Recently, a new Duty Free Shop was opened in Davao. While it is at the airport, as you would expect, it is located about as far away from the terminal building as you can get while still being on the airport grounds. In the past, when there was a Duty Free Shop in Davao, it was more of an outlet where wealthy locals could find a lot of imported products for sale.
You see, as I think I have alluded to before here, one thing that is lacking in most of the stores around Davao, and really all of Mindanao is being able to find quality goods in the stores. Things have, over the years, been improving on this front, but it is still not up to what it should be.
While I had read in the local newspaper some time back that a Duty Free Shop was opening in Davao, I had forgotten about it. Today, though, Feyma and I had to go to the airport to pick up a friend who was arriving in town. When we got there, we noticed the new Shop, and we decided that after we picked up our friend, we would go over and check the place out. As I mentioned, there used to be a Duty Free Shop in Davao, although it was closed down maybe about 4 years ago. I have never heard any official reason why it was closed down, but I have heard a lot of gossip that there was some kind of impropriety going on there, but honestly I know nothing more than rumors. At that time, the Duty Free Shop was in a local Hotel (Grand Regal Hotel). It was never a place that tourists would go to, although that is what the name implied, but rather a place where locals shopped. Feyma and I used to go there and get goods from the USA that were not available in the regular stores here. While I’ve never been a shopper of Duty Free goods when traveling, this place did get our business simply because they had goods that we wanted to buy.
Well, earlier today, we did go and check out the new Duty Free Shop. It was a beautiful place, and they had a ton of imported goods that could not be find elsewhere. The first thing that shocked me was that when I looked at the price tags, the prices were so cheap! Oops! I looked at it expecting to see Peso prices, and there is a $ sign in front of the price! Yikes! It’s not cheap, it is super expensive! We saw stuff there that was $50 for an item where we could find a local equivalent for under $10. Feyma and I looked at each other, rolled our eyes, and while we did stay and check the place out, we didn’t buy anything!
After we left, and were walking to the car, I told Feyma that I think the prices were not so outrageous, but rather we had been living here so long that we were already used to the local prices! After we thought about it, we realized that at the old Duty Free Shop the pricing was also in Dollars. We were short term residents at the time when we used to shop at the Duty Free, now we are long term residents! We have become used to the pricing that one can expect here. Now, we shudder at the thought of paying the prices that we would have gladly paid when we first moved here, or when we were still in the States.
I can’t imagine what we would think if we took a trip back to the States to shop! I am thinking that we wouldn’t buy very many items!
Ron LaFleur
You would I am sure be shocked although maybe not as much as you might think. Inflation has been relatively low the past few years-that is not to suggest that consumer products have not risen. I have nothing to compare prices with so I cannot give you any startling facts. I would suggest that consumers become used to the prices and we basically accept the price for what it is. I know that when I am there I am suprised (pleasantly) by how much further my money goes. Today the government reported that Social Security recipients would receive a 2.4% increase in their benefits. That reflects the lowest increase in a very long time. The justification was that inflation has been low. As always an interesting post to read. Thanks. Ron
Bob
Hi Ron LaFleur – I think that even if the prices were the same as when we left, we would be shocked at them, simply because we have come to the point where the prices here are what we expect now. That is the norm for us. It would be quite interesting to see our reaction if we were to go back, though! ๐
Bruce
Bob,
To me, Duty Free is at airports and only avaliable to international travelers. In the shop you are buying products and not paying any sales tax. That is why it is for international travelers, so it is not taked out of the local airport without taxes being taken.
If that is the case, how does Duty Free work there if you can just buy?
Bob
Hi Bruce – My past experience is just like yours. It's something that is in Airports and reserved for international travelers. However, here in the Philippines, it seems different. Duty Free Shops are located in all kinds of locations that aren't even near an airport! Under the rules, I believe that you are supposed to show an airplane ticket stub from an international arrival, however in my experience this is often overlooked.
