DFPC Chief Operating Officer Vicente Pelagio A. Angala said that the Philippines’ hosting of the Southeast Asian Games (held on 30 November-11 December 2019) and the opening of upscale downtown store Duty Free Luxe contributed to the “significant upswing”.
A sustained Chinese tourism boom also boosted sales. A total of 1,359,817 visitors from China came to the Philippines from January to September alone in 2019, compared with 1,255,258 in the whole of 2018.
Angala noted that the growing number of tourists visiting the newly-rehabilitated (after temporary closure for environmental reasons) Boracay Island via Kalibo Airport had helped DFPC sales.
Filipino tourists, balikbayans or visiting Filipinos who live overseas, and overseas Filipino workers (OFWs) remained the top source market with an 85% share.
Confectionery is still the major growth driver, with a 31% share of sales, followed by liquor (21%), fragrance and cosmetics (18%), and fashion merchandise (10%).
Angala noted that DFPC met several significant milestones last year including the opening of destination merchandise concept Go Lokal’s Marahuyo in Duty Free Luxe in November.
“In line with the directive of Department of Tourism Secretary Bernadette Romulo-Puyat and in partnership with the Department of Trade and Industry, we have augmented our product portfolio which now includes more local artisans,” said Angala.
The initial collection featured at Marahuyo shows the country’s creativity as the pieces are distinctly Filipino, he added.
With the agency’s strong commitment to giving top local products a global audience, DFPC earned a ‘Highly Commended’ accolade for CSR Initiative of the Year at the 2019 Frontier Awards in Cannes, France for supporting Micro Small & Medium Enterprises (MSMEs).
“We have always recognised the vital role that we play in making the Philippines become a globally recognised quality destination,” said Angala. “To realise that vision, we have officially launched Duty Free Luxe. It is a downtown store that will put the Philippines as a top-of-mind shopping destination to boost the country’s shopping tourism.”
DFPC has expanded the list of exclusive brands that it carries at Luxe, which now includes Gucci Beauty, Armani Beauty, Hogan and MCM.
In 2019, DFPC also embarked on the long-awaited renovation of the downtown Fiestamall and Ninoy Aquino International Airport Terminal 1 arrival stores.
“Before the end of 2019, we unveiled the newly-renovated Fiestamall. The elegant and more functional design will welcome customers, particularly the remodeled food court, building façade, Customer Relations Registration lobby, and tourist lounge,” Angala commented.
DFPC is expected to maintain the momentum in 2020 with the opening of a duty free store at the Hilton Sun Valley Resort inside Clark Freeport Zone by the end of the first quarter.
DFPC is the country’s sole operator of the duty and tax free merchandising system. As a government corporation, it is considered a vital component of the Department of Tourism through its contribution to the development of the country’s tourism infrastructure, programmes and projects through revenue remittances.
