Duty-free in the U.S. has long been criticized for its dim, dusty stores and poor quality merchandising. But an improving U.S. economy and an influx of foreign travelers from countries such as China and Brazil are encouraging retail operators in U.S. airports to make improvements, according to BW Confidential.

While inbound tourism to North America was up by just 3% in 2011 to reach 100 million tourists, according to UNWTO, inbound traffic to the U.S. from Brazil, China and India combined increased by 110% between 2000 and 2010.

Paul Petit, Beauty and Lifestyle Division President of Miami-based distributor Actium, said, “The North American business is slower, but there are real initiatives happening, as retailers see airports in Europe and Asia become luxury shopping malls.”

José Chao, travel retail veteran and president of U.S.-based distributor Horizon International Duty Free, a newly-founded company, which distributes Parlux fragrances in U.S. duty free, is also upbeat. “The U.S. duty-free market is doing a good job of re-negotiating to get more space, and retailers need to up their game—they are now seeing that Singapore and Hong Kong are the real competition, not Chicago and Cincinnati,” he explained.

Retail operator changes at airports in Atlanta, Los Angeles, Orlando and Miami could also begin to alter the duty-free store landscape.

To read BW Confidential’s full report on the US duty-free market go to: www.bwconfidential.com