Silvio Pettirossi International Airport (AISP) in Asunción, Paraguay’s main air gateway, is undergoing a complete modernization, including extensive remodeling and structural expansion. A new boarding area inaugurated last November increased security capacity four-fold and more than tripled the immigration rea—all of which will help the airport meet international standards and enhance passenger services as the country welcomes new air routes and attracts more international traffic.
The project, driven by the National Directorate of Civil Aviation (DINAC), constitutes the largest investment in Asunción’s airport infrastructure in years.
The airport improvements are driving new business at Luryx Paraguay, the duty free concession operated by Panama-based Top Brands International, which acquired the previous operator, Bright Star Duty Free, in 2017.
“Luryx has been operating in Asuncion Airport since 2017, when we bought one of the previous duty free operators. A few years later, in 2022 we won the tender to be the sole duty free operator [in the airport] and invested more than $3 million in a new 1,000 sqm walkthrough store with a ten-year contract,” Antonella Nuovo, Luryx Paraguay country manager tells TMI’s John Gallagher.
The current airport improvements are all aimed at enhancing the traveler’s experience, she explains.
“The airport authorities have expanded the boarding area by constructing more than 2,000 square meters in the zone and have also introduced new equipment in the security check and migration areas, substantially improving two major bottlenecks. Both areas have gained additional space, allowing passengers to move through much more quickly and giving them more time to relax and shop before boarding their flights.”
The improvements come as Paraguay is attracting much greater international attention.
“Although Asunción has many attractions it is not a bona fide tourist destination, but more a business destination. We are amid a real estate boom with a lot of building work everywhere. The city has also been turned into a hub for conventions and a major hub for sports events. Recently, we have seen the Pan American games, international rally championships and a venue for major soccer matches.
“All this means that traffic at the airport has increased in recent months. In the first three months of this year international passenger movement increased by 25% and this has had a very positive increase in sales at our store,” says Nuovo.
Fragrances dominate sales at Luryx, accounting for 50% of total sales, she says.
“The importance of the category has also increased as we incorporate niche brands such as Xerlof, Parfum de Marly, Nitio along with Korean skin care brands and Arab fragrances.”
The perfumes and cosmetics category is followed by liquor, chocolate and electronics, she says.
“In recent months we have seen more interest in malt whiskies and the Dubai chocolate sensation has arrived in Asuncion as well, bringing about a significant increase in confectionery sales.”
Luryx operates an arrivals store in Asuncion, but Nuovo notes that passengers prefer to purchase in the departures area and use Luryx’s pick-up service upon arrival.
“Our pick-up on arrival system allows our frequent travelers to buy when they leave on a trip and pick up their order upon their return to Paraguay. An increasing number of passengers travel with carry-on luggage only and have nowhere to keep duty free purchases when they travel. The Reserve and Collect system works very well and we are seeing a significant sales increase here month by month.”
While Luryx sales are 100% airport based, Nuovo points out that Paraguay also has a strong travel retail presence in several Paraguayan border towns.
“Ciudad del Este, Pedro Juan Caballero and Salto del Guairá are key cities for shopping tourism and have allowed Paraguay to create a leading position as the most important shopping destination for shoppers from Brazil and Argentina. Competitive pricing and the growth in regional tourism have allowed many entrepreneurs to build bigger and better shops, providing great shopping experience for tourists.”
Nuovo says that Lurxy has no immediate plans to expand to the border in Paraguay, the group has high expectations for the new 2,700 sqm two-level border store Luryx opened in Foz do Iguaçu, Brazil.
