Development and policies for Hainan duty free industry

[TropicalHainan]

What are the policies and development direction for the Hainan duty free industry

Hainan has become a shopping paradise since the new offshore duty-free policy took effective in July 2020. In 2020, the total sales revenue of offshore duty-free shops in Hainan Province amounted to 32.7 billion Yuan.

Operators in offshore duty-free shopping:

Hainan Province has issued many offshore duty-free operating licenses. License holders include China Duty Free Group, Hainan Tourism Investment holding Group, Hainan Development Holdings, CNSC and Times DF.

The world’s largest standalone duty-free shop:

Sanya Haitang Bay International Shopping Centre is the world’s largest standalone duty-free shop, with a total building area of some 120,000 square meters and an area of 72,000 square meters for commercial purposes. Over 300 world-renowned brands operate in the Centre.

China’s only offshore duty-free policy:

Hainan is the fourth offshore duty-free zone globally.

You can make duty-free shopping purchases without going abroad. It has an absolute advantage in product prices and categories in the national retail sector, and is an important global market for duty-free purchases.

Policies

The policies benefit a huge population

Increase duty-free shopping quota

Covers high Average Transaction Value (ATV)

Hainan’s offshore duty-free policy

Applicable to domestic and foreign tourists leaving Hainan or Hainan residents 16 years old and above leaving the island.

100,000 Yuan per person per year, unlimited times

45 categories (including electronic products, alcohol, etc.).

Policy advantages

Compared to other forms of tax exemption, such as tax exemption for outbound personnel in the city and tax exemption for returnees, Hainan duty-free service applies to domestic and foreign tourists leaving Hainan and Hainan residents leaving the island, without criteria for leaving.

The duty-free shopping quota in Hainan is 20 times the duty-free shopping quota for outbound personnel, unlimited times.

Compared to other forms of tax exemption, such as tax exemption for outbound personnel in the city and tax exemption for returnees, which have restrictions in some categories, Hainan duty-free shopping covers alcohol and electronic products and a lot more.

Key areas

Duty-free Shops /high-end department stores/brand flagship stores/experience stores

Areas where brands operate

Haikou Mission Hills Centreville Duty-Free City

Haikou Mova Plaza Duty Free Shop Haitang Bay Duty Free Shopping Complex

Sanya Hainan Duty-Free

Boao Duty Free Shop Haikou Meilan Airport Duty Free Shop

Sanya International Duty Free Plaza

Sanya Phoenix Airport Duty Free Shop.