LIVE: TFWA Asia Pacific Exhibition & Conference opens with address by TFWA President Philippe Margueritte; all eyes on next gen
TFWA President Philippe Margueritte
Monday, May 12: Opening Address
Following welcoming comments from conference moderators, Michele Miranda, Conference Director at Tax Free World Association (TFWA), and author and venture capitalist Azran Osman-Rani, TFWA President Philippe Margueritte delivered the opening address of this year’s TFWA Asia Pacific Conference. During the 30-minute address, Margueritte examined the region’s evolving landscape, outlining key challenges and emerging opportunities that will form the future of travel retail.
Acknowledging that Asia Pacific (APAC) is the growth engine of the travel retail sector and international regulation can change every day at present, he discussed the human instinct to explore, the fact that passenger numbers are doubling every 20 years and that the world's two largest populations – China and India – both have a sizeable middle class. Today, the Chinese middle class is 700 million; and Chinese travelers are expected to grow to 200 million by 2028. Two-thirds of these travelers will be Gen Z consumers.
India and China dominate future population growth forecasts, with both nations’ middle classes fueling the next generation of travelers and reshaping global travel retail demand
Margueritte opened with a clear message: adapt or fall behind. “Asia Pacific is the growth engine of travel retail,” he said, referencing surging passenger numbers, booming middle-class populations in China and India, and the emergence of Gen Z as a dominant consumer force.
Margueritte took an optimistic tone, pointing to 18.9 million international travelers carried by Chinese airlines – a 34% year-on-year rise – and projected that 60% of India’s population will belong to the middle class by 2047. Yet he also warned of shifting priorities, with planned purchases in Asia Pacific down to 47% from 62% in 2019.
“Shopping needs to be an experience, something to enjoy, that stimulates the senses,” he said, emphasizing the need for digital and physical integration to meet next-gen expectations. Food and beverage, especially high-service meals in quick formats, was highlighted as the fastest-growing airport revenue segment.
Dwell time for Asia Pacific travelers has dropped by 16% in just a few years, a trend that TFWA President Philippe Margueritte warns is costing the industry. Investing in smoother airport processes could reverse the loss in retail spend
He voiced strong concerns about declining dwell time: “We are making travelers wait far too long to get airside. things are not getting any better. Dwell time for Asia Pacific travelers has dropped 16 percent in just a few years. This leads to lost spend in travel retail. It is our own financial interest to invest in passenger processing at airports.”
Looking ahead, Margueritte spotlighted the transformative role of AI. “Imagine accessing in real time shoppers’ transactional histories, adapting your brand display, pricing, or portfolio at the gate,” he said. “We are just at the beginning.”
He concluded by stressing collaboration: “AI without data does not exist,” Margueritte concluded. “We need to adapt a more collaborative mindset. Collaborating more effectively is what this week in Singapore is all about. We are at the epicentre of one of travel retail's most important regions.”
Alvin Tan, Minister of State for Trade and Industry in Singapore
The audience also heard welcoming remarks from Alvin Tan, Minister of State for Trade and Industry in Singapore, and Asia Pacific Travel Retail Association (APTRA) President Sunil Tuli. For a regional update, Tuli shared insights on the association’s key projects and advocacy initiatives driving progress in the Asia Pacific travel retail sector.
Alvin Tan, Singapore’s Minister of State for Trade and Industry, emphasized the city-state’s resilience and role as a global hub for travel retail innovation. While acknowledging the investment uncertainty affecting many businesses, he struck a hopeful tone for the future.
“2024 was a landmark year,” he said, citing a 21% rise in international arrivals and a 126% surge in visitors from mainland China. Singapore’s position as a cruise and air hub continues to grow, with new routes and infrastructure investments.
Major expansion is underway at Changi Airport, where Terminal 5 – equal in size to Terminals 1 through 4 combined – will begin construction this month. Once complete, it will increase Singapore’s total passenger handling capacity to 135 million per year. “The best at Changi is yet to come,” he said.
Tan also noted the opening of 30 new brands at Jewel Changi and praised the city’s ability to blend global innovation with homegrown cultural experiences in travel retail.
