Senators question whether a duty-free shop at the airport will bring benefits
A new duty-free store aims to reduce the wait time and congestion in the arrivals hall of LF Wade International Airport.But Senators remain divided over whether the new store will speed up the flow of air passengers who arrive in Bermuda at the same time.Some Senators hope passengers will step out of line to buy cigarettes and alcohol, while others believe the shop will simply add to the delays.Junior Finance Minister David Burt introduced the Bermuda Airport (Duty Free Sales) Amendment Act 2011, which was passed yesterday.He said there would be “no appreciable impact” on local retail sales as the new store would come “mainly at the expense of duty-free shops in foreign airports”.Senator Burt said: “Passengers tend to arrive in the Customs baggage hall in waves as each flight arrives.“It is hoped that arrivals’ duty-free sales will mitigate pressure on Customs staff caused by these pulses by removing at least a portion of the arriving passengers from the initial rush on Customs control.”Sen Burt added it would also “increase passenger convenience”, as people wouldn’t need to carry their duty-free on the plane.The Senate heard that the new legislation brings Bermuda in line with more than 50 countries around the world, including the UK and Switzerland, which have arrivals duty-free stores.Goods on sale will be limited to cigarettes, cigar, tobacco, snuff, spirits and wine and will be subject to the existing duty-free allowances.People will have to declare purchased duty-free on their Customs Traveller Declaration (CTD) forms along with any other goods they’ve purchased abroad.Opposition Senate leader Michael Dunkley said he hoped the new store would do something to “kill the wait time” at the airport.He talked about returning from overseas trips only to be stuck waiting in several different lines such as Immigration, Customs, baggage reclaim, then again “to get out the door”.Sen Dunkley said: “I’m extremely concerned about how long it takes to pass through arrivals.“We have to make the experience more enjoyable for our people. It doesn’t do anyone any good to have to wait in lines especially as some people have travelled quite some distance.“We need to welcome Bermudians home with a warm welcome and give our visitors just as much of a welcome.”Sen Dunkley said he was happy to “live and learn” from other jurisdictions with similar operations.But he added: “I have to say I see the benefits being minimal, I really don’t think there are going to be tremendous benefits.”Independent Senator Walwyn Hughes said he didn’t see how a duty-free arrivals store “would be terribly helpful to anyone” saying he thought it would “delay people rather than speed things up”.He suggested a new store would “probably cause confusion” as people would be stopping to fill out or add things to their Customs forms.Sen Hughes said: “It’s going to take even more time. People are going to buy things then will have to adjust their Customs forms.“Government obviously sees some value in it, but I think it will cause even more confusion and delay at the airport.”Independent Senator Joan Dillas-Wright also said she was concerned about “the wait time and congestion this could cause”. She said: “My question is whether this is going to be of any benefit to Bermudians?”Government Senator Jonathan Smith called Bermudians “a fussy bunch of people” and said air travellers had to wait in lines at airports across the world.He said: “We live in a rapidly changing world. People expect a choice … we live in a last-minute society.“For the Bermudian who is coming back from a quick business trip who purchased nothing, it is clearly advantageous.”Sen Smith said the logistics of the store “would become apparent in due course”. He then highlighted the benefits of Government receiving lease revenue, multiple jobs being created and an increase in retail revenue.Opposition Senator Michael Fahy questioned the sale of “sin items” and asked what changes would be needed inside the arrivals hall. He also sought clarification that there was not a preselected vendor and an open tendering process would take place.Sen Burt responded by saying the “necessary commercial space” would be leased at the airport after Immigration but before Customs. He said there would be “some reconfiguring of the arrivals hall” but the vendor would incur most of the costs.Sen Burt also revealed the tendering process had been completed in 2008 with a recommended vendor being chosen from two interested parties. He blamed the delay on the regulations of the US Customs and Border Control.