Asia-Pacific could become the largest duty-free market in the world because of a growing tourism industry and potential changes in European Community countries, according to an industry official.
Elysabeth Blachais-Catoire, secretary-general for the Tax Free World Association, said Asia-Pacific was threatening to eventually unseed Europe as the biggest duty-free region when the European Community becomes a single market after July 1 next year.
She said the implications the changes might have on the industry were unknown but could threaten a European duty-free market which generated US$9.25 billion in 1996, more than 44 per cent of the $21 billion worldwide.
Asia-Pacific, by contrast, accounted for $6.4 billion and 30.7 per cent of the global market.
The region actually dropped 2.9 per cent in 1996, the first time it had decreased. Figures for last year were unavailable.
The decrease was attributed to a drop in Japanese duty-free spending and a weaker yen.
However, the World Tourist Organisation has forecast Asia was heading into a period of growth because of 'intra-regional tourism and travelling'.
