Picking up a few bottles of duty free wine, some perfume or a giant Toblerone at the airport is a tradition for many overseas travellers. But are Kiwis getting the best deal on these products?
Travel journalist Josh Martin said that the assumption that everything is cheaper in duty free needs to be challenged, as most items in a duty free store are not subject to Government duties.
Savings would not be found on items like Whittaker’s chocolate bars or a pair of Ray Bans as they “were never subject to extra duties and taxes”.
However, savings can be found on items that are traditionally subject to high taxes, like alcohol, cigarettes and tobacco.
“Governments slap massive taxes on, so you don’t buy them. Duty free stores, if they’re not having taxes, should be cheaper,” Martin told Breakfast.
For example, a price comparison undertaken by Martin revealed a 1L bottle of Jack Daniel’s is $54 at Auckland Airport’s Aelia Duty Free, compared with $70 at Liquorland.
However, a 100ml bottle of Viktor and Rolf Flowerbomb Eau de Parfum is close to $30 cheaper at Chemist Warehouse.
Retailers make the decision on how much of the saving is passed onto consumers.
“Often, it’s not enough, it’s not what the tax value would be passed on.”
They can get away with this due to a combination of a captive audience and not much competition, said Martin.
“The industry calls that ‘dwell time’. When you clear security and customs…you’ve probably got 60 to 90 minutes, and you want entertainment.
”It might be grabbing a coffee or looking at the shops, and you can’t exactly shop around.”
Aelia has been contacted for comment.
SHARE ME