The Philippines is in position to join the ranks of countries whose duty-free industry is expected to grow by an average of 40 percent in the next decade, Tourism Secretary Wanda Teo said.
Teo made the remarks at the recent 2017 Duty Free and Travel Retail Global Summit in Cannes, France.
Teo expressed optimism that global premium brands are now looking to increase their presence in the Philippines in anticipation of the steady growth in arrivals of Chinese tourists.
“Bringing in the global premium brands would be an additional incentive to attract more Chinese tourists, particularly the luxury segment,” Teo added.
In July this year, China nudged out the United States as the country’s second largest tourist market source, next to Korea. Chinese tourists are known to enjoy the Philippines’ outdoor destinations and shopping of premium brands. Bill Casas
Alexandre Callens, Clarins general manager for travel retail for the Asia Pacific, told Teo that with the recent approval and implementation of the Visa Upon Arrival program for Chinese tourists in the country, they will be expanding their presence in the Duty Free Philippines stores.
Callens added Clarins will also be deploying Mandarin-speaking sellers, knowing that beauty products need explaining when being sold.
In a meeting with Herve Ducros, Chanel managing director for travel retail for the Asia Pacific, Teo was informed that the premium brand is set to open a section in DFP in the first quarter of 2018
Ducros said Chanel will definitely attract the big spending tourists, especially the Chinese.
Food maker Mondelez will also increase its presence in DFP outlets because it has historically been a best seller at the Philippine market, company officials said in Cannes.
Teo also met with Anton Huang of Store Specialists Inc., Chim Esteban, a longtime supplier of cologne and beauty products; and Robert Colombo of CMK, a liquor supplier.
Joining Teo at the summit were Tourism Undersecretary Benito C. Bengzon, Jr., Duty Free Philippines Chief Operating Officer Vicente Pelagio Angala, and DOT Assistant Secretaries Arlene Mancao and Frederick Alegre.
The Cannes summit is the flagship event of the Tax Free World Association, where thousands of delegates gather in October for a week of business and networking.
The much-attended duty free industry event combines a shop window for premium brands with an experts’ forum and the chance to network with key influencers. This year, 515 companies registered as exhibitors based across 472 stands, an increase of 4.7 percent from 492 in 2016.
The show expects to outdo last year’s 6,500 delegates and 6,400 visitors with the launch of the new Digital Village, which showcases how new technologies can be utilized in duty-free and travel retail.