PHILIPPINES. State-owned Duty Free Philippines (DFP) mounted a strong post-COVID resurgence in 2023 with sales rising by +53% year-on-year to around US$102 million.
This year DFP is targeting a further increase of +64% to US$167 million.
Confirming the figures to The Moodie Davitt Report, DFP Chief Operating Officer Vicente Pelagio A. Angala praised the supportive approach of Department of Tourism Secretary Esperanza Christina Codilla Frasco, who he said is very aggressive in terms of marketing the country and the duty free sector. DFP is part of the Department of Tourism.
“We struggled to rise to the occasion but demonstrated our strength and resilience as an organisation that can adapt and improve,” said Angala of the testing conditions the corporation has faced in recent years.
DFP said it has navigated through unprecedented challenges, deftly balancing the complexities of operational cost management and the pursuit of heightened sales opportunities.
In pre-pandemic 2019, DFP generated sales of US$226 million, driving a PHP464 million (US$8.2 million) contribution to the Department of Tourism for government tourism programmes and projects.
DFP is set on a path of business recovery, the company said. It pointed to a “remarkable resurgence” driven by a steady increase in sales, particularly in top categories such as chocolates and confectionery, spirits and wines, and perfumes and cosmetics.
In a dedicated effort to showcase local products to international travellers, DFP achieved sales of US$3.3 million from Philippine items in 2023, a +312% increase year-on-year.
Collaborating with the Department of Trade and Industry, the company is committed to featuring and representing Philippine culture and craftsmanship, DFP said.
To enhance consumer accessibility to duty free goods, the company resumed its operations in Bacolod-Silay, Kalibo, and Iloilo international airports, with plans for additional stores at Clark Terminal 2 and the introduction of an online shopping platform.
“Thank you to all our loyal customers, our modern day-heroes, the OFWs, balikbayans, and their families for their love for pasalubong shopping. Indeed, it is our love for family that excites us to experience pasalubong shopping at Duty Free Philippines,” said Angala. ✈
