Duty Free doubles growth rate in 2019
Duty Free Philippines Corporation (DFPC) has doubled its year-on-year sales growth to +4 percent in 2019 compared to +2 percent in 2018.
DFPC has maintained its strong growth trajectory as the agency’s consolidated sales reached more than $226 million in 2019 from $217 million in 2018.
According to DFPC chief operating officer Vicente Angala, the Philippines’ hosting of the Southeast Asian Games and the opening of Duty Free Luxe have significantly contributed to the upswing.
He also noted that the growing number of tourists visiting the newly-rehabilitated Boracay Island via Kalibo Airport has been beneficial to DFPC sales.
Filipino tourists, balikbayans or visiting Filipinos who live overseas and overseas Filipino workers (OFWs) remained the top source market with a share of 85 percent.
Confectionery is still the major growth driver, with 31 percent share of total sales, followed by liquor (21 percent), fragrance and cosmetics (18 percent) and fashion merchandise (10 percent).
DFPC met a number of significant milestones last year, including the opening of Go Lokal’s Marahuyo in November.
“In line with the directive of Department of Tourism (DOT) Secretary Bernadette Romulo-Puyat and in partnership with the Department of Trade and Industry (DTI), we have augmented our product portfolio which now includes more local artisanal items,” said Angala.
The initial collection featured at Marahuyo shows the country’s creativity as the pieces are distinctly Filipino.
With the agency’s strong commitment to giving top local products a global audience, DFPC was recognized as “Highly Commended CSR Initiative of the Year ” at the 2019 Frontier Awards in Cannes, France for supporting micro small & medium enterprises (MSMEs).
“We have always recognized the vital role that we play in making the Philippines a globally recognized quality destination. To realize 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,” said Angala.
DFPC has expanded the list of exclusive brands that it carries, which now includes Gucci Beauty, Armani Beauty, Hogan and MCM.
In 2019, DFPC also embarked on the long-awaited renovation of the Fiestamall and NAIA Terminal 1 Arrival stores.
DFPC is expected to maintain the momentum in 2020 with the opening of Duty Free store at the Hilton Sun Valley Resort inside Clark Freeport Zone by the first quarter of this year.
DFPC is the country’s sole operator of the duty-and tax-free merchandising system. As a government corporation, it is a vital component of the DOT as it contributes to the development of the country’s tourism infrastructure, programs and projects through revenue remittances.
