libyan-Egyptian border.”

Soraiya Qadir writes: Well before WW2, Libya, with its spectacular historic sites such as Leptis Magna, Sabratha and Cyrene, was a holiday destination for Europeans. As Libya has recently opened its doors to business, tourism is on the rise. The Libyan government encourages selective eco-tourism, which includes visits to its archaeological and cultural sites and the old oasis desert towns. Libya attracts about one million visitors annually, mainly from neighbouring Maghreb countries and the rest of the Middle East. Presently the government is seeking investors and developers to build 24,000 hotel rooms in order to attract 650,000 tourists by 2015.

*For the full version of this interview see a special report in the next issue of Travel Retail & Duty Free Markets – Middle East & Africa, published by Soraiya Qadir.

The Moodie Report works closely with Soraiya Qadir and Travel Retail & Duty Free Markets – Middle East & Africa on an information-sharing basis. To subscribe to her magazine or for editorial and advertising details e-mail Trdfmea@aol.com

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