Golf, rugby and cricket once again played their part in kick-starting the Asia Pacific show, with the added attraction this year of a Tai-Chi class on the Monday morning.

Even after post-Cold War cuts, the US military retail system is the 12th largest retailer in the world, with over 12m customers generating over $7bn in sales a year, of which $1.2bn is classified as traditional duty- and tax-free. Online editor Trevor Lloyd-Jones gets the measure of the vast Army and Air Force Exchange Service (AAFES) buying organisation.

From the Balkans to Afghanistan post-September 11, international military activity has moved quickly and often unexpectedly from place to place in recent years. This provides military retailers with new opportunities. But the industry must address some fundamental issues if it is to take advantage of the changing landscape. Gavin Lipsith investigates.

?Take yourself forward one year from this week, when the World Health Organization will vote on the future of duty-free tobacco.? This was the warning from International Travel Retail Confederation director-general Keith Spinks, speaking at last month?s TFWA Asia Pacific meeting on tobacco in Singapore.

Austria has more to offer than Wiener schnitzel and Amadeus Mozart souvenirs. In the crowded world of jewellery, Austrian company Michaela Frey?now using a new logo and brand name M Frey Wille?stands out for its unusual artist-inspired designs. And after 50 years in business, the company intends to drive growth with new stores and brand diversification. Isabelle Caprano speaks to the man behind the brand.

When it comes to looking for the next season?s jewellery collections, does it pay to visit the High Street for inspiration? Do travel retailers follow the trends on the domestic markets when deciding what should be offered to their customers? In fact, do the latest jewellery and watch trends have any place in airport stores and onboard airlines? Isabelle Caprano reports on what works and what?s hot in the world of travel-retail.

Kit Heath is a company to be reckoned with. Following the designer?s tremendous success in the UK jewellery market in the late 1990s, Alpha Retail saw its potential and quickly added the brand to its travel-retail assortment at its leading airport locations in the UK.

Nuance-Watson (HK) landed the top prize in the annual Raven Fox Awards for Travel-Retail Excellence in Asia/Pacific, on an evening of high drama in Singapore on May 22. The company scooped three other top awards, while The Nuance Group (Asia/Pacific) landed Best Liquor Travel Retailer, making it an exceptional night for Nuance. Among the other big winners were EverRich Duty Free Shop Corp, Civil Aviation Authority of Singapore and Dubai Duty Free.

British-American Tobacco International director and the company?s long-time Asia/Pacific duty-free chief David Tomlin was rewarded for 20 years of building the BAT brand in the region at the Raven Fox Awards ceremony in Singapore on May 22.

As the precious metal is given a new image, the gold jewellery sector in travel-retail is being forced to adapt to changing consumer tastes and today there is a greater emphasis on fashionable designs. But provided the industry continues to innovate it should enjoy a bright future. Isabelle Caprano reports.

It is unfair to say that the writing instruments category lacks innovation and is going nowhere. In fact, sales rose by 5.6% in 2000 to reach $277.8m; and the sector accounts for a presentable 3.7% of all luxury goods sales in travel-retail. With many brands offering items under $20, the sector can be a volume business too, but retailers are urging suppliers to concentrate on the higher price points and to attract the long-forgotten female consumer. Isabelle Caprano reports.

The Queen?s Golden Jubilee celebrations are upon us as this issue of DFNI goes to press. But it?s not only Britain?s Queen who is raising a glass to an important anniversary this month: it?s also 25 years since a new line of products changed the way Scotch whisky was sold in duty-free.

This year?s TFWA Asia Pacific exhibition began a new chapter in the business of trade shows in the region, with the announcement of a new-look event for 2003. DFNI reports on some of the week?s activities and looks ahead to Gate One next year.

CHINA. After 576 delegates participated in the first-ever China Travel Retail Summit in Beijing on May 16?17, a second event is planned for next year. Organised by China Duty Free Group (CDFG) and China Power Duty Free Group (CPDFG), with programme development and moderation by Moodie International, the Summit will be repeated next year in either Beijing or Shanghai. And tentative plans are already being made for 2004, at a location to be announced.

INTERNATIONAL. The future of the $2.3bn duty-free tobacco business could be decided in the next few months, as campaigners urge a final push from retailers and stakeholders across all categories to save the business. The World Health Organization (WHO) proposes to ban duty-free tobacco sales through its Framework Convention on Tobacco Control (FCTC). Speaking at a special forum on the issue in Singapore on May 23, International Travel Retail Confederation (ITRC) director-general Keith Spinks said: ?We?ve got one last chance to resolve this before the next round of WHO meetings in October.?

