Duty Free Philippines Corporation Chief Operating Officer Vicente Pelagio Angala.

Duty Free Philippines Corporation (DFPC) has doubled its annual sales growth to 4% in 2019.

Consolidated sales exceeded $226m last year from $217m in 2018.

According to DFPC Chief Operating Officer Vicente Pelagio Angala, the hosting of the Southeast Asian Games in the Philippines and opening of Duty Free Luxe contributed to the significant upswing. He also indicated that the growing number of tourists visiting the newly-rehabilitated Boracay Island via Kalibo Airport helped boost DFPC sales.

Filipino tourists, balikbayans or visiting Filipinos who live overseas and overseas Filipino workers remained the top source market with a share of 85%.

Confectionery is still the major growth driver, comprising 31% of total sales. Liquor, fragrances and cosmetics and fashion merchandise account for 21%, 18% and 10% respectively.

KEY MILESTONES

DFPC, which recently signed a memorandum of understanding with the Bureau of Immigration to introduce an online validation system, achieved several key millstones last year including the opening of Go Lokal’s Marahuyo in November.

The opening of the Luxe Duty Free downtown shop contributed to the increase in sales for Duty Free Philippines in 2019.

Angala said: “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.”

The initial collection featured at Marahuyo demonstrated the country’s creativity as the pieces are distinctly Filipino.

Recognising the agency’s strong commitment to giving local products a global audience, DFPC was highly commented in the CSR Initiative of the Year category at last year’s Frontier Awards in Cannes, for supporting The Micro Small & Medium Enterprises.

“We have always recognised the vital role that we play in making the Philippines become a globally recognised quality destination. 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,” Angala commented.

In the meantime, DFPC has expanded its list of exclusive brands which includes, Gucci Beauty, Armani Beauty, Hogan and MCM.

Confectionery remains a major growth driver for Duty Free Philippines, comprising 31% of total sales ahead of categories such as liquor and fragrances and cosmetics.

In 2019, DFPC also renovated its Fiestamall and Ninoy Aquino International Airport Terminal 1 arrival stores.

Angala added: “Before the end of 2019, we unveiled the newly-renovated Fiestamall. The elegant and more functional design will welcome customers particularly the remodelled food court, building facade, Customer Relations Registration lobby and tourist lounge.”

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 in the first quarter.

A government corporation, the company is the country’s sole operator of the duty and tax free merchandising system. DFPC is 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.