APTRA President Sunil Tuli
In a wide-ranging and optimistic keynote, APTRA President Sunil Tuli set the tone for the week with a forward-looking assessment of the region’s travel retail landscape. With India’s rapid growth in the spotlight, Tuli pointed to both the scale of transformation underway and the collaborative momentum needed to seize the opportunities ahead.
“India is a force that will significantly shape the future of travel retail for decades to come,” Tuli said, citing the doubling of the Indian travel retail market by 2029 and the planned increase in airports from 74 in 2014 to 205 by 2034. He credited the Indian government’s UDAN regional connectivity scheme and the US$1.3 trillion PM Gati Shakti National Master Plan as key infrastructure drivers. “Forty thousand Indians receive their first passport every day,” he noted.
But India wasn’t the only story. Tuli reminded the audience of APTRA’s broader role across 45 countries, emphasizing vigilance on regulatory developments and category-specific challenges, particularly in tobacco and alcohol. “Let’s remember, the tobacco category is a vital lifeline for the entire business,” he said. “We must make a robust case for continued exemption given the highly regulated nature of our industry.”
Tuli spotlighted shifting consumer behaviors in China and Southeast Asia, urging the industry to respond to changing travel habits and evolving retail expectations. “Chinese consumers are increasingly independent travelers, motivated by niche brands and intentional spending,” Tuli said.
Tuli also acknowledged tourism momentum in Vietnam, Japan, Thailand, Indonesia, Australia and New Zealand, and issued a reminder of the opportunity: “The phenomenal and sustained growth in the prosperity and mobility of the region’s consumer audience opens up remarkable opportunities – but also remarkable challenges.”
He closed by urging industry unity and deeper collaboration through APTRA, anchored in advocacy, knowledge-sharing, and networking. “This really is Asia’s time,” Tuli concluded. “The best way to realize those opportunities is for brands, retailers, and airports to share and optimize our operating model to deliver the experiences the region’s rising audience demands and deserves.”
Tech industry innovator and host of the podcast “Techburst Talks” Charles Reed Anderson
Tech with Purpose
In a sharp and thought-provoking address, tech strategist and Techburst Talks podcast host Charles Reed Anderson called on the travel retail industry to reset its relationship with innovation. Speaking as part of the “Travel Retail Next Generation” theme, Anderson challenged brands to focus less on flashy technology and more on solutions that create meaningful value.
“We tend to overhype and under-deliver,” he said. “Too much tech for tech’s sake—we forget about the value that it can provide people, and that travel delivers human outcomes. These are what actually drive behavior and spend.”
“Why I love Doha’s Airport”: Digital infrastructure and immersive content help travelers feel valued, informed, and engaged – key emotional drivers in modern airport retail
Anderson opened with a snapshot of 2025—the good, the bad, and the ugly—including heightened trade and economic policy uncertainty. He urged travel retail stakeholders to embrace technologies that align with changing consumption patterns, especially as digital-first, sustainability-minded consumers demand more convenience, personalization, and immersive experiences.
One key area of opportunity is digital signage. He spotlighted Doha International Airport’s immersive storytelling display about local culture as a best-practice case, calling it an example of “tradition meets transformation.” Anderson encouraged the industry to make digital out-of-home (DOOH) advertising more accessible and to maximize its potential through data. “What if we combine digital signage and AI?” he asked. “That’s where real transformation begins.”
30% of travelers say high prices are the main barrier to purchasing in airport retail. Charles Reed Anderson calls on stakeholders to tackle tariffs and build perceived value
He also proposed aligning digital campaigns with dwell time segments and using free social media promotion to extend reach and engagement—particularly as attention spans shrink and in-terminal time becomes more fragmented.
Much of his address focused on the evolving landscape of artificial intelligence. Anderson defined three layers:
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Traditional AI, which automates;
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Generative AI, which creates; and
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Agnetic AI, which acts with contextual understanding.
“Agnetic AI is the next level of what’s coming,” he said. “It understands the concept, the context, and what it needs to deliver. It will transform the way you manage and operate customer interactions.”
