DOT targets 40% growth in duty free sales

CEBU, Philippines — The Department of Tourism (DOT) which operates the Duty Free Philippines, expects to generate an average of 40 percent growth in the next few years.

Tourism chief Wanda Teo made this announcement following the good momentum of foreign brands coming in and have expressed interest to enter the Philippines, through their presence in Duty Free stores.

The promising number of Chinese tourists, who are known as huge spenders for premium brands, are now one of the top reasons why international signature names are making their presence felt in the Philippine shopping landscape.

According to Teo, with this development, the Philippines is in a good position to join the ranks of the Duty Free industry in the world, which constantly post high-level growth.

Teo, who recently attended the 2017 Duty Free & Travel Retail Global Summit in Cannes France, said that bringing in the global premium brands would be an additional incentive to attract more Chinese tourists, particularly the luxury segment.

Central Visayas posted a high of 77.86 percent growth of Chinese visitors for the first four months of this year.

DOT-7 record showed that a total of 126,000 Chinese visited the region from January to April this year, a good indication of an upswing momentum.

China is the third top market for tourists following Korea, which ranked first and Japan which landed on the second spot.

Teo added that Channel, Clarins, and other premium beauty and fashion names, including Anton Huang of Store Specialists Inc., (SSI), already expressed their plans to expand presence in the Philippines, particularly in Duty Free shops.

Clarins general manager for Travel Retail for the Asia Pacific Region Alexandre Callens also met with Teo saying the company is expanding their presence in the Duty-Free Philippines (DFP) stores, following the recent approval and implementation of the Visa Upon Arrival (VUA) for Chinese tourists in the country.

Likewise, Chanel Managing Director for Travel Retail for the Asia Pacific Region Herve Ducros said that they are set to open a section in DFP in the first quarter of 2018.

Mondelez food products will also increase its presence in DFP outlets.

Cologne and beauty products supplier, Regent Asia, also announced its plan to expand its products' presence in DFP shops.

Meanwhile, DOT consultant Robert Lim Joseph urged retail or shopping facilities to start expanding high-end inventories including signature and luxurious brands in preparation the shopping fanatics — Chinese tourists.

This is the call made by tourism advocate Joseph as the influx of Chinese tourists to the Philippines in the next few months is apparent.

Although most of apparel, jewelry, bag, shoe and other products are made in China, Joseph said the Chinese travelers splurge more on shopping during their travel outside of their home country. (FREEMAN)