Page 1. WELCOME to The Moodie Report 7 Days, writes Martin Moodie. I have never

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1 Issue 393 The Week in Travel Retail Days FRIDAY SATURDAY SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY 5 MAY 2011 WELCOME to The Moodie Report 7 Days, writes Martin Moodie. I have never seen people lining for luxury goods, mainland Chinese tourist Sun Ling told Xinhuan News in Hainan this week. I have to come very early in the morning to line up, otherwise the shelves will be bare, added Fang Gege, a student from Hangzhou. The startled travellers were referring to the recent phenomenon of domestic duty free shopping on the resort island and to China Duty Free Group s (CDFG) new 7,000sq m store at Sanya. The store s sales have boomed since 20 April when central government regulations came into effect allowing mainland Chinese and (with tighter restrictions) Hainan Island residents to purchase duty free items. This week s Golden Week holidays saw amazing scenes at the store. Local reports said customers were lining up from 5a.m, five hours before opening, while extraordinary pictures published on The Moodie Report.com show huge, expectant crowds gathered around the Gucci boutique, the sunglasses department and the beauty products area. CDFG Marketing Director Antonio Hao told The Moodie Report: From 20 April till 2 May the store received 203,200 customers. On average it receives 15,631 per day, and 1,303 per hour. The maximum number of daily customers received is 23,700, the minimum 12,500. In transaction terms, that footfall translated into 55,526 individual sales during the period. On average we received 4,271 transactions [daily], said Hao. Now a second player is poised to enter Hainan s domestic duty free scene. As we revealed this week, aviation-to-leisure conglomerate HNA Group is to open a duty free store in Haikou Meilan International Airport s domestic departures area. HNA has appointed Singapore-based Heinemann Asia Pacific as its strategic business partner, a fantastic coup for the 100% subsidiary of Hamburg-based Gebr Heinemann. We are confident that this [Heinemann] partnership will bring both parties closer to uncovering the ideal solution and balance the expectations of the Chinese and international travellers visiting our airport, HNA Group said. Heinemann Asia Pacific Managing Director Steffen Brandt told us: It is a very exciting moment for our team here in Singapore and of course for our parent company too. Now we have to perform and work hard in order to make it successful and meet expectations. That should prove straightforward if the words of Teng Rui, Vice General Manager of CDFG s Sanya store to local reporters are anything to go by. Hainan is famous for its Three S s sea, sun and sand. Now, it can add a fourth S shopping, he said. Image of the Week Excitement reaches fever pitch among Chinese shoppers outside the Gucci boutique at China Duty Free Group s new Sanya store on Hainan Island earlier this week. New regulations allow mainlanders and Hainan locals to buy at duty free prices, subject to certain stipulations. FAST, FACTUAL, FREE QUOTES OF THE WEEK This is a very exciting development for us. Through the introduction of new stores at Zürich and Geneva airports, we will be able to offer arriving passengers the full range of core category products as well as other convenience goods. The Nuance Group CEO Europe Andrea Belardini says the introduction of Arrivals duty free shopping on 1 June will deliver a huge boost to the Swiss duty free business. We are very happy about this return to the travel retail market in Poland. The market there is very promising and the Heinemann Duty Free brand will make its debut in the Polish market. Gebr Heinemann Co- Owner Gunnar Heinemann hails the company s victory in a tender for stores at Wroclaw Airport s new terminal. Over 14,000 Mainland Chinese customers visited our shop on that opening day and we had over 5,000 transactions. It is really good news for us. China Duty Free Group Marketing Director Antonio Hao takes delight in the retailer s new Sanya domestic duty free operation on Hainan Island. Page 1

2 BUSINESS NEWS ASIA PACIFIC. In an important breakthrough, The Valiram Group has been named as the sole retailer onboard all Star Cruise liners in its Asian fleet. It is the fast-growing travel retailer s first luxury cruise concession. The company noted: This strategic collaboration with the Genting Group continues to signify Valiram s strength as one of the region s leading luxury goods retailers and travel retail specialists, as it adds onto its portfolio a world-class luxury cruise retail project. Star Cruises is a pioneer of the Asian cruise industry and is the leading cruise line in Asia Pacific. Valiram will manage around 3,279sq ft of retail space including multiple duty free product categories ranging from watches, jewellery and fashion