Inflight business shrugs currency troubles at Tourvest

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Tourvest Duty Free's inflight duty-free business has performed well, despite the growing strength of the Rand hitting tourist levels

Tourvest Duty Free's inflight duty-free business has performed well, despite the growing strength of the Rand hitting tourist levels.

The company said that with the addition of Virgin Atlantic Airways' worldwide inflight concession from May 1 2004 the business could grow as a ?global player? in the inflight retail market. Tourvest, which already operates the inflight duty-free contract for South African Airways, won Virgin's two-year inflight concession from Aeroboutique last year.

The rise of the South African Rand against the US dollar has caused a 30% drop in operating income to R75m ($10.8m) at local tourism company and parent of duty-free operator Tourvest. 

The news comes as the company revealed its interim results for the six months ended December 25 2003. The company said the average Rand/US dollar rate has risen by 29% over the period.

The firm said the currency situation had deterred some tourists from visiting the country and downgraded their spending levels. Passenger arrivals in August and September were lower than the previous year?the first time since November 2001 that international arrival numbers have decreased.