Known for its tropical allure, Hainan Province in south China is rapidly transforming into a global shopping haven. The island’s burgeoning duty-free market has become a magnet for both domestic and international tourists, significantly boosting its tourism sector.
The Surge in Duty-Free Shopping
In 2023, Hainan witnessed a remarkable surge in offshore duty-free shopping. According to Liu Xiaoming, the provincial governor, the number of shoppers increased by 59.9 percent, and total sales rose by 25.4 percent compared to the previous year. This impressive growth underscores the island’s appeal to travelers, many of whom are drawn primarily by the enticing shopping opportunities.
Evolution of the Duty-Free Policy
Hainan’s journey as a duty-free destination began in 2011 when the province introduced an offshore duty-free policy, allowing visitors to make tax-free purchases at designated stores. Initially, the annual spending limit was set at 30,000 yuan (approximately $4,145). Responding to growing demand, the limit was increased to 100,000 yuan (about $13,817) per person in 2020, and the range of duty-free goods was expanded to include electronics and other popular items.
Over the past 13 years, the duty-free offerings in Hainan have become more diverse and affordable. From April 2011 to October 2023, Haikou Customs reported that duty-free shopping transactions totaled 202.4 billion yuan, spanning 37.22 million shopping trips and involving the purchase of 268 million items.
Enhancing the Shopping Experience
In April 2022, Hainan introduced new methods for collecting duty-free items, enhancing flexibility and convenience for shoppers. Tourists now have the option of a “guaranteed pick-up” service, allowing them to collect high-value items over 50,000 yuan directly on-site with guaranteed availability.
For designated items under 20,000 yuan, the “buy and pick-up” option offers immediate access to purchases, complementing traditional collection methods at airports, railway stations, and ports. This means travelers can buy and use items like sunscreen and sunglasses instantly, reducing luggage load and improving the overall shopping and travel experience.
A Catalyst for Openness and Growth
Hainan’s duty-free policy is more than a boon for shoppers; it’s a strategic move to catalyze economic growth and widen openness. By transforming into a free trade port, Hainan is positioning itself as a key player in global trade and tourism, attracting investment and fostering international connections.
The island’s success story reflects China’s broader efforts to promote economic development and openness. As Hainan continues to innovate and enhance its duty-free offerings, it is set to redefine tourism and serve as a model for growth in the region.
Reference(s):
Hainan FTP: Catalyzing duty-free sales and widening openness
cgtn.com