and accessories to cosmetics & fragrances and confectionery. For more on this story go to CANADA. The Frontier Duty Free Association (FDFA), representing Canada s land border duty free retailers, has unveiled a consumer competition as part of its first national marketing campaign. The campaign is designed to boost awareness of the association s new website and its members stores. The competition is expected to drive further traffic to the FDFA s new website. The Duty Free Canada What's your travel character? competition will offer the chance to win a C$1,000 Duty Free shopping spree at A person s travel character is first determined after answering three short questions, then an image is produced. Participants can win by writing an amusing caption for the image. The winning caption is chosen by a panel of duty free judges. There is a second chance to win another C$1,000 shopping spree. When contestants submit their image to the Duty Free Canada Facebook page, the winner is determined by popular vote; the caption with the highest number of likes will be declared the winner. As captions are entered they'll be posted on Duty Free Canada's Twitter feed and Facebook page. The winners will receive a C$1,000 gift certificate that can be redeemed at participating land border duty free stores on any duty free products. The competition begins on 19 May and ends on 4 August CHINA. As noted (page 1), China Duty Free Group s new Sanya store is flourishing since new regulations came into effect on 20 April allowing Chinese citizens to buy duty free items under certain conditions on Hainan Island. Marketing Director Antonio Hao told The Moodie Report that early reaction from Chinese customers has been spectacular. Over 14,000 Mainland Chinese customers visited our shop on that [opening] day and we had over 5,000 transactions, he said. It is really good news for us. The English language Global Times of China was equally enthusiastic, noting that this week s Golden Week May holidays had seen some customers lining up outside the store since 5a.m. More than 60,000 tourists had been expected to visit the store on Sunday, the second day of the three-day Golden Week May Day holidays, the report said. Few items were left at the Estée Lauder, Chanel, Dior and Lancôme store counters and a salesman at the Swatch store counter said that his supplies would be replenished only after May Day holidays. Moodie Interactive: Click for the advertiser s website Page 2

3 The Sanya store covers 7,000sq m and features all major categories including perfume & cosmetics, jewellery, watches, clothing, leathergoods, sunglasses, travel accessories and Chinese and Hainan specialties. Duty free prices are 10 35% lower than in domestic department stores and on a par with regional duty free pricing, the company said. In related news, powerful local conglomerate HNA Group has announced a similar operation at Haikou Meilan International Airport, in a strategic A long queue outside Sanya Duty Free just before opening time at 10am partnership with Heinemann Asia Pacific. A refurbished walk-through HNA Duty Free duty free shop is in place in the airport s domestic departures area. Haikou is the capital city of Hainan Province and, like Sanya, has been approved by the central government for the new duty free shopping policy. As a company originated from Hainan, we have been seeking the possibility to operate the business and have finally found a solution with the provincial government and acquired approval from the central government as well, said an HNA Group executive. It is our aim to create a fresh and exciting shopping experience in the shop and fulfil the individual needs of passengers of all backgrounds departing from our airport. To reach that goal we have chosen Heinemann Asia Pacific Pte. Ltd. from Singapore as our strategic business partner. POLAND. Gebr Heinemann has been awarded the exclusive concession to run two duty and tax free stores in Wroclaw Airport s new terminal. The new terminal is scheduled to open in October this year, as Wroclaw prepares to host a number of games at next year s European Football Championships, co-hosted by Poland and Ukraine. Both stores are located in the Schengen area of the new terminal. One, covering 290sq m, will offer perfumes & cosmetics; the other 270sq m outlet will offer all other tax free goods including liquor, tobacco and confectionery, according to the retailer. The contract is for a minimum of five years, with an option to extend, The Moodie Report understands. Gebr Heinemann Co-Owner Gunnar Heinemann told The Moodie Report: We are very happy about this return to the travel retail market in Poland. The market there is very promising and the Heinemann Duty Free brand will make its debut in the Polish market. So we will be given a chance to show our retail expertise in Wroclaw very soon and we are very grateful for that. Poland s cities and countryside have great potential for both business and tourist travellers and we won t miss the chance to present them with a great shopping experience at Wroclaw Airport. The Moodie Report understands that Baltona, Inflight Service and HDS Polska also bid for the concession. All three operators are present elsewhere in the Polish duty free market. Wroclaw Airport handled 1.65 million passengers in 2010, and is a hub for low-cost airlines including Ryanair and Wizz Air. Moodie Interactive: Click for the advertiser s website Page 3

