Canadian airports restate call for arrivals duty-free

The Canadian Airports Council (CAC) has repeated its call for the introduction of arrivals duty-free legislation ahead of the country’s budget. In a plea to the ministry of finance, the association highlighted the favourable economic impact of the move—including 400 new jobs, C$7.2m in additional tax revenue and the repatriation of C$61m in annual sales spent by Canadians travelling abroad.

The government has frequently ignored calls for arrivals legislation in previous years, including ones ahead of the 2005 and 2006 budgets. But with the spread of duty-paid arrivals shops at several airport locations, industry observers believe that airports and retailers have proved that arrivals shopping can be monitored and managed properly, and are more confident of a positive outcome this time.

 

CAC president and CEO Jim Facette said: “Arrivals duty-free represents a unique win-win opportunity for the federal government to help Canadian duty-free operators and their airport hosts while increasing federal tax revenue.”

 

CAC estimated that airport duty-free sales in Canada represent C$174m annually. The association is also lobbying for the elimination of airport rent, which costs Canadian airports about C$300m a year.