Airport alcohol restrictions could ‘hamper’ travel retail
The UK government’s plan to restrict alcohol sales at airports could add “unnecessary red tape and costs” to the retail and leisure industries, a law firm has argued.
Airlines have called for curbs on excessive drinking at airportsUK ministers are planning to extend the Licensing Act 2003 to cover airside alcohol sold to passengers before they board flights.
The change would allow local councils in England and Wales to inspect airport bars and restaurants in the same way as other licensed venues, and potentially restrict when alcohol is served.
A stark rise in the number of disruptive traveller incidents in the UK has sparked calls to curb alcohol sales at airports.
London-headquartered law firm RPC said the restriction would result in airports being required to pay a range of new costs including business rates, late night levy and license fees.
Business rates would hit airport bars “particularly hard” as they would likely have to pay rates based on the value of the entire airport rather than just the venue’s area. Rates for alcohol supply businesses can be up to £1,905 (US$2,458) for the first year, and £1,050 (US$1,355) per year after that. The late night levy could add costs of up to £4,400 (US$5,678) a year.
RPC also said that the restrictions “would be considered poorly-timed by many operators” due to the level of job losses in the sector last year.
Ciara Cullen, partner at RPC, said: “The success of British airports as retail destinations has been the envy of the world over the past decade. It is worrying that the government is considering hampering that by increasing their red tape and cost burden.
“UK airports have done a fantastic job of ensuring tourists begin their foreign holiday spending in the UK and not overseas. Given the pressures the sector is facing, both retailers and airports will be wondering why the government would want to make that more difficult.
“While reducing drunkenness on flights would undoubtedly be a good thing, there are surely other ways of dealing with the issue without restricting the huge majority of people who do drink responsibly.”
The government’s consultation will close on 1 February 2019.
RPC has recently published its Retail Compass publication, which aims to help retail businesses plan for legal and policy changes over the next six months.
