With a global recession, September 11 and the Iraq war, the past two years in Latin America have been tough?and the travel-retail industry has been hit hard. But now, as economies in the region begin to register growth again, the leading travel retailers are showing signs of optimism. John Gallagher reports.

South American duty-free association ASUTIL aims to become much more proactive in its dealings with its members and its counterparts worldwide, according to president Samuel Kauffmann. Here he outlines his vision for the association as the business in the region emerges from two years of turmoil. As Brasif vice-president business development, he says the region?s largest travel retailer will continue to invest heavily in its airport operations.

A relative newcomer to the duty-free arena, Paraguay?s Bright Star has overcome initial difficulties to establish itself as an energetic contender for South American travellers? dollars. John Gallagher reports on one of the region?s up-and-coming operators.

Founded in 1942, London Supply is one of the longest established and best-known duty-free retailers in Latin America. But like most companies in the region it has suffered from harsh trading conditions in the past decade. Now, though, the company believes recovery is in sight, as John Gallagher reports.

If the past two years have been difficult for most travel-related businesses in the Mercosur area, they have been especially tough for Argentina?s principal duty-free operator. John Gallagher speaks to InterBaires ceo Enrique Urioste about the challenges of the past year and the opportunities ahead.

With legal actions threatening its operations and passenger figures not yet returning to steady growth, Argentinian airport operator Aeropuertos Argentina 2000 is hoping that the year ahead will bring a return to stability.

As DFNI goes to press, the Uruguayan government is due to retender the management contract at Montevideo Carrasco International. But after a series of failed attempts, will it finally succeed in its bid to privatise the airport? John Gallagher reports.

Aelia is adopting a new approach to beauty with The Purple Lounge, a boutique selling niche cosmetics brands designed to complement the retailer?s traditional offer at Paris Charles de Gaulle airport terminal 2E. Jane Labous talks to Aelia perfumes and cosmetics manager Beatrice Delorme.

For a sector driven by holiday travel, suncare should be a prime category. As awareness of the dangers of the sun increases the suncare market is growing. But what about travel-retail? Jane Labous asks brand owners and their retail partners whether the suncare market is growing in the channel, and if so, what is fuelling such growth.

Jürgen and Ulrike Klein, founders of fast-growing beauty brand Jurlique, pride themselves on the healthy, organic products that are making their mark not just in Australia, but internationally too. But their passion for home-grown products, horticulture and eastern philosophy belie a determination to make this family-run company one of the biggest names in global skincare, as Jane Labous discovers.

According to analyst Generation, the Nordic region accounts for 9% of global duty-free sales, a remarkable statistic given the region?s relatively small population. Yet retailers and suppliers point to an industry in crisis, hampered by low penetration rates and poor consumer perception. John Rimmer attended the recent Nordic Travel Retail Seminar, where debate was lively and often controversial.

Revlon names Asian regional director, ASUR appoints commercial director, new exhibitors flock to Cannes plus...

UAE. Sales at Abu Dhabi Duty Free surged by almost 20% in July compared with the same month in 2002, putting the operator more than 13% ahead of budget.

CAYMAN ISLANDS. Tortuga Rum Co has moved beyond its traditional rum and rum cake duty-free business to open Grand Cayman?s first Bijoux Terner outlet.

By John Gallagher and John RimmerURUGUAY. Cerealsur, a consortium headed by Argentinian airport authority Aeropuertos Argentina 2000 (AA2000), is to be the new operator of Montevideo?s Carrasco International airport.

ARGENTINA. The country?s two leading duty-free operators, InterBaires and London Supply, are posting strong sales figures as they emerge from last year?s disastrous downturn in business.

SINGAPORE. The Civil Aviation Authority of Singapore has decided not to re-tender Changi airport?s liquor and tobacco duty-free concession, instead giving a two-year extension to the incumbent DFS Singapore.

This week?s ASUTIL Conference in Cancún, Mexico, takes place at a critical time for the Latin American duty-free industry.

