Zhuhai Duty Free plans Sanya store to serve Hainan Island residents in second half

CHINA. Long-established state-owned travel retailer Zhuhai Duty Free has revealed plans to open a 3,500sq m store in Sanya to serve Hainan Island residents in the second half of this year.

Zhuhai Duty Free Group General Manager Chen Hui today spoke about the retailer’s ambition to expand into Hainan during the TFWA Asia Pacific Hainan Special Edition virtual conference.

Zhuhai Duty Free Group General Manager Chen Hui: Ambitions to grow in the Hainan market

As reported, provincial authorities aim to extend the current offshore duty free policy to include an allowance for Hainan’s 10 million residents. Unlike the existing offshore duty free shopping policy, residents will not have to leave the island to shop under the proposed legislation. Retail licences will be awarded by the Hainan provincial government. Stores operating under the policy will be able to sell traditional tax- and duty free items as well as certain daily commodities.

An impression of the new store, shown to delegates at the TFWA Hainan Special Edition event today
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Chen told the conference: “As an active member of the China duty free industry, we are joining the development of the Hainan market. To participate, in 2020 Zhuhai Duty Free began to lay out the market and established Hainan Duty Free Corporation Ltd.

“The first duty free shop for island residents, in partnership with Sanya Tourism Investment Corporation, is scheduled to open in the second half of the year.

“The policy has not yet been officially announced but we are doing planning in advance to build the first duty free downtown store for local residents. It will be 3,500sq m in accordance with the new policy. We will aim to meet the needs of residents, and bring more convenience to them.

“We believe that with the policy of liberalisation, only through cooperation among all duty free retailers can we maintain the vitality of Hainan’s duty free market.

“Zhuhai Duty Free will seize on development of Hainan’s tourism and policies in the future.”

Chen said that this was part of a wider plan to expand in Hainan. “In September our Sanya United Construction & Development Corporation won the bid to build a major new 162,000sq m economic and business centre in Sanya. It is positioned as a high-end commercial centre in the city, designed by UK designers Benoy and is expected to be in operation by the end of next year.”

Zhuhai Duty Free was one of the first state-owned duty free enterprises to be approved, beginning its operations in 1980. Its network serves nearly 200 million tourists per year, said Chen.

*More coverage of a session on the Hainan market at the TFWA Asia Pacific Hainan Special Edition will follow shortly.

The Zhuhai Duty Free network today, as presented by General Manager Chen Hui

Note: Every fortnight The Moodie Davitt Report publishes Hainan Curated, in association with Foreo, a selection of all recent stories from the offshore duty free sector in Hainan province.

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