NEWSFLASH

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DUTY-FREE SHOPS CUTTING OPERATIONS BY HALF

Subic Freeport, Jan. 12, 1998 - Duty-free Stores inside the Subic Bay Freeport Zone are cutting operations by 50% as a result of reduced patronage due to the peso devaluation.

Alma Banks, operations manager of Subic Commissary, one of the smaller duty-free shops, said her outfit could not longer cope with the adverse effects of the peso value's drop vis-a-vis the dollar. Another big factor was the scrapping of the $200 duty-free privilege for outsiders.

According to Ed Jaminal, Subic Freeport Chamber of Commerce director, business has been bad even for the PX Club, one of the largest duty-free outfits inside Subic. PX Club is closing its main building near the Kalaklan gate and would concentrate operations at its branch in the Cubi area.

Freeport Exchange, while not closing down completely, is downsizing its operations and reducing its personnel.

Susan Mora, Freeport Exchange manager, said no duty free shop in the Subic Freeport Zone is making any profit because of the peso plunge, which increased costs of commodities.

"You cannot sell merchandise at P45 to $1," she said.

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