4 SOUTH KOREA. Lotte Duty Free has withdrawn its legal challenge to an agreement between The Shilla Duty Free and Incheon International Airport Corp (IIAC) to open a Louis Vuitton store at the airport, The Moodie Report understands. The agreement, first revealed to the industry by The Moodie Report on 30 November 2010, aroused enormous controversy in South Korea s travel retail sector. Lotte Duty Free, which had itself pitched hard to secure an agreement with Louis Vuitton, was bitterly disappointed at the Shilla breakthrough and launched a legal challenge to the deal, alleging breach of contract. Its injunction requested Incheon District Court to prohibit the airport corporation from signing the contract with Shilla. That injunction has now been withdrawn, we understand. The Vuitton store will span 550sq m probably the biggest single-brand boutique in an airport anywhere and is currently under construction in Incheon s central Departures area, in new retail space that has been created especially to house the store. Sales in year one are expected to hit US$100 million, according to IIAC and Shilla. The next issue of The Moodie Report Print Edition, to coincide with the TFWA Asia Pacific exhibition this month, will feature an in-depth report on Incheon and the South Korean market s leading retailers. SWITZERLAND. The Nuance Group has confirmed it will open Arrivals duty free stores at Geneva and Zürich airports on 1 June as Swiss legislation permitting duty free Arrivals shopping at international airports comes into effect. This is a very exciting development for us, as we believe Arrivals duty free is a great opportunity to extend our services to customers flying into Switzerland, said The Nuance Group CEO Europe Andrea Belardini. Through the introduction of new stores at Zürich and Geneva, we will be able to offer arriving passengers the full range of core category products as well as other convenience goods. Together with our airport partners, we aim to provide exciting new retail opportunities, not only for Swiss residents, who can enjoy a very convenient shopping experience, but also business and leisure travellers coming to and from Switzerland, added Belardini. Now we ll have the opportunity to capture all arriving flows. Work is nearing completion at both key gateway locations, where the company will add a further 2,000sq m of Arrivals retail space to its existing Swiss operations. The introduction of the new stores will also enable the company to launch a new collect on return service, which will allow passengers to select products upon departure and pick up upon their return to Switzerland. Stores will open at Geneva and Zürich on 1 June, followed by a second Zürich store later this summer. Nuance expects to create 50 new jobs. Moodie Interactive: Click for the advertiser s website Page 4

5 UK. Aelia began trading at London City Airport on 1 May after securing the tax and duty free concession at the location. The retailer replaces The Nuance Group, and inherits a store of about 300sq m offering perfumes & cosmetics, liquor, tobacco, confectionery and electronic accessories. Aelia will also operate a fashion & accessories corner offering a selection of premium brands. A tender for the concession was initially launched in 2009, but The Moodie Report understands that the decision to change concessionaire was confirmed earlier this year. London City Airport handled 2.8 million passengers in 2010, -0.6% fewer than in The airport handles primarily business traffic, and has a particularly affluent profile compared to most other UK airports. Swiss destinations are crucial to the airport, and sales are likely to be affected by the introduction of Arrivals duty free in Switzerland next month. TENDER & CONTRACT NEWS ISRAEL. James Richardson has been awarded one of the two Haifa port shop duty free concessions, recently put out for tender by the Haifa Port Authority. The shop will service cruise passengers leaving Israel and merchant marine sailors visiting the port. Over 150,000 passengers sail from Haifa each year (including short-term visitors sailing on visiting cruise ships). The shop will measure between 300sq m and 350sq m, and will open shortly to coincide with the cruise season in Israel. During the off-season the shop will be refurbished. The Moodie Report understands that Sakal Bros was the other victor in the tender which