A travel retail wonderland takes shape – China Tourism Group’s Haikou International Duty Free City on schedule to open in mid-2022

CHINA. Development of the Haikou International Duty Free City – anchored by what will be the world’s biggest duty free retail complex – is on target to open in mid-2022, following the recent completion of the main structural framework, China Tourism Group (parent company of China Duty Free Group) announced this week.

The extraordinary project, located at Xinhai Port, Haikou, occupies a plot of more than 675 acres, with actual construction spread across 485 acres. The site will feature some 930,000sq m of tax and duty free shopping space run by China Duty Free Group, spectacular leisure and entertainment facilities, offices and a high-end hotel.

[Click on the icon to view this video, courtesy of China Tourism Group, that shows the latest progress on the extraordinary Haikou International Duty Free City]

Taking shape: The vast site incorporates what will be the world’s largest duty and tax free shopping complex [All pictures courtesy of China Tourism Group]

China Tourism Group announces the latest construction landmark. “Let’s see what your next check-in shopping location looks like,” it says before previewing the impressive complex.

Developer China Tourism Group said that through the organic combination of a vast, high-quality shopping complex [to be run by China Duty Free Group -Ed] and other attractions, Haikou International Duty Free City will become “a one-stop comprehensive tourist destination and entertainment hub that should not be missed…  a new benchmark for Chinese commercial projects and a beacon for world tourism retail”. Tourists will enjoy not only shopping but a mixed-use wonderland incorporating a snow and rainforest environment; aviation theatre; plus art and world-class gourmet offerings.

The next construction phase will see the building’s curtain walls and roof added, and internal work commence, the group said.

These renderings underline the epic scale and grandeur that underpin the Haikou International Duty Free City development

In May 2020, The Moodie Davitt Report dedicated a special edition of our eZine to China Duty Free Group and the Hainan offshore duty free market, which we described as the ‘lighthouse’ of a COVID-ravaged global travel retail sector. Click on the image to download. Look out for our special 2021 edition on the Hainan market, to be published in coming days*. 

Due to the continuous release of policy enhancements and the resultant growth in consumption potential, Hainan’s offshore duty free business has ushered in unprecedented development opportunities, China Tourism Group said.

Haikou International Duty Free City is a project of profound national and regional importance for the powerful China Tourism Group

“As a leading participant in the offshore duty free sector, China Tourism Group continues to expand the Hainan market by building the Haikou International Duty Free City project, further helping Hainan to build a Free Trade Port and develop as an international tourism consumption centre,” the company said.

The project development and construction unit CDF (Haikou) Investment Development Co aims to deliver a world-class multi-use facility. Consequently it contracted renowned French architectural design company Valode & Pistre to head the main design. The firm specialises in urban design and architecture and has considerable experience in the duty free and tax free sector.

The giant themed atrium which will anchor Haikou International Duty Free City has been designed by acclaimed New Zealand company Weta Workshop, a design studio and manufacturing facility servicing the world’s entertainment and creative sectors.

Weta Workshop has won five Academy Awards and four BAFTAs.The firm and its co-founder Sir Richard Taylor are best known for their work on the film trilogy The Lord of the Rings (2001–03), directed and adapted from J.R.R. Tolkien’s novels by New Zealand director Sir Peter Jackson.

“With the participation of such internationally renowned designers, the renderings of Haikou International Duty Free City are awe-inspiring,” China Duty Free Group said.

The architectural design incorporates elements of Hainan’s nature and marine life to present an “ecological garden green city”.

Visitors will be able interact harmoniously with people, nature, and buildings, China Tourism Group said.

Overcoming huge challenges

As reported, China Tourism Group hosted a ground-breaking ceremony on 18 March 2019. All was well-set for project completion on schedule. However, in 2020, just as the project entered a critical construction stage, the COVID-19 pandemic struck China, preventing a large number of workers from outside the island returning to the site to work, posing huge manpower challenges.

“Waiting for the crisis to pass? Or take the initiative?” asked China Tourism Group. The company chose the latter path, working closely with local authorities to ensure that the key provincial project is completed on time. With the active support of the Xiuying District Government [Xiuying is one of Haikou’s four urban districts -Ed], nearly 80 workers were recruited from neighbouring villages and towns. The move had dual benefits, keeping the project on track while boosting employment for local migrant workers whose prospects had been hit hard by the pandemic.

