The global tourism business continues to face headwinds on multiple fronts, whether it be ongoing conflicts, rising geopolitical tensions, soaring operational costs, or the spiralling impact of climate change. Yet, despite these significant challenges, 2025 is shaping up to be a bumper year for many tourism-related markets, underlining the sector’s resilience and providing comfort to the travel retail business.

According to figures from the World Travel & Tourism Council (WTTC), international visitor spending is forecast to reach a historic $2.1tn in 2025, surpassing the previous high of $1.9tn in 2019 by $164bn. Many popular destinations are experiencing record-breaking numbers – Turkey, for instance, hosted a record 26.39 million visitor arrivals in the first half of the year, while Cyprus recorded a 27.2% jump in tourism revenues to €955.8m in the first five months.

More people flying is obviously great news for travel retailers. In July, Dubai Duty Free enjoyed record monthly sales of $175 million, a 9.7% increase on the same period last year. Sales of liquor, the travel retailer’s second most important category after perfumes, rose 1.7% for the month, but there were much higher figures for other sectors, such as gold (+15.5%) and confectionery (+57%).

Growing numbers of wealthy middleclass Indian travellers flying through Dubai make it an increasingly important location for Indian drinks companies. A case in point is Piccadily Agro Industries, which has just launched two exclusive expressions of its Indri single malt whisky exclusively with Dubai Duty Free, priced at around $150 each. The limited-edition Dubai Duty Free Series features a Sauternes Cask release, restricted to 210 bottles, and an Oloroso Sherry Cask-matured single malt, limited to 348 bottles.

US downturn

Not every tourism market is thriving, of course. Most notably, fallout from the policies of the Trump-led US administration continues to impact the country’s tourism sector, with international overnight arrivals to the country down 3.4% in June. Land crossings and air arrivals from Canada plummeted a much steeper 28%, a continued decline which has led to an existential crisis for Canadian duty free border retailers.

Despite the marked downturn, the US travel retail market continues to attract the attention of the big drinks multinationals. In July, for instance, The Macallan opened a 92sqm boutique at Los Angeles airport’s Tom Bradley International Terminal (TBIT). Located next to upscale luxury stores such as Gucci and Burberry, The Macallan store joins a growing global airport boutique network that includes standalone shops at London Heathrow, Taipei Taoyuan, Dubai and Hainan’s Haikou International.

The new shop was designed by acclaimed architect James Forbert. Its look is inspired by The Macallan’s latest retail concept, Nurtured by Nature, incorporating natural materials such as wood and copper to link back to the distillery’s famously small stills and signature oak casks. A wave wall nods to the futuristic design of The Macallan’s Speyside distillery roof, while a wall of Albariza brick, made from the same white soil used for Jerez sherry grapes, reinforces the brand’s deep links to sherry-seasoned oak casks.

The new store, The Macallan’s first permanent store on the West Coast of the US, stocks a wide range of either rare or exclusive expressions, including the travel retail-exclusive Colour Collection, The Macallan M Collection, The Macallan Horizon (developed in partnership with Bentley Motors), and Tales of The Macallan Vol 2, a 73-year-old release honouring founder Alex Reid.

The new Macallan store should benefit from two big upcoming sporting events hosted by the US: the FIFA World Cup next year and the 2028 Summer Olympics. LAX’s position as one of the country’s key airports should see it enjoy a big uptick in passenger traffic, but at the moment, the Californian hub is suffering from a marked traffic downturn. Passenger numbers at the TBIT were down 5.46% over the first six months of the year.

Adding quality and depth to the US travel retail drinks sector is a new, world-class spirits programme from F&B specialist HMS Host, part of Swiss travel retail behemoth Avolta. Rolled out across 20 airports in nearly 50 on-premise venues, the Connoisseur’s Collection introduces travellers to an exceptional range of rare and premium spirits in bars and restaurants.

Curated to evoke the intimate allure of a modern speakeasy, the Connoisseur’s Collection features brands such as The Balvenie 21, El Tesoro Extra Añejo tequila, Belvedere 10, and Drumshanbo Gunpowder Irish gin. A particular highlight is the more than 50 private-label barrels of bourbon from Jefferson’s and Maker’s Mark, hand-selected exclusively for HMS Host guests. Expert mixologists are on hand to guide travellers through the tasting experience, reinforcing the premium positioning of the offer.

In an age when consumers are seeking deeper experiences and higher quality at every touchpoint of the journey, the travel retail drinks industry continues to respond with creativity, premiumisation and flair. From curated tastings in US airport bars to exclusive single malts in Dubai and boutique openings in Los Angeles, the global travel drinks business is trying to stay relevant to an increasingly sophisticated, discerning customer base, despite significant ongoing challenges.