offers five-year terms with two-year options. Until now James Richardson operated a shop only servicing merchant marine sailors and is pleased to be able to offer the JR shopping experience to departing travellers as well, said James Richardson Duty Free Division Chairman Garry Stock. SINGAPORE. Changi Airport Group has called a tender for three luxury brand-name concessions at Singapore Changi Airport Terminal 3. The airport company said it was seeking unique, exciting brands that are not currently represented at Terminal 3, which would inject buzz, enhance the trade mix and differentiate the retail offering. The units are located in Departure/Transit Lounge South and measure 112sq m, 103sq m and 86sq m. The contracts will run for three years from 9 July 2012, and there is no option for renewal. The closing date for offers is 24 May. FOOD & BEVERAGE & OTHER COMMERCIAL REVENUES UK. Autogrill-owned HMSHost Corp has opened a new Italian food & beverage concept, Trattoria Milano, at Manchester Airport Terminal 3. The unit opened on 15 April and is located behind Customs in the terminal. Manchester Airport Managing Director Andrew Harrison said: Passengers travelling through Terminal 3 tell us that they want a broad range of catering and retail which is why we are investing to improve the departure lounge. The opening of Trattoria Milano is an important milestone in that process. We look forward to working with the team to make the restaurant a great success. The Trattoria s menu offers a variety of panini, pastas, salads, and handmade pizzas. House specialties include an appetizer of Vitello Tonnato Fredo sliced veal in tuna sauce, as well as popular Italian dessert tiramisu. Trattoria Milano is a custom restaurant developed by HMSHost exclusively for airport travellers. We created an authentic menu that replicates dishes one would find in Italy, including artisanal stone-baked pizzas, said HMSHost Vice President Europe and Middle East Dawn Wilding. We are delighted that its debut location is Manchester Airport. Page 5

6 RETAIL & COMMERCIAL SALES RESULTS BELGIUM. Brussels Airport retail revenues climbed by +2.3% year-on-year in the first quarter to 11.2 million, according to majority shareholder MAp Airports. Underlying growth was +6.6%, the company said, with growth driven by strong spend per passenger in the shopping outlets, but this was dragged down to +2.3% by differences in the reporting of revenues in the month. Total revenues rose by +4.1% to 81.4 million with EBITDA (before specific items) up by +6.7% at 40.4 million. DENMARK. Copenhagen Airport Shopping Centre revenues climbed by +4.5% year-on-year in Q to DKK123.5 million (US$24.3 million), with duty free income rising by +8.4%, driven by an improving non-eu passenger mix. Of the other key commercial services, car parking revenue increased by +6.8% to DKK65.3 million (US$12.8 million) within total concession revenue growth of +5.2% to DKK201 Copenhagen Airport revenues Q million (US$39.5 million). Q1 Q1 Change DKK millions on year Aeronautical revenues % Shopping Centre % Parking % Other concessions % Total concession revenue % Rent % Hotel % Other sale of services % International % Total services & others % Total revenues % Copenhagen Airports said: Total concession revenue from the Shopping Centre increased by +4.5% mainly due to the increase in passenger numbers and by increasing spend per passenger. Revenue is affected positively by all business areas. The development towards greater product and price differentiation has continued in the first quarter of 2011 by the opening of Lagkagehuset (bakery), Hamleys toy store and Molo children s wear. Bar and restaurant units have contributed with a revenue increase of +12.1%. Total company revenue grew by +2.5% to DKK million (US$141.8 million) while EBITDA (before specific items) climbed by +2.7% to DKK346.6 million (US$68.1 million). Traffic growth was +4.3% in the period, affected by the shift of Source: Copenhagen Airports A/S the Easter holidays to later in April this year, unrest in the Middle East and the natural disaster in Japan. The growth has been driven by continued strong long haul development following the launch of new routes to New York JFK, Toronto and Doha, as well as services to Egyptian destinations Cairo and Hurghada in UK. BAA (SP) Limited, which owns London Heathrow and Stansted airports, has reported a continued strong performance from retail activities in Q Gross retail income climbed by +7.4% year-on-year in the quarter to million, net retail income hit million (+7.6%) while the key figure of Net Retail Income (NRI) per passenger rose by +7% to At Heathrow, gross retail income increased +9.8% to 94.4 million (2010: 86.0 million) and NRI per passenger increased +7.3% to 5.91 (2010: 5.51). The performance was led by duty and tax-free, airside specialist shops, catering and car parking. BAA (SP) net retail income per passenger