Guide to Duty-Free Shopping While Traveling

After exciting long-distance trips, your travel essentials on the way back surely cannot be without some souvenirs.

Guide to Duty-Free Shopping While Traveling

The Boom of Duty-Free Spaces

Air transportation has developed everywhere. The middle class is increasing in many countries, and traveling by sea is more common. It's no surprise to see duty-free shops popping up not only in airports, international ports, and border mall centers but also in the downtown areas of major cities, which are still frequent destinations for many international travelers. While many understand that goods sold in duty-free spaces are not necessarily cheaper than those sold in the city.

On December 30, 2015, a duty-free retail space officially opened its doors to visitors in Sihanoukville. This 450 m² duty-free shop is the second facility of China Duty Free Group, a subsidiary of China International Travel Service Group Corporation. The first shop has been operating in Angkor since 2014, and the third shop is scheduled to open in the capital city of Phnom Penh in August.

Vietnamese travelers visiting Seoul, South Korea, will definitely have the chance to explore the vast duty-free space of Shilla IPark Duty Free, valued at 316 million USD (a joint venture between Hotel Shilla and Hyundai Development) inaugurated on December 24, 2015. Although initially only 50% of the total area of 30,400m² of this space is dedicated to display and sales, it's enough for shoppers to indulge, even max out their credit cards.

With over 400 brands available duty-free for tourists right in the heart of Seoul's capital. When the remaining 50% of the retail space becomes operational from March 2016, the total number of brands will reach 600. By then, the parking lots around this space can accommodate up to 400 large buses carrying tour groups to shop. The projected revenue for 2016 is expected to reach 578 million USD.

Since September 2015, in the Pier B area of T1 Terminal, Kingsford Smith International Airport, Sydney, Australia, the Heinemann Duty Free store spanning over 5,700 m² has opened to serve passengers. And when all expansion works are completed by mid-2016, it will be the world's largest duty-free retail space for departing passengers. Heinemann operators boast that this will be a complete model of retail in the modern 21st-century travel era. So, if you get the chance to depart from this terminal, remember to experience it.

Also contributing to the duty-free revenue are international flights of many airlines. Korean Air reported that by the end of 2015, they might have sold duty-free items worth 177.4 million USD. The airline lists the most sold categories in flights as cosmetics (36.6%), spirits (28.3%), nutritional supplements (9.9%), fashion items (6.9%), chocolates (4.3%), perfumes (4%)...

It can be simply stated that duty-free items sold in airports, international ports must be cheaper than those sold in the city because they are exempt from two types of taxes. These include import duties (if the product is manufactured in country A but sold in the duty-free space of country B) and value-added tax. Therefore, when traveling to Europe, opting to buy duty-free items allows you to be exempt from value-added tax (which some places call sales tax) because 'duty-free shops in airports, international ports are all tax-free shops.' Depending on whether you are traveling in France, Germany, Spain, Switzerland, Italy..., these tax exemptions help you save from 5-25%.

Some things to keep in mind

As a frequent business traveler navigating through various international airports, it's essential to note down a few things to make purchases swiftly without hesitation or price comparisons.

- Incheon International Airport, Seoul, has been voted the best duty-free shopping airport by Business Traveller magazine in the Asia-Pacific region for 5 consecutive years (from 2011-2015). Frontier magazine (UK) has also honored this airport in this category for three consecutive years.

- Traveling to South Korea and shopping duty-free at the airport has become a must-do for many tourists. In 2014, approximately 45 million passengers spent a whopping $2 billion solely at Incheon Airport, setting a world record. Everything from international deluxe fashion items (like Louis Vuitton, Bottega Veneta, Chanel, Prada, Gucci...) to Korean cosmetics (AmorePacific, Missha, Etude House...), electronics, and Korean food is sold in the expansive 1.19 km² duty-free area at this airport.

Incheon Airport's duty-free shops attract not only for the variety of items but also for their affordability (some are 60-70% cheaper than street prices), elegant sales approaches, and support from modern electronic technologies. An important factor contributing to the success of duty-free at this airport is the competition between two operators, Shilla Duty Free and Lotte Duty Free.

- Notably, Dubai Duty Free has been honored 9 times in a row by Global Traveler magazine (USA) as the best airport duty-free shop. Furthermore, Dubai Duty Free has also been recognized by Frontier magazine for the best retail marketing campaign in 2015.

- Annually, around mid-December, as part of its birthday celebration, Dubai International Airport offers a 25% discount on many duty-free items for arriving, transiting, and departing passengers. The grand discount program typically lasts for 3 days/nights. Just strolling around the duty-free space of this airport can be exhausting as it is 1.5 times larger than the total area of St. Peter's Basilica in Rome.

- Traveling entrepreneurs passing through Terminal 3 of Changi International Airport now have countless choices among over 440 wine and spirit labels in a beautifully expansive space spanning 2 floors, operated by DFS Group. There's also a Raffles Hotel bar ready to serve travelers the famous Singapore Sling cocktail, the lion city's signature drink.

- Are you a fan of Champagne tasting and collecting? Then make sure to frequent Terminal 2E of Charles de Gaulle International Airport, Paris. Les Caves Particulières showcases renowned Champagne labels. After sampling a few glasses of premium Champagne, you'll undoubtedly make a purchase decision. Les Caves Particulières is adjacent to the wine section of the Buy Paris duty-free store.

According to Doanh Nhân Sài Gòn

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Reference: Travel guide Mytour