FRANCE/MOROCCO. Aeroboutique Inflight Retail (AIR) and Inflight Sales Group (ISG) have joined forces to operate Royal Air Maroc?s onboard retail programme. If successful, the alliance, which operates under the name Aeroboutique Sales Group, could pave the way for further collaboration between the concessionaires. Neither company would be drawn on other potential contracts at this stage.

US. Both BAA and Duty Free Americas (DFA), which bought BAA?s US duty-free business, have vowed to defend a court action taken against them last month. The action stems from the sale of World Duty Free Americas (WDFA) in September 2001.

ASIA/PACIFIC. Nuance-Watson (HK) landed four prizes, including the top award of Asia Pacific Travel Retailer of the Year, at the fifth annual Raven Fox Awards for Travel-Retail Excellence in Asia/Pacific in Singapore on May 22.

VIETNAM. Operator and concessionaire Asia Wave International has told DFNI that renovations at Vietnam?s key duty-free outlet at Ho Chi Minh City airport are due for completion in December 2002. The plans were drawn up in response to the 10% increase in tourists entering the city in the first quarter of 2002. According to the country?s Department of Tourism, arrivals by air were up 12%.

MAURITIUS. Air Mauritius has unveiled a new brochure in a move to relaunch duty-free sales onboard. The carrier has struggled for over two years following the closure of World Duty Free Inflight (WDFI).

UAE. Tax Free World Association has responded vigorously to the planned Middle East Exclusive exhibition, to be held in Dubai in December 2003 (DFNI 9), repeating its assertion that there is no need for a further industry exhibition. The event is being organised by Channels Exhibitions.

INDIA. The Indian Duty-Free Association held its fourth annual duty-free seminar in Cochin on May 12?13 and pledged to become more active in lobbying government on industry issues. It also promised to step up efforts to increase its membership.

Contrary to its initial decision made after jointly buying Seagram?s liquor brands with Diageo, Pernod Ricard is to acquire the Scotch whisky brand Passport.

Allied Domecq is preparing a fresh travel-retail strategy for Malibu after its acquisition of the coconut rum from Diageo was completed and approved on May 22.

Cognac supplier A de Fussigny unveiled its latest range of items at this year?s TFWA Asia Pacific show, taking inspiration from the fragrance industry.

The Nuance Group is to extend its successful Australian Wine Growers concept with the opening of its biggest airport wine store yet.

The Chinese tobacco industry is being encouraged to develop internationally-recognised cigarette brands to compete with foreign products.

The tobacco market will continue to grow for at least five years, despite increasing pressure from governments and anti-tobacco organisations, according to a recent survey.

Unilever Cosmetics International?s (UCI) new Crave fragrance by Calvin Klein will be its biggest launch since cK One, the company said at its unveiling at TFWA Asia Pacific in Singapore.

The Alpha Group has been liaising with suppliers in an initiative designed to energise its duty-free fragrances and cosmetics business in Sri Lanka?the company?s fragrances business in the region is worth about $2.5m a year.

Jurlique, the Australian brand whose natural beauty products contain plant and herbal extracts grown by founders Dr Jurgen Klein and his wife Ulrike, plans to launch a new range of premium products in about 18 months.

Masterfoods International Travel Retail (MITR) has started shipping orders for the long-awaited M&M?s Memo Recorder for which it has gained global listings.

Paton?s Macadamia Plantations has claimed that holographic technology used in its point-of-sale posters has helped increase sales by up to 250% at some airport locations.

Italian luxury chocolates and novelties specialist Caffarel introduced its Italy?s Treasures range of Napolitains to a wider audience at the TFWA Asia Pacific show in Singapore last month after launching it in its domestic travel-retail market earlier in the year.

Manchester airport aims to capitalise on this Summer?s two big sporting events?the FIFA World Cup and the Commonwealth Games?with a tailored programme of retail activities, according to the airport authority.

French specialist jewellery and watches retailer Royal Quartz has won a five-year contract to operate an Ecriture & Cie outlet at Paris Orly airport.

AT Cross has launched the Micropen, a versatile writing instrument that combines a stylus for Personal Digital Assistants (PDAs) with a conventional ballpoint pen.