Dubrovnik forecasts 10% growth spurt in 2007

Dubrovnik airport has predicted a 10% growth spurt in passenger numbers in 2007, which it hopes will equate to a similar rise in duty-free sales. Dubrovnik is preparing to relocate its current duty-free operation of about 300sq m (3,550sq ft) while terminal renovations are completed. Its new temporary store, located in the domestic area, will open this year adding about an extra 100sq m (4,304sq ft) of space to the airport authority’s charge, which it will utilise with better product presentation, promotions and new furniture.

Manager trade department Niksa Milanovic is sure the nation’s status as a burgeoning tourist destination will boast its duty-free fortunes. He said: “Dubrovnik is a growing destination for tourism in Croatia and its 32,000 hotels beds could be expanded to 55,000 after refurbishment, and will be supported with the opening of two or three new hotels this year.”

However, the new permanent store scheduled to open in the next few years, will double its current duty-free retail space to 600sq m (6,456sq ft) and Milanovic is excited about the outlet’s future potential. He explained: “The store will be self-service and divided according to core categories, where fragrances and cosmetics and liquor and cigarettes will be key. It will have a strong visual impact and feature a very contemporary design, which we hope will be as modern as some outlets in Germany.”

Dubrovnik’s total duty-free turnover was up by 2.64% to €7.18m ($9.41) year-on-year and international departing passenger levels increased by 3.58% to about 451,000. Milanovic concluded: “We are satisfied with the results but expected more. Passenger numbers are improving gradually but we experienced a 1% drop in average spend per passenger.” He said sales had been affected by some confusion over the aviation rules on liquids and competition from stores on the border with Montenegro.

Passengers from France, the UK, Germany, Ireland, Norway, Belgium, Spain, Italy, Russia and Sweden account for the key nationalities to visit the airport. Fragrances and cosmetics accounted for the biggest percentage of sales last year.