why are Airports duty/tax free shops never cheaper than regular shops outside the airport?

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why are Airports duty/tax free shops never cheaper than regular shops outside the airport?

In: Economics

9 Answers

Anonymous 0 Comments

Duty Free has become more of a marketing gimmick or just a shop brand name. Sometimes it is not even actually tax free (e.g. sales tax or VAT still added), sometimes there wasn’t even any duty to begin with, sometimes there is tax or duty saving and the shop just pockets that as profit and doesn’t pass on the saving since tourists either won’t know better or have nowhere else to go.

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