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Cross-channel operators hit by 12% slump


CROSS-Channel operators have admitted suffering a 12% slump in passenger volumes in the three months following the abolition of duty-free on July 1.



Eurotunnel reported passenger shuttle traffic had fallen by 12% to 853,500 cars and 19,500 coaches in the third quarter.



It also announced a 74% drop in revenue from retail and other activities to £11.1m in this period.



The company said limited price increases were likely in the future to compensate for the end of duty-free sales.



A P&O Stena Line spokesman said it had experienced a fall in traffic “broadly in line” with its rivals. However, its results are not due out for another three weeks.



“What we have seen is a considerable hardening of ticket prices since the end of duty-free and that has been very encouraging,” the spokesman said.



Meanwhile, ferry operators have met with Customs and Excise officials to discuss the sale of duty-paid goods at sea at lower overseas rates.



Temporary permission has been given to complete transactions within English waters, but this could be withdrawn from the end of March next year.


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