Dubai Duty Free is set to lose US$2 million from the ban on laptops and large electronic devices on US flights.
About 2 per cent of the retailer’s annual sales of US$1.85 billion are generated by passengers travelling to the US. Of that about 5 per cent goes on electronics purchases.
“The electronics ban will mean that passengers cannot carry on board electronic items, including those purchased in duty free, that are larger than the commonly available smart phone,” said a Dubai Duty Free spokesman. “We do not believe there will be an exception.”
Airport duty free shops across the region are already coming under pressure because of the strong dollar which makes airport purchases in dollar-pegged Gulf economies more expensive for travellers from countries with weaker currencies.
The US device ban applies to direct flights from Jordan, Egypt, Turkey, Saudi Arabia, Qatar, Kuwait, Morocco and the UAE.
The directive is effective from March 25 until October 14.
“As the ban will not affect the sales of telephones or telephone accessories, which are about 55 per cent of the total electronics sales to US passengers, we estimate that the ban will cost us around US$2 million for the year,” the Dubai Duty Free spokesman added.
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