KUWAIT. Kuwait Duty Free, operated by Habchi & Chalhoub, has benefited from a surge in summer travel and rapidly improving consumer confidence to post consecutive record-breaking months for sales turnover in June and July.

By Dermot DavittPORTUGAL. As exclusively revealed in DFNI eXTRA on August 13, Lojas Francas de Portugal has gained extensions to its airport concessions until December 31 2009 under a new deal with airport authority ANA Aeroportos de Portugal.

FINLAND. Leading ferry operator Silja Line has begun a new service, linking Helsinki with St Petersburg.

By Jonathan BrownDENMARK. A rise in retail sales has helped boost Copenhagen Airports? profits for the first half of 2003.

Cost-cutting boosts Hellenic; EverRich wins Taipei T1

FIJI. The recent upgrade of facilities at Nadi International airport marks the beginning of a new round of investment in its duty-free business by operator Tappoo Group.

CHINA. With the Olympics less than five years away, Beijing Capital International Airport has not yet decided whether to build a completely new airport or add an extra terminal to the existing facility.

AUSTRIA. A new Travel Value arrivals shop is to open this month at Salzburg airport, offering fragrances, liquor and wines.

URUGUAY. Retailers are targeting expansion in a new duty-free zone that is set to rival those already established in the border locations of Rivera and Chuy.

HAWAII. DFS Group?s contract at Hawaii?s airports and downtown duty-free stores is to be retendered this month after it reached an agreement with the State of Hawaii Department of Transportation in the long-running dispute over an estimated $49m in back rent owed by the operator.

By Anna FentonHONG KONG. Hong Kong International airport (HKIA) liquor and tobacco operator Sky Connection will move both of its main outlets to new sites in the expanded East Hall in September.

TUNISIA. Tunisair plans to outsource its onboard duty-free programme later this year.

HONG KONG. Nuance-Watson (HK) opened the first of its new stores at Hong Kong International Airport on August 4. The Plaza and Sound & Vision outlets form part of the general merchandise and audio-visual concessions won by Nuance-Watson earlier this year.

CANADA. Douglas Crossing Duty Free president Michael Beler has unveiled plans to assemble a luxury offer to rival any border store when the company opens its permanent building on the British Columbia?Washington frontier next year.

UAE. Dubai Duty Free has claimed a new monthly sales record, posting revenue of Dh114.7m ($31.2m) in July?or over $1m a day.

SCANDINAVIA. The regional travel-retail industry has appointed a working group to deal with what it calls the ?image crisis? facing the business in the region.

US. Duty Free Americas has begun operating at Washington Dulles International airport after former incumbent The Nuance Group failed in its bid to overturn the result of the recent duty-free tender.

CHINA. The first phase of renovations at China?s biggest duty-free border shop are being completed in time to capitalise on the surge in first-time travellers from the mainland.

Liquor supplier Kyndal Spirits, formed after a £200m ($322m) management buyout of Jim Beam Brands? UK-based business in October 2001, is to change its name as part of a ?thorough restructuring programme?.

By John RimmerDuty-free operators in Denmark are preparing for a sharp drop in margins on liquor when the government slashes duties on October 1.

Port brand JH Andresen is to launch a range of new gift packs exclusive to travel-retail this autumn in a bid to boost the supplier?s profile in the channel.

Scotch whisky supplier Glenmorangie has created a wood finish that will initially be available only in duty-free.

By Jonathan BrownSwitzerland-based cigar supplier Villiger Cigars has named retailer Alfa Brands Corp as its exclusive agent for duty-free and travel-retail in North America. Villiger cigars are sold in more than 90 countries.

RJ Reynolds Tobacco has warned of possible job cuts as a result of a sharp decline in quarterly sales.

Following its recent purchase of Italian state-owned tobacco supplier Ente Tabacchi Italiani, British-American Tobacco has denied reports that it has bid £2bn ($3.2bn) for Turkey?s state-owned tobacco manufacturer Tekel.