Influencer-driven social engagement in travel retail: Keukenhof’s robot barista, Ella, helped draw 1.5 million+ visitors in 8 weeks—an example of how physical retail activations can go viral
In travel retail, he explained, Generative AI is already enabling product recommendations, language translation, customer service engagement, staff training, upsell and cross-sell strategies, and more. “It’s the first technology that truly speaks our language,” he said. “And it’s consumers who are driving this growth.”
Anderson also pointed to Agnetic AI’s potential to educate travelers on tariffs, a long-standing friction point in airport shopping.
Traditional AI improves efficiency; Generative AI empowers faster human output. Travel retail must learn to balance automation with creative potential in customer experience
However, he warned that the industry’s ability to capitalize on AI remains limited by data fragmentation. “Only 17% of retailers have a complete, single view of their customers,” he said. “AI without data doesn’t work.”
He praised Asia Pacific for leading globally in employee involvement with Generative AI, but emphasized that broader collaboration is essential. “The answer to AI’s perception problem is to increase collaboration and engage the ecosystem,” he concluded.
Agnetic AI goes beyond task automation—it understands context and can anticipate needs. In travel retail, this could transform everything from service to sales to education
Ibrahim Ibrahim, Managing Director of Portland Design
Future Ready Travel Retail
Retail futurist and Portland Design Managing Director Ibrahim Ibrahim brought a powerful perspective to the generational shift reshaping travel retail. Author of Future-Ready Retail, Ibrahim called on brands and airports to radically rethink their purpose—not just as sales environments, but as platforms for live experience, creativity, and belonging.
“Consumer expectations are shifting faster than businesses can adapt,” he said, framing the moment as both a challenge and an unprecedented opportunity for innovation across Asia Pacific.
He introduced the six ‘Es’ of experience—engagement, education, entertainment, end use, ease, and exclusivity—as the pillars of future readiness. “Eventise retail” is the way forward, he argued. “The future is live. It’s about purchasing via platforms. We can use airports as a platform to livestream events. Retailers need to think about making entertainment shoppable.”
Wellness, he emphasized, is no longer a standalone category. “It needs to be integrated into every aspect of the business,” he said, citing global research showing that 64% of travelers welcome more health and wellness facilities at airports.
Ibrahim Ibrahim argues that airports must evolve beyond pure sales metrics to track new KPIs like smiles, clicks, shares, and engagement per square meter
He posed a provocative question: How can we integrate retail, food and beverage, and lounges into a seamless, holistic experience?
Ibrahim also challenged brands to see their role in shaping identity and community. “The new competition landscape is about values, ethics, and purpose. People want to be part of brand communities,” he said. With 40% of consumers having stopped using a brand based on its behavior, and a growing embrace of second-hand goods, Ibrahim called on retailers to align with deeper cultural shifts.
He sees micro-influencers as future airport tenants, and airports themselves as the most powerful media platforms for brands, where the physical space becomes a channel in its own right.
“What we need to do in airports is create serendipity machines. We're beyond the era of transaction,” he said.
Ibrahim dismissed incrementalism as outdated. “Incremental improvements don’t work in a world where change is not incremental,” he warned.
Instead, he urged the industry to embrace new metrics for success: ideas, engagement, senses, surprises, smiles, clicks, and shares per square meter—not just sales.
To achieve this, he said, requires more than redesign – it requires a people revolution. “We need to bring in storytellers, content creators, hospitality specialists, event organizers, set designers, data scientists and more,” he said. “This is the team that will shape future-ready travel retail.”
Conductor and leadership expert Jason Lai
Next Generation: Leadership
In the final session of the conference, conductor and leadership expert Jason Lai took to the stage to draw parallels between orchestrating a symphony and leading within a dynamic, fast-paced business environment.
Offering insights on fostering collaboration, inspiring innovation, and navigating complexity, Lai guided the audience through an interactive presentation that explored how leadership can shape the future of travel retail. He focused on how harmonizing diverse perspectives can help businesses deliver more impactful strategies.
Tab Musleh, Chief Retail and Hospitality Officer at Qatar Airways, joins Lai on stage to take part in the interactive session
