Canadian airport sales drop 5% in 2003

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C$150m ($112.6m) sales are encouraging after one of the toughest years on record for Canadian tourism

Duty-free sales at Canadian airports slipped 5% in 2003 to just under C$150m ($112.6m). Sales were dominated by fragrances and cosmetics (32.78% of total sales), liquor (27.97%) and tobacco (19.8%), with impressive growth in sales of domestic beer (up 90% to almost C$250,000/$187,000) and imported fashion (up 88% to C$2.70m/$2.03m).

The figures are remarkably buoyant considering the trials of 2003?early in the year panic over SARS cases slowed international traffic to Toronto and Ontario, and the strength of the Canadian dollar has also served to dissuade travellers. Only domestic jewellery and imported souvenirs incurred significant sales losses.

The Nuance Group ceo North America Roger Dunbar told TRW that the company is now trading at pre-SARS levels at its Canadian airports, which include Toronto Lester B Pearson, Vancouver International and Calgary. "Effectively, we've lost a year," said Dunbar.

Earlier in the year Canadian border stores reported their worst results since 1999.

See DFNI March 1 for more comment and analysis.