Terrorist threat set to stilt sales at Transit

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Travellers' fears over terrorism are likely to result in flat or marginal sales growth, Transit Duty Free has revealed, although plans for a new airport in Tanzania could boost passenger numbers

Transit Duty Free Shop, which operates two stores in the Uganda and two in Tanzania totalling between 140sq m and 185sq m (1,500sq ft and 2,000 sq ft), predicts it will achieve only marginal sales growth in 2004 as the ongoing threat of terrorism is still keeping passenger levels low.

?In the current economical climate we are likely to see a small to flat increase for 2004,? said Transit director Salim Ladak. ?We also saw flat sales in 2003. The costs of products have gone up and in some cases we have absorbed the additional cost. We are sure if the world situation wasn't that people were so scared of terrorism then passenger levels would increase.?

He said fragrance sales are faring well with Christian Dior and YSL among the most popular brands with Asian clientele, while cigarettes and tobacco categories are  ?holding steady?.

Tanzanian government plans may help to offset the effects of travellers' insecurity. Ministers are considering a proposal to build a multimillion dollar international airport by 2004/2005 in Mwanza, Tanzania's second city, adjacent to the existing airport near Lake Victoria. However, sources indicate the airport is still in the planning stage and that duty-free strategies have  not been considered.