CHINA. Hainan’s offshore duty free sector, so vital to the island province’s tourism economy since its founding in 2011, is likely to be further expanded, according to a report in powerful state media ChinaDaily.com.
In an article titled ‘Duty-free biz seen as key to building Hainan FTP’ on the website – China’s largest English-language portal – reporter Zhu Wenqian said that the duty free sector will play a key role in continued efforts to promote Hainan Free Trade Port as an international tourism consumption centre.
The report quoted China Tourism Group (parent company of China Duty Free Group) Chairman Chen Yin commenting on how the return of Chinese outbound travel might impact Hainan’s offshore duty free business.
“With China optimising its entry measures, Chinese passengers’ travel confidence is reshaping rapidly and many overseas destinations have introduced favourable measures to attract Chinese tourists,” said Chen, who is also a member of the 14th National Committee of the Chinese People’s Political Consultative Conference.
“In this context, the building of Hainan as an international tourism consumption centre may face some challenges in the future. We suggest that Hainan continue to strengthen its attractiveness of offshore duty free shopping by expanding the scale, launching more brands, extending online sales channels and upgrading services.”
Since the offshore duty free channel was created in 2011, eight policy enhancements have been introduced, making duty free shopping a ‘golden ticket’ for Hainan, the report said.
Chen proposed more Chinese brands should be encouraged to establish a presence at offshore duty free stores to boost the market and consolidate the leading position held by China’s travel retailers.
Xing Weiwei, a Partner at consultancy Bain & Co, noted the Hainan Free Trade Port will continue to play a crucial role within China’s booming luxury goods market.
“We are optimistic that China’s luxury market will continue to grow, driven by an increasing consumer base and a further digitalised environment. Hainan will serve as a key enabler to drive consumption,” Xing said. ✈
