Chinese tourist influx draws global premium brands to Duty Free stores

MANILA, Philippines — The Department of Tourism (DOT) plans to bring in more global premium brands into the country’s duty free industry to cash in on the growing number of Chinese tourists.

In a statement, Tourism Secretary Wanda Tulfo-Teo said the Philippines is in a position to join countries where the duty free industry is expected to grow by an average 40 percent in the next decade.

Teo, who was recently in France for the 2017 Duty Free & Travel Retail Global Summit held in Cannes, expressed optimism global premium brands are now looking to increase their presence in the country in anticipation of the steady growth in arrival of Chinese tourists.

“Bringing in the global premium brands would be an additional incentive to attract more Chinese tourists, particularly the luxury segment,” Teo said.

China has outranked the US as the second largest source market in the month of July, the DOT said.

In the first half of 2017, China accounted for 13.55 percent of total arrivals with 454,962 visitors, making it the third top source market for the country.

For this year, the tourism department is expecting Chinese tourist arrivals to hit the one million mark.

“Chinese tourists are known to enjoy the outdoor destinations and shopping of premium brands,” the DOT said.

During her visit to France, Teo said she met with representatives from various global brands including Chanel, Clarins and Mondelez.

In fact, Clarins general manager  for travel retail for the Asia Pacific Region Alexandre Callens said with the recent approval and implementation of the Visa Upon Arrival (VUA) for Chinese tourists in the country, they will be expanding their presence in Duty-Free Philippines (DFP) stores.

Meanwhile, Chanel managing director for travel retail for the Asia Pacific Region Herve Ducros said the company is set to open a section at DFP in the first quarter of 2018.

The DOT reported that Mondelez will also expand its presence in DFP outlets as its food products are traditional bestsellers in the Philippine market.