Global tourism bounced back strongly in 2022, with international tourist arrivals more than doubling compared to the previous two years. The recent reopening of China has further fuelled optimism in the tourism sector.

To protect this growth, the travel industry must make a concerted effort to stamp out criminal activity in 2023. Our industry boasts one of the most secure supply chains in the world and generates vital revenue for the aviation, travel, and tourism industries.

https://www.weforum.org/agenda/2023/03/international-travel-bounced-back-strongly-in-2022/

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The paper sets out the disproportionate and unfair impact illicit trade has on duty- and tax-free channels through fraudulent labelling by criminals and in terms of lost sales opportunities. It calls on national governments and cross-border enforcement agencies to work with industry to put an end to the practice.

In addition to warning consumers of the dangers of illicit goods and how to distinguish genuine duty-free products from falsely labelled ones, the position paper recommends:

1. Better regulation of informal and casual retail channels; such as street stalls and markets, and for the robust implementation of existing rules
2. Greater control over Free Trade Zones (FTZs) & Special Economic Zones; with a common approach to enforcement to prevent the emergence of illicit trade hot-spots
3. Help educating consumers; to build on industry-led initiatives such as the www.duty-free-club.ru website
4. Investigation of duty-free specific issues; such as fraudulent mislabelling, an emerging trend among criminals
5. Enhanced cooperation between industry and enforcement bodies; to tackle the “common enemy” that is illicit trade

>> Click here to read the full position paper.

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The updated report notes increasing work by governments and authorities to strengthen enforcement, but notes there is still more to be done.

It is important to know that duty- and tax-free sales are not free zone sales. Duty free sales take place in a highly regulated retail environment e.g. airports, ports, ferries, cruise ships and land border shops, and their operations are governed by national customs authorities. Our supply chain is one of the most secure in the world with processes and technologies in place to provide for verification of registration, compliance, certification, review and audit.

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