Dubai Duty Free sales grow 11%

It earned Dh1.91b revenue for the first three months of 2018

Dubai’s airport duty free operator said that first quarter sales increased by 11 per cent, with sales in March amounting to a monthly record of Dh660 million.

In a statement yesterday, Dubai Duty Free said it recorded sales of Dh1.91 billion for the first three months of 2018.

The quarter followed a record year for Dubai Duty Free in 2017, in which it posted total sales of Dh7.05 billion.

Sales for March reached a new monthly record of Dh660.36 million, which represents a 10 per cent increase over March 2017, the company says. So far this year, monthly sales have been in excess of Dh600 million, with an average daily sale of Dh21.23 million, the statement added.

Dubai Duty Free has been bolstered by the increase in tourists, particularly Chinese and Russians, who were granted visas on arrival at the beginning of last year.

On the introduction of taxes, Colm McLoughlin, CEO of Dubai Duty Free, said in a statement: “While the introduction of VAT and excise duty in our Arrivals Duty Free has resulted in a drop in revenue in these areas, the fact that VAT is not applicable for the majority of sales in Departures has contributed to an increase in certain categories for departing and transit passengers.”

The company said that sales across all three terminals at Dubai International Airport showed an upward trend, including a 14 per cent increase in Terminal 2 and a 13 per cent increase in sales in Terminal 3.

Liquor, perfumes and tobacco held the top three spots category-wise in the first quarter of the year. Perfume sales reached over Dh276 million, accounting for 14 per cent of total revenue.