Business in Hainan, new trade policy and opportunities

 The development of the Hainan Freeport draws a much anticipated plan for locals, tourists and businessmen as a whole. As the COVID-19 epidemic is now globally under control nationally and travel restrictions have been lifted in large parts of the country, Hainan Province (southern China) has recently become one of the most popular tourist destinations.

Thus, according to Deng Yongbo, secretary general of the Sanya Tourism Federation, more than 90% of the rooms were fully occupied in Yanglong Bay and Haitang Bay during most of July and August in two five-star hotel groups. of international brands.

Hainan's unique tropical tourism resources were transformed as a factor that fueled the travel boom when the epidemic prevented people from traveling abroad. But the real boon has been the newly improved incentives of the duty-free purchasing policy granted offshore by the central government to promote the development of the Hainan Freeport.

Since July 1, Hainan has increased its annual duty-free shopping quota from 30,000 yuan ($ 4,392) to 100,000 yuan per person. The number of duty-free product categories has also increased from 38 to 45, with products such as cellphones, laptops and wine products being added to the list.

“Business in August, the summer vacation period, was even more dynamic than the traditional Spring Festival period. The highest daily passenger flow reached 40,000, ”said Zhao Jing, deputy director of marketing department of Sanya Duty Free Shopping Complex, the world's largest duty free store, with a total area of ​​120,000 meters. square and showcasing more than 350 international luxury brands.

Customs data from Haikou, the provincial capital, showed Hainan's duty-free sales topped 5.58 billion yuan from July 1 to August 31, up 221.9 percent year-on-year. .

Haina provincial trade authority officials say the new policy is expected to play a role in winning back consumers who previously bought high-end products overseas.

Hainan currently has four offshore duty free shops. Two are in Haikou, one in Qionghai and the other in the very popular resort town of Sanya, where the island province plans to build more duty-free shops.

According to Xie Xiangxiang, associate professor of tourism at Hainan University, the new policy unlocks the consumption power of high-end Chinese consumers. “The construction of new duty free shops in the French port of Hainan will encourage competition, which in turn will create better shopping experiences for customers, bringing richer varieties of branded products, lower prices through promotions and better services ”.