Q Q1 Q1 Change on year Heathrow % Stansted % Total % Source: BAA (SP) Limited Retail growth was supported by a new walk through area in the World Duty Free store in Terminal 3 and extension of the store in Terminal 5. In airside specialist shops, the recent exceptionally strong trading in the luxury segment continued, noted BAA. Strength in car parking reflected increased usage, tariff increases, and strength in premium business usage. Stansted s gross retail income declined -4.7% to 16.3 million (2010: 17.1 million), which BAA described as a resilient performance given passenger trends which meant that NRI per passenger increased +2.0% to 3.87 (2010: 3.80). Growth in Stansted s NRI per passenger reflects particularly performance in airside specialist shops and car parking, the company added. Page 6

7 Duty and tax free turnover was 25.6 million (23 million in Q1 2010) in Q1 2011, while airside specialist shops produced turnover of 19.4 million ( 16.8 million last year). Total group turnover rose by +5.6% to million with adjusted EBITDA up by +15.4% to million. In the three months ended 31 March 2011, combined passenger traffic at Heathrow and Stansted increased +0.6% to 18.7 million (2010: 18.6 million). Year on year performance reflects continued growth at Heathrow partially offset by Stansted s performance. DATA ROOM PASSENGER TRAFFIC NEWS ASIA PACIFIC. Asia Pacific airlines carried 15.5 million international passengers in March, a -1.0% decline compared to the same month last year, according to preliminary traffic figures released by the Association of Asia Pacific Airlines (AAPA). The association said these figures reflect some moderation in demand growth for passenger travel, partly as a result of the effects of the Japanese earthquake on travel patterns, and for trade within the region. Passenger traffic measured in RPK terms fell by -0.8%, but available seat capacity increased by +6.3%, resulting in a 5.4 percentage point drop in the average international passenger load factor to 74.8%. Commenting on the results, AAPA Director General Andrew Herdman said: The March traffic figures to some extent reflect the consequences of the earthquake in Japan which led to significant disruptions to normal travel patterns. Japan generally accounts for about a fifth of overall traffic within the Asia Pacific region, and we saw sharp falls in demand for travel to, from and within Japan in the weeks following the earthquake. Demand for business travel has been less affected. Consumer confidence is still fragile but, more recently, there are some tentative signs of a recovery in demand for leisure travel, and a number of trade campaigns being launched to promote travel and tourism both to and from Japan. Japan also plays an important role in global production and supply chains, and the air cargo industry is working hard to support efforts to overcome component shortages and restore normal production flows. Herdman added: Looking at the first quarter of the year, overall passenger traffic for Asia Pacific airlines still grew by +3% compared to the same period last year. While the outlook for continued regional and global economic growth remains positive, the lingering effects from the Japanese earthquake will continue to have an impact on patterns of travel demand in the second quarter of the year. More generally, we remain very concerned by the continued rise in oil prices, which are already pushing up the cost of travel and threatening to undermine global economic growth. INTERNATIONAL. The International Air Transport Association (IATA) has reported a slowdown in passenger demand in March 2011, which posted year-on-year growth of +3.8% compared to the +5.8% recorded in February. Compared to February, global passenger demand fell by -0.3% in March. The profile of the recovery in air transport sharply decelerated in March. The global industry lost two percentage points of demand as a result of the earthquake and tsunami in Japan and the political unrest in the Middle East and North Africa (MENA), said IATA Director General and CEO Giovanni Bisignani. The impact of the events in Japan on global international traffic was a -1% loss of traffic in March. Looked at regionally, Asia Pacific carriers saw a traffic loss of over -2%, North American carriers had a -1% drop and Europe s carriers a -0.5% fall. Japan s domestic market was the most severely affected with a -22% fall in demand. Page 7

