MANILA - Duty Free Philippines Corporation (DFPC), an attached agency of the Department of Tourism (DOT), revealed that it has reached USD 54.1 million in sales for the first seven months of 2023.
Based on its latest data released on August 11, the DFPC said the figure accounts to 43.8 percent of its sales target of USD 123.5 million this year.
Before the global pandemic, the firm was able to achieve USD 226.3 million in sales in 2019 but as borders shut down and leisure travelling was prohibited, DFPC sales slid to USD 62.5 million in 2020, USD 34.5 million in 2021, and USD 67.3 million last year.
DFPC is now hoping to make a rebound and reach USD 204 million in sales by 2025.
“The target for the return to pre-pandemic is 2025. Ngayon medyo nakalabas na sa survival, the fact that (we are) now operating in 2023 (means) naka-survive na kami. Kaya lang ‘yong pag-continue para maka-reach ng level ng pre-pandemic that’s a different challenge (We can say we’re past survival stage based on the fact that we are now operating in 2023. But the matter of reaching the pre-pandemic level figures, that’s a different challenge),” said Atty. Rosalie Dinoy of the DFPC Legal Affairs Office.
“For now, mayroon ding movements in the offices so ‘yon yong mga measures to make sure that the business is profitable. We want to have Duty Free gain back its stature in the past— dati kasi ‘pag may dumating magdu-Duty Free, excited sila, gusto namin bumalik iyon (there is also movements in the offices so those are the measures to make sure that the business is profitable. We want to have Duty Free gain back its stature in the past— back then people are excited to shop whenever they return to the Philippines) ,” she added.
For now, the firm is in the process of getting suppliers to make sure that when tourists arrive, Duty Free shops have merchandise to sell.
Dinoy confirmed that DFPC has been facing supply chain woes with almost every industry facing similar challenges worldwide.
“May problema rin sa supply chain, I think production-wise and also allocations (There are problems in the supply chain, I think production-wise and also with the allocations). Of course, you’ll go first to big ones,” she explained.
Amidst the challenges, Dinoy said the DFPC is working on improving its shops, with one expected to open soon in Bacolod-Silay International Airport.
The firm, on the other hand, declined to comment on the restructuring within the company.
Dinoy said that the firm is optimistic and will bounce back moving towards the holiday season, specifically in December - a key holiday month in the country where arrivals are expected to peak.
“I am optimistic. ‘Pag dating ng December iba ang share ng sales niyan, mataas talaga ‘yan dahil yong Christmas ay cine-celebrate sa Pilipinas. Malaki ang share sa -ber months (When December comes, the share of sales is a bit different, it’s really high because Christmas is celebrated here in the Philippines. The share during -ber months are often high),” said Dinoy.
DFPC, for its part, vowed to fully support mechanisms that will bring in more tourists to the Philippines, including the VAT refund.
“We will always support programs of the government that will bring the tourists in the Philippines,” Dinoy said. “It will be complementing the shopping campaign to boost tourism in the Philippines.”
The DOT under Marcos administration seeks to develop the country’s shopping tourism as Balikbayans and foreign tourists start pouring in after months of lockdown due to the pandemic.
Tourism Secretary Christina Garcia Frasco earlier said the passage of the value-added tax (VAT) refund measure for non-resident visitors would also boost the said tourism product and contribute in the sector’s recovery.
Duty Free Philippines stores are located at the Fiesta Mall in Parañaque; Ninoy Aquino International Airport Terminals 1, 2, and 3; Luxe at SM Mall of Asia; Mactan Cebu International Airport; Iloilo International Airport; Kalibo International Airport; Clark International Airport and Hilton Clark Sunvalley Resort.