Habanos has launched a robusto cigars collection featuring five of its best-known brands.

Scental?s Giorgio Armani brand has created a pair of men?s and women?s fragrances, now being launched in European travel markets.

By Jane LabousPaco Rabanne is underlining its commitment to the women?s market with the launch of a strikingly packaged new fragrance, Paco Rabanne Pour Elle.

Clinique is to launch a new fragrance to fill a gap which it feels is left by existing offers Clinique Happy, Clinique Happy Heart and Clinique Aromatics.

Christian Dior has launched its fifth limited-edition travel-retail exclusive fragrance, Chris 1947.

Perfumes Loewe has created a 30ml spray design for some of its bestselling fragrances, including Aire Loewe, Esencia Loewe, Gala de Dia and Esencia Femme.

Pierre Cardin Beauté has extended its make-up line with new products for eyes and lips. At the same time the company is introducing new packaging for its entire make-up range.

Guerlain has extended its Substantific skincare line, created in 2001, with two new products claimed to offer improved skin results.

Pupa?s autumn make-up collection adopts a poetic theme, based around warm tones and autumn shades.

Lancôme has created a new bodycare range called Caresse. Now being launched in European travel-retail and available in the Americas from November, the line comprises three products.

Biotherm plans to make inroads into the teenage and young adult market with the introduction of a range of products for young skin.

Estée Lauder?s new Pure Color Makeup Trio is exclusive to Asian travel-retail, and features the best-selling shades in the company?s range for lips and nails.

Yves Saint Laurent?s Roger & Gallet brand is introducing exclusive travel-retail sets for the first time.

Nestlé International Travel Retail (NITR) will make Cailler the focus of its Cannes presentation next month.

Guylian has adapted its famous Seashell chocolates to create a 40g bar that has a seashell on each of its four segments.

Neuhaus will introduce four new Connoisseur Collections after Christmas, all with new packaging focused on photography that highlights the products.

DFNI Excusive by Michael EatonThe Nuance Group is to evaluate a series of pricing experiments it conducted at Amsterdam Schiphol airport this summer, which were prompted by an 8% dip in confectionery sales during the first half of 2003.

Masterfoods International Travel Retail (MITR) is test marketing a new biscuit called Twixels in selected locations, including Amsterdam Schiphol airport.

By Lorna StricklandBraun will be showcasing three ranges for travel-retail at next month?s TFWA World Exhibition in Cannes: shavers, watches and toothbrushes.

Leading gifts supplier Russ Berrie has developed a Christmas tree display unit for the festive season.

UK-based agent to the travel-retail market Pinemesh Management is to concentrate on core brands in the gift and toy sector plus a limited range in the sunglasses market, following the termination of its contract to handle RayBan Elite sunglasses.

UK gifts supplier Halcyon Days has announced the launch of its 2003 Christmas collection.

Swatch has launched new autumn/winter collections for its Irony watches and Bijoux jewellery ranges.

By Jonathan BrownAustrian crystal supplier Swarovski has again been active in the travel-retail arena. The company has refurbished its shop at Dubai International airport and opened a new store at Rome Fiumicino.

Canada?s Cosmoda Corp has introduced the new Fusion range of digital timepieces.

Building on its retail success at UK airports, The Pen Shop has expanded its own-brand collection of writing instruments and clocks.

By Kevin RozarioFrench luxury goods and leathergoods house Hermès is to extend its in-house travel-retail business from wholesale to include direct retailing, and is to operate its new store at Hong Kong International airport alone.

Italian sports car and Formula One brand Ferrari is actively seeking travel-retail sites for smaller versions of its downtown lifestyle store concept.

The latest figures from Swedish analyst Generation show that the three fashion categories as defined by DFNI (fashion apparel and accessories, leathergoods and sunglasses) increased their combined market share in 2002 bringing their total share of the $20bn travel retail business to 13.9%, a rise of 2.2%.

French leathergoods house Texier has opted for a safari and savannah look for the winter season in two of its three latest collections.