Joint retailer action to tackle passport problem

Gavin Lipsith

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Retailers on the north and south sides of the US-Canada border are to unite against the threat posed by proposed US passport laws

Canadian and US border operators are to discuss a joint marketing initiative aimed at offsetting loss of business that could be caused by new passport regulations from the US Department of Homeland Security.

As reported in DFNI November 15, new laws could mean that a passport is required by anyone crossing in to or out of the US by a land border. Although the proposal will only come into effect in 2007, or 2008 if an extension is granted, operators reported that news of the move was already having an affect on passenger numbers at the border—at present only 40% of Canadians and 23% of US citizens have a passport.

Duty Free Americas director of operations northern border Dan Slefinger suggested that retailers try to encourage people to buy passports by recouping the cost in discount coupons, valid at all stores along the border. The Frontier Duty Free Association has already distributed marketing material to be displayed in store and on company websites, informing travellers of the new legislation and emphasising that the rules have not yet taken effect.

1000 Islands Tax & Duty Free Store president Heather Howard called the threat "the most serious since I've been in the industry", while DFS Ventures' Michael Resch warned that retailers could lose up to 40% of their business by 2008.