Tourism dep’t studying possible privatization of Duty Free stores

THE Department of Tourism (DoT) said that it is undertaking a review of Duty Free Philippines’ (DFP) operations to improve the retailer’s performance, with a decision on privatization possible.

At the department’s budget hearing at the House of Representatives on Wednesday, Undersecretary Arturo P. Boncato, Jr. said changes to DFP’s business model, an attached agency, are being studied.

“Duty Free is in the process of conducting a study to look for the best model in terms of moving it forward,” he said.

He added that the study will take several months and will evaluate all store sites.

“The study is going to take several months but this is going to be a comprehensive study that will take a look if the Duty Free is best for franchise or for privatization and the like,” he stressed.

Mr. Boncato said visitor arrivals totaled 5.9 million in the nine months to September, up 10% from a year earlier, highlighting the need to make DFP more competitive.

“This is in addressing the concern not only the quality of our stores but the continued increase in arrivals so it should follow that we have a continued increase in revenue from Duty Free,” Mr. Boncato said.

The DoT said it is seeking to increase the local content of stores for departing passengers.

“We noticed there’s a lack of local products sold for people leaving the country. There are fewer local items at the departure sites. We have started with local chocolates and they are strategically placed in our departure sites,” he said.

Last month, DFP opened its newest site, Luxe Duty Free in Pasay City. —