Known for its tropical island charm, Hainan Province in south China has emerged as a tourist magnet, attracting an increasing number of domestic and international visitors. The appeal of duty-free shopping has significantly boosted Hainan's tourism, making it a key attraction for travelers, especially those drawn primarily by the shopping opportunities.
In 2023, offshore duty-free shopping saw remarkable growth, with a 59.9 percent increase in the number of shoppers and a 25.4 percent rise in total sales compared to the previous year, according to Liu Xiaoming, the provincial governor, during a press conference held in April.
Behind the booming duty-free market
First introduced in 2011, Hainan's offshore duty-free policy allows visitors to make tax-free purchases at designated stores. Originally, the policy set an annual duty-free spending limit of 30,000 yuan (approximately $4,145), and in 2020, this cap was increased to 100,000 yuan (about $13,817) per person. Also, the range of products eligible for duty-free status was broadened to include electronics, among other items.
Over the last 13 years, duty-free offerings have grown both more affordable and varied. From the start of the offshore duty-free policy in April 2011 through to October 2023, Haikou Customs reports that duty-free shopping transactions have totaled 202.4 billion yuan across 37.22 million shopping trips, involving the purchase of 268 million items.
In April last year, Hainan introduced two new methods for collecting offshore duty-free items, providing customers with more flexibility and convenience. Tourists can opt for a \\"guaranteed pick-up\\" service, which allows them to collect items costing over 50,000 yuan directly on-site with guaranteed availability.
For designated items under 20,000 yuan, the \\"buy and pick-up\\" option complements traditional collection methods, like pick-up at railways, airports, and ports, or delivery. For example, customers can purchase and immediately use items like sunscreen and sunglasses from island duty-free shops, reducing luggage and enhancing ease of shopping and comfort.
Reference(s):
Hainan FTP: Catalyzing duty-free sales and widening openness
cgtn.com
