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Tuesday 1 3 May 2025 4 T F W A D A I L Y Yesterday’s TFWA Asia Pacific Conference was opened by TFWA President Philippe Margueri tt e, who examined the region’s evolving landscape, addressing key challenges and emerging opportunities that will shape the future of travel retail. “Economics, demographics and technology will play an important role in the coming years” A sia Pacific is the growth engine of the travel retail industry. For more than a decade, this region has set trends for passenger flows and, more than this, has helped raise airport and retail standards. In his inaugural address to the TFWA Asia Pacific Conference, TFWA President Philippe Margueri tt e highlighted that, as the region has grown in importance, this event has evolved to reflect that. “From providing a platform for European and American brands who wanted to increase their exposure in Asia Pacific, TFWA Asia Pacific Exhibition & Conference is now also a launchpad for regional players looking to expand into new markets within Asia Pacific, but also into Europe, the Middle East and the Americas,” he said. “Especially in Asia Pacific a combination of factors – economics, demographics and technology – is aligning to help us maximise the appeal of our brands and shops for a new kind of traveller.” The human instinct to explore is deep- rooted and stands strong in our DNA. “Even today, that urge to explore drives billions of people to travel abroad, spending trillions of dollars on the way,” Margueri tt e commented. “And they do that consistently. Figures show regular, long-term international passenger growth of 3% to 4% every year, barring the occasional interruption. That means passenger numbers are doubling every 20 years or so.” In this region, there are two economic superpowers – China and India – with the critical mass to drive consumption for decades. “They have the world’s two largest populations, making up more than a third of the entire planet,” said Margueri tt e. “China’s population has stopped growing, but it will remain the second largest globally until the next century. India’s will continue to rise till around 2050. More importantly, both countries have a sizeable middle class. Focusing on China and India alone, in the next 2-3 years we shall see more than 300 million people passing through airports who are keen to get abroad and explore other countries. They’ll be young, relatively a ffl uent and open to new cultures and new experiences.” A recent survey by the World Travel and Tourism Council reveals that over 4 in every 5 global travellers believe sustainable travel ma tt ers. “75% state they’re willing to travel more sustainably next year and Gen Z-ers are among them,” Margueri tt e explained. “In travel retail, sustainable initiatives have multiplied in the last few years as our industry takes this subject to heart. Sustainability must be integral to everyone’s strategy in this sector as we plan for the future.” Margueri tt e emphasised another important issue: passenger-processing time. “We’re making travellers wait too long to get airside at airports. Many of them face lengthy queues for check-in, immigration, security and boarding procedures. Free time available for shopping or eating has shrunk from 60 minutes to just 44. There’s li tt le point in o ff ering fantastic retail experiences if passengers are rushing past the airport shop to catch their planes.” If we succeed in cu tt ing passenger- processing time, it will mean exploiting the potential of cu tt ing-edge technology. “We’re starting to see the emergence of technologies that will enable us to get this new generation of travellers spending on their journeys,” Margueri tt e explained. “I’m referring to artificial intelligence, the capabilities of which we know are expanding almost daily. Imagine being able to access in real-time shoppers’ in-store transaction histories and demographics to detect browsing pa tt erns and deliver personalised recommendations or special o ff ers on the go.” In conclusion, Margueri tt e returned to the three key factors – economics, demographics and technology – that will play an important role in the coming years. “If we address them properly, they should generate significant value growth for our industry. We might have, here and there, some geopolitical news that could test our confidence, but in the end, these trends will remain and will be paramount to our success.” TFWA President Philippe Margueri tt e: “Especially in Asia Pacific a combination of factors – economics, demographics and technology – is aligning to help us maximise the appeal of our brands and shops for a new kind of traveller.”