8 International air traffic development March 2011 & YTD 2011 Mar 2011 vs Mar 2010 YTD 2011 vs YTD 2010 Region RPK ASK Load RPK ASK Load growth growth factor growth growth factor Africa 7.0% +1.0% % +4.0% 63.7 Asia Pacific +0.0% +6.7% % +6.9% 75.9 Europe +5.3% +9.1% % +9.3% 74.0 Latin America +22.2% +16.2% % +13.8% 77.6 Middle East +5.6% +9.8% % +10.4% 73.9 North America +3.7% +9.9% % +10.6% 75.4 Industry +3.8% +8.6% % +8.9% 74.5 The disruptions in MENA cut international travel by 0.9 percentage points. Egypt and Tunisia experienced traffic levels 10-25% below normal for March. Military action in Libya virtually stopped civil aviation to, from and within that country, IATA added. Capacity adjustments lagged behind the sudden drop in demand. Against global demand growth of +3.8%, capacity expanded by +8.6%. The average load factor fell by 3.5 percentage points to 74.6%. Source: IATA The second quarter of 2011 is likely to see continued depressed air travel markets due to the events in Japan and MENA, according to IATA. However, strong underlining economic growth trends should support recovery in both passenger and cargo markets in the second half of Bisignani said: The big uncertainty is the price of oil. Even in the US$120 a barrel range, it appears that strong economic growth in markets outside of Europe is continuing. We see this in the strong demand from business for premium travel which maintained +7.7% growth through February. But many leisure travellers are putting off flying because of the impact of high oil prices. The fragility of the situation is demonstrated by the considerably weaker +3.3% year-on-year growth in economy class travel in February. And, despite efficiency gains, the industry s 1.4% profit margin leaves it vulnerable in the face of volatile markets. INTERNATIONAL. Airports Council International (ACI) has reported a modest +2% growth in global passenger traffic in March, dampened by the impact of natural disasters and a sharp drop in North Africa traffic (-18%) due to political events. For the first quarter of 2011 global traffic rose by +4% compared to Q1 last year. [Note: The table below relates to international traffic only.] Speaking at the official opening of the new ACI World headquarters in Montréal this week, ACI Director General Angela Gittens said: We admire the resilience International airport traffic by region March 2011 of our affected members who have worked diligently to maintain vital airport services ACI March 2011 Year to date despite the magnitude of natural disasters and region International Change International Change the impact of political unrest. We will be pax ( 000) on 2010 pax ( 000) on year supporting them and working with them to assist in any way that we can as they re-build their facilities. Africa 4, % 14, % Asia Pacific 31, % 95, % Europe 63, % 170, % Lat. Am. & Caribbean 6, % 20, % Middle East 6, % 19, % North America 16, % 44, % ACI total 129, % 364, % Following the devastating earthquake and tsunami in Japan, Tokyo Narita passenger numbers declined by -29% while Haneda reported -19% fewer passengers. Source: Airports Council International Political uncertainty was the cause of extensive declines in Egypt, Tunisia and Bahrain. In Egypt, Cairo lost -37% of passengers compared to last year. Sharm-el-Sheikh (-68.5%) and Hurghada (-79%) were hit the hardest by tourists staying away almost entirely from Egypt. In Europe, Athens Airport (-16%) continued to be affected by the national economic crisis. Although a third of the airports in the monthly PaxFlash sample saw declining passenger volume, overall growth in most regions was positive. For the month, Latin America/Caribbean reported the strongest growth (+10%) and overall traffic in Asia Pacific, Europe, Middle East and North America remained positive as well. Growth continued robustly in India, Brazil, Turkey and Russia. Page 8

9 Commenting on the long term outlook, Gittens said: The good news is that for many markets, the traffic outlook is holding to expectations and steady growth is a reality. With traffic rising significantly over the next few years, we will be called upon to satisfy our airline customers infrastructure needs while at the same time enhancing safety, security and efficiency. Airport development thus remains a critical exercise in our industry which is capital intensive and characterised by long lead times for approvals and execution. NEW ZEALAND. Auckland Airport s international passenger volumes held steady in March, rising +1.4% yearon-year. Japanese and South Korean traffic both fell sharply, by -12.9% and -34.6% respectively; Chinese traffic, however, increased by +10.7% to 10,235. While traffic declined from Hong Kong, Sydney and Los Angeles in particular, this was offset by increased traffic from Melbourne and Singapore, the airport company said. Jetstar Asia commenced flights to Singapore in March At the other airports in which Auckland Airport has an interest Queenstown in New Zealand and Cairns and Mackay airports in Australia traffic rose strongly. For the full details of March traffic development at Auckland go to TRAVEL & TOURISM NEWS US (HAWAII). Japanese visitor arrivals such a key indicator for the health of Hawaii s travel retail business fell by -17.9% to 89,779 in March, following that month s earthquake and tsunami and subsequent nuclear crisis, according to new figures from