Dubai Duty Free expects $2 million sales hit from electronics ban

 

 

DUBAI (Reuters) - Dubai International Airport's duty free operator estimates that it will lose about $2 million (1.60 million pounds) in sales this year from the ban on carrying most electronic devices on United States-bound flights, a senior executive said on Thursday.

 

Under new security measures announced this week, electronics larger than a mobile phone will be banned from passenger cabins on direct flights to the United States from airports in eight Muslim-majority nations, including the United Arab Emirates, starting Saturday.

 

"We estimate that the ban will cost us around $2 million in revenue for the year," Dubai Duty Free's Chief Operating Officer Ramesh Cidambi told Reuters in an emailed statement.

 

The estimate is based on sales of electronics to U.S.-bound passengers, excluding mobile phones and accessories, for 2016 and if the ban runs until the end of the year. U.S. officials have said the ban is indefinite.

 

Dubai Duty Free made $1.85 billion in total sales last year, Cidambi said.

 

The chief executive of Dubai Airports, Paul Griffiths, had earlier told DubaiEye radio that the ban on electronics covers goods sold in the airport, including duty free stores.

 

The regulations, prompted by reports that militant groups want to smuggle explosive devices in electronic gadgets, state that electronics larger than a mobile phone -- including laptops and tablets -- must be stowed with checked baggage on U.S.-bound passenger flights.

 

Emirates [EMIRA.UL], the only airline operating direct flights to the United States from Dubai, will allow passengers to hand over electronic devices at boarding to minimise disruption, President Tim Clark told Reuters on Wednesday.

 

However, analysts warn that travellers, especially those who want to use laptops to work during flights, could switch to airlines and airports not affected by the new regulations.

 

Griffiths said he does not expect a significant impact to Dubai airport's passenger numbers, while Clark said that Emirates will monitor the commercial impact.

Britain followed the United States by introducing a similar ban on Tuesday, though the UK restrictions do not include the UAE.

 

(Reporting by Alexander Cornwell; Editing by David Goodman)

 

-- © Copyright Reuters 2017-3-23

2 hours ago, snoop1130 said:

Britain followed the United States by introducing a similar ban on Tuesday, though the UK restrictions do not include the UAE.

So it is nothing to do with this "story".

25 minutes ago, Upnotover said:

So it is nothing to do with this "story".

No, the Brits see it as a perfect opportunity for protectionism for British Airways.

Along with the liquids ban duty free is struggling.

Or is it perhaps more to do with massive mark-ups and the fact that most items can be bought cheaper at Tesco when you get there.

 
" However, analysts warn that travellers, especially those who want to use laptops to work during flights, could switch to airlines and airports not affected by the new regulations. "

Yeah ! , if you don't like it go somewhere else !!
As easy as that ? [emoji51]
 

1 hour ago, jacko45k said:

Along with the liquids ban duty free is struggling.

Or is it perhaps more to do with massive mark-ups and the fact that most items can be bought cheaper at Tesco when you get there.

Is the liquid ban a big issue, what with sealed bags now used as standard? I know that there are some restrictions in some locations re: transferring flights, but those seem to be the exception. Maybe we will see the same solution for electronics.

 

I agree with you about the prices - I have never found Dubai Duty Free to be a bargain; quite the opposite, in fact. There is something that seems to change one's perception in airports, and suddenly £10 for a stale sandwich and a cup of coffee seems reasonable.

Edited March 24, 20179 yr by RuamRudy

4 hours ago, RuamRudy said:

Is the liquid ban a big issue, what with sealed bags now used as standard? I know that there are some restrictions in some locations re: transferring flights, but those seem to be the exception. Maybe we will see the same solution for electronics.

 

I agree with you about the prices - I have never found Dubai Duty Free to be a bargain; quite the opposite, in fact. There is something that seems to change one's perception in airports, and suddenly £10 for a stale sandwich and a cup of coffee seems reasonable.

It depends on my  routing, but I have no  direct flights to and  from BKK. Amsterdam will take  it off you sealed bag or not. And no duty free can be bought there for UK.

Poor buggers. According to the figures in the article the 'loss' equates to about 0.002 % of revenue - just a rough figure worked out in my head

Does anyone care about Dubai losing money? This is a country that exploited workers from poor countries to build it's temple to mammon.

Dubai Airport Implements U.S. Electronics Ban

Airport is world’s busiest for international traffic; ‘disruptive and operationally challenging’

https://www.wsj.com/articles/dubai-airport-implements-u-s-electronics-ban-1490426972?mod=e2tw

How does Dubai compare with Swampy on DF tobacco prices?