In October 2020, the project again encountered unprecedented difficulties as the area was hit by six separate typhoons. In order to get the subsequently delayed construction back on track, a 24-hour workforce of some 800 construction workers was deployed to maximise the efficiency of eight tower cranes and 20 truck cranes and go all out to ensure the main body frame steel structure, weighing almost 30,000 tonnes was put in place on time. The end result was triumphantly unveiled last week.

Note: As reported, China Duty Free Group is participating with a large team at the inaugural China International Consumer Products Expo to be held in Hainan province on 7-10 May. The event is being organised by Hainan International Economic Development Bureau (Hainan IEDB).

For information, please contact Hainan IEDB Global Media Officer & Supervisor Ruslan Tulenov.

Email: lusilan@investhainan.cn
WeChat: Ruslan24
Global Investment Service Hotline: +86 4008413413

Website: www.investhainan.cn

*Hainan Island: Travel retail’s global hotspot

The Moodie Davitt Report will publish a Hainan Island Special Report with the China edition of The Magazine this month. Written by Martin Moodie and Dermot Davitt, it explores how the offshore duty free business in China has become critical to the world’s leading brands across many categories.

海南:旅游零售业的全球焦点

穆迪戴维特报告(Moodie Davitt Report)将于2021年2月随The Magazine的中文版发表《海南特别报道》。该篇由马丁·穆迪(Martin Moodie)和德莫特·戴维特(Dermot Davitt)撰写,将探讨中国的离岸免税业务是如何变得对跨类别的各大全球领先品牌至关重要。

报告将覆盖以下内容:

  • 评论与分析自2020年7月1日起,海南新离岸免税政策所引起的重大影响
  • 从美妆个护到时尚、钟表,从葡萄酒、烈酒到消费类电子产品的跨类别离岸免税额的潜力
  • 中免集团,中服免税店,DFS集团,Dufry, Hainan Development Holdings, 海南旅游投资发展公司,海南省国际经济发展局(Hanain IEDB),拉加代尔旅游零售等集团的重要访谈和简介,尤其着眼于颇具潜力的海南免税店贸易港项目
  • 除海南外,我们还将考察中国国内市场的反弹情况,评估中国机场的前景,并希望终有一天能够恢复国际旅游通行,拥有来自内地,澳门和香港市场的领先旅游零售商的输入
  • 电商驱动力:评估旅游零售业的长期市场领导者Dufry与数字巨头阿里巴巴;以及CDFG和其他主要参与者,是否具备达成合作伙伴关系的潜力
  • 顶级旅行分析师ForwardKeys的专业意见
  • 在内容合作伙伴Globuy,iClick,Jing Daily,Jessica’s Secret和DutyFree Expert的帮助下,分析有关中国消费者和免税市场的趋势

The report will feature:

  • Comment & analysis on the seismic impact of the new offshore duty free policy in Hainan since 1 July
  • The potential of new offshore duty free allowances across categories from beauty to fashion and watches and from wines & spirits to consumer electronics
  • Major interviews with and profiles of China Duty Free Group, CNSC, DFS Group, Dufry, Hainan Development Holdings, Hainan Tourism Investment Development Co, Hainan Provincial Bureau of International Economic Development (Hanain IEDB), Lagardère Travel Retail, and others, with a special focus on the ambitious Hainan Free Trade Port project
  • Beyond Hainan, we examine the rebound in the China domestic market, assess prospects for Chinese airports and hopes for an eventual return to international travel. With input from leading travel retailers in the Mainland, Macau and Hong Kong markets
  • The ecommerce drive: Assessing the potential of the partnership between travel retail’s long-time market leader Dufry and the digital powerhouse Alibaba; plus digital strategies at CDFG and other major players
  • Expert input from top travel analyst ForwardKeys
  • With contributions from our content partners Globuy, iClick, Jing Daily, Jessica’s Secret and DutyFree Expert on trends among Chinese consumers and the duty free market

Contact Irene@MoodieDavittReport.com to partner with The Moodie Davitt Report for this special edition.

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