Louis
I went to the duty free in the Waterfront Hotel in Cebu. The only thing I left with was a bottle of good French Cognac because I just can't find it anywhere else. I've always been tempted to buy a bottle of Johhny Walker Blue Label. Everything else, they can keep. The prices are outrageous unless you buy the stuff on a regular basis locally and just can't live without the imported stuff.
Bobby
In the Philippines Duty Free means. Duty free for the owner/operator of the store. There are alternative cheaper sources for the products that they sell.
AmericanLola
It is always pretty shocking when we go back to the States and begin calculating the prices into pesos… but since we can't use pesos, we adjust and begin spending those dollars! Sigh.
Bob
Hi Louis – You are absolutely right! I think it's best to steer clear of the Duty Free unless you have plenty of money and they have some product that you can't live without.
Bob
Hi Bobby – I am aware that some of the products at the Duty Free can be found in other stores, but the majority of the products are not available in other stores that I can find. If you know of some places selling those products, please share!
Hi AmericanLola – I guess the secret is to just go with the price whether it is $ or P, don't convert to the other! That will save a lot of heartache and worry! ๐
Corey
Cebu appears to quickly becoming a mecca for fine imported gourmet foods primarily from Italy and Germany. There are at least 5 wholesale companies I have heard of importing fine Italian food products and wines. I think they also sell to the public from their warehouses. I purchased from one such company called Corte Fiotita email: [email protected] They have
I am wondering where the high end restaurants in Davao are getting their products. Perhaps their suppliers can become a source for those livingi n Davao. Maybe with enough demand someone will open a place.
As for whatever duty free items is being discussed here, where there is a will there is a way. One large balikbayan box shuld do it LOL lets co-op one
Bob
Hi Corey – Quality foods are not really a problem, we do have plenty of such items available, especially European (primarily Italian also) stuff. There are several outlets for such items. Most of the items that I am talking about are non-food things, and a few that are foods are specifically American brands, which are less available.
John H
Hi all
The government inflation rate is a make believe number. I can give you specific examples of inflation being out of control here. 3 years ago I could go into Aldi's and by canned salmon for 89 cents now it is $1.59. Corn was 5 cans for a dollar now its 35 cents. These aren't isolated things everything in the store is still the same brand and often close to double what it cost 3 years ago. The reason the gov. statistics are way off is they change the way it is figured regularly this started when Regan was president. Up until then the gov. used the same scale for several decades now it often changes annually.
Of course food isn't included in the new calculation method so it doesn't reflect this. What is included? Electronics and the whole host of cheap imported Chinese goods. As everyone knows as technology improves you get a better value on electronics they cause the rates to look artificialy low.
As I write this the dollar is at an all time low down nearly half a point today. So what will happen when imported goods start to double too? I suspect we will see another change in the way inflation is calculated. It makes it a lot cheaper to pay government benefits with inflated low value dollars.
If you want to know the real inflation rates google 'real inflation rates' or something similar. By most peoples calculation it is between 6 and 12 percent depending on who you listen to. What is it by the old gov. calculation? If I recall correctly about 10% I don't have time to search it at the moment.
John H
Bob
Hi John H. – I have heard this from many people over the years, and it's quite interesting. My experience in the States over the 80s and 90s was that inflation truly was low, but I can't speak about the time since 2000 since I was not there. I do know that the inflation here is much higher than the government says, though.
Louis
Inflation is always higher than what the gov says. If the rate isn't what they want it to be then they simply change the formula until they get the "right" number. My wife remembers when you could buy rice for less than 10P a kilo and I remember going to the matinee when I was a kid for less than $1.
Bob
Hi Louis – Sometimes I wish that in my life I could just make up my own formulas and edit them as needed! ๐
Cheryll Ann
LOL LOL> so glad you already checked the place out and commented on prices, I wa stempted to go look last week when I picked 2 friends up at airport, I am going to airport again next week, so I am NOT going to even go in and look, ๐
Bob
Hi Cheryll Ann – Happy to be of service and help you save a little money! ๐