Hainan FTP: duty-free sector achieves ¥46.8 bln sales in 1 year

Benefiting from both a number of new tax policies and more duty-free franchise licenses, China’s southernmost province of Hainan is enjoying booming growth in the duty-free sector. Since the new island departure duty-free shopping policy was released on July 1st, 2020, duty-free shops across Hainan have seen duty-free sales worth 46.8 billion CNY (about 7.24 USD) as of June 30th this year, a year-on-year increase of 226%.

Aerial photo taken on July 5th, 2020 shows the CDF Mall in the Sanya International Duty Free Shopping Complex in Hainan. (Photo by Zhang Liyun / Xinhua)

Photo taken on July 5th, 2020 shows shoppers in the beauty & cosmetics section in the CDF Mall in the Sanya International Duty Free Shopping Complex in Hainan. (Photo by Zhang Liyun / Xinhua) 

Following the release of the master plan for the Hainan Free Trade Port on June 1st, 2020, a new island departure duty-free shopping policy was issued on July 1, 2020, easing limits on duty-free shopping in Hainan by raising the duty-free spending limit from 30,000 CNY to 100,000 CNY (about 15,500 USD) per person per year and also expanding the number of categories of duty-free goods from 38 to 45. 

Additionally, starting Feb, 2021, in order to make the duty-free shopping process more convenient and develop the island into a better International Tourism Consumer Center, Hainan is offering new duty-free delivery methods for departing passengers, allowing them to collect their duty-free purchases by mail delivery, and allowing departing Hainan residents to collect their duty-free purchases after returning to the island. See more at http://www.hicn.cn/system/2021/02/03/032504303.shtml.

A total of five new Hainan duty-free shops officially opened in 2020, raising the total number of duty-free shops in the province to nine.