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August 16, 2006

Aruban economy affected again: Duty Free Shops Hurt by Last Weeks Terrorism Plot

Posted in: Aruba,Business,Economy,Homeland Security,Travel,War on Terror

Aruban economy affected by war on terror.   Duty free

Since last weeks terrorism plot was foiled in London, the Transportation Security Administration implemented new guidelines not allowing liquids or gels to be brought aboard airlines. One of the industries affected by these new guidelines were “Duty Free” shops. Many people leaving Aruba take advantage of the duty free purchases prior to departure.

Today, the TSA has revised their polices to allow perfumes and liquor to be allowed on planes only under certain circumstances.

Sales of liquor and perfumes at duty-free airport stores resumed Tuesday after federal officials amended a ban on liquids allowed aboard aircraft.

Under new rules, the Transportation Security Administration said passengers will be allowed to take duty-free items on board if they are delivered directly onto the aircraft by store workers.

 

The amount of business that is done through “Duty Free” shops is tremendous and was greatly affected by the recent ban of liquids.

The precautionary ban instantly eliminated the market for duty-free staples like wine, liquor and perfumes, which represent more than 50 percent of sales in the $27 billion global duty-free business. Unlike in the U.S., the ban remains in place at most airports throughout the United Kingdom.

However, even though there has been a partial change in the allowing of “Duty Free” liquids on airplanes there are still restrictions in place when it comes to non-direct flights where one must use a connecting flight.

While the TSA said it would allow liquor and perfume sold from duty-free stores on board, it was not changing its rules to allow passengers to carry the products onto a connecting flight. “Passengers making connections from international to domestic flights must transfer the items to their checked baggage before boarding their [domestic] flight,” the TSA said.

However, Aruba “Duty Free” shops are still affected and do not fall under the exceptions. Thus another segment of their economy takes a hit.

However, passengers who clear customs before departure from some international locations, such as from many Canadian cities, the Bahamas, Bermuda and Aruba, will not be permitted to carry liquor and perfumes onto their flights, the federal agency said.

(Chicago Tribune)


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