the Hawaii Tourism Authority. The quake and tsunami, which struck on 11 March, and prolonged concern over the resultant impact on nuclear facilities, are expected to have a sharp impact on outbound Japanese travel this year. Hawaii, where DFS has such a strong presence, will be vulnerable to any such downturn. Local sources say the March figures were protected by a strong performance earlier in the month and the fact that many Japanese travellers were committed to their trips and therefore did not cancel. Wholesale Area Sales Executive The Wholesale Area Sales Executive will be responsible for countries in South America. They must be a critical link between Bulgari and the wholesale customer base, providing sales, service and overall business management which will ensure product sell-through and image enhancement for our jewelry, watches, and accessories business. Accountabilities: To open new accounts and achieve forecast sales budget To follow up on orders, delivery issues, and customer inquiries of any kind To gather and report sales data to Wholesale Director To manage visual presentations To introduce new items to the trade and write customer orders To manage dealer inventory To work trade shows and attend sales meetings Qualifications/Professional Capabilities: Extensive experience in high-end luxury retail sales of jewelry and watches Expertise in wholesale operations Excellent selling skills Must be fluent in Spanish and Portuguese For further information or to apply please click here or go to careers.bulgari.com Page 9

10 From the time of the disaster Japanese arrivals may have been off by around -25% for the month, including by near -90% on the day itself, when inbound flights were cancelled. Anecdotal feedback suggests early projections of a -45% fall in April may be pessimistic, though that month is likely to represent the nadir of the downfall. Prior to March visitor arrivals from Japan had increased in nine out of the last ten months (since May 2010). The -17.9% loss in arrivals in March resulted in a -4.2% decline in total Japanese visitor spending to US$149 million. But those who came during the month spent an average of US$273 per person, up from US$244 per person in March A stronger Yen largely contributed to the increase in daily spending. Among the four larger islands only Maui (+15.3% to 5,708 visitors) saw positive growth in Japanese arrivals in March Kaua i (-43.8% to 1,199), O ahu (-18.7% to 85,796) and Hawai i Island (-12.7% to 12,968) saw double-digit losses compared to a year ago. Total spending by Japanese visitors for the first quarter of 2011 was US$498.3 million, +16.2% higher compared to the same quarter last year. Total Japanese arrivals increased +1.6% and the average daily spending rose to US$283 per person, from US$254 per person in the first quarter of PEOPLE NEWS, JOBS, EVENTS & NOTICES BELGIUM. Travel retail expert Gerry Murray has formed a travel retail consultancy and brand agency to service brands/companies keen to establish themselves or grow in the sector. With more than 15 years industry experience, Murray who recently vacated the position of Sales Director at Godiva Chocolatier is establishing a consultancy and brand representation service to develop new and exciting product offers within travel retail industry. Murray can be contacted on tel: or by at gerrymurray101@gmail.com FRANCE/INTERNATIONAL. Kofi Annan, former Secretary-General of the United Nations (UN), will make the keynote address at the TFWA World Exhibition Conference in Cannes in September, with theme A Brand New World. Annan was the seventh Secretary-General of the UN, serving two terms from January 1997 to the end of December 2006, and was the first to emerge from the ranks of UN staff, according to TFWA. TFWA anticipates that his presentation at the conference will touch on economic and political issues affecting the world today and provide insight into the long-term implications of the current unrest in North Africa and the Middle East. TFWA has also announced that British singer-songwriter James Blunt will be the star attraction at this year s Cannes show Le Premium Evening on Thursday 22 September. Blunt will give an exclusive dinner concert at the event. For further information please consult SWITZERLAND. Villiger Sons Ltd has announced that Chris Pfister, Export Director Asia, Russia, Middle East and Duty Free, has left the company (effective 30 April) following his decision to take early retirement. In a note to business partners, Director Peter Witzke confirmed that Pfister had left the company to run his private company in the healthcare sector. We would like to thank Chris for his dedication to our business and wish him a lot of success in his future career," Witzke said. Plans to find a successor have been launched, he added. Thank you for your readership and support of The Moodie Report. Martin Moodie, Founder and Chairman Page 10