Someone at the airport probably stole it.
As far as the whole gift thing goes, he probably expected you to haggle with him. In many cultures, a gift will be offered, but you are expected to refuse it, or insist on paying. They will then insist that it's really free. You insist that you must pay, etc... That will go back and forth for a while till eventually they "cave in" and accept payment. I think it's something to do with not wanting to appear greedy or something...