Hainan’s offshore duty free sector, fresh from a record-breaking 2021, got off to a positive start in 2022 with sales hitting CNY600 million (US$94.1 million) during the three-day New Year’s holiday period, a 9.7 percent rise year-on-year.
The results, first reported by Xinhua News Agency, China Global Television Network (CGTN) and Hainan Hinews Media Co, and since confirmed by The Moodie Davitt Report, are encouraging given the current COVID-19 outbreak in Mainland China, which has dampened travel demand.
For the period 1-3 January, around 739,000 items were purchased at the island’s various duty free stores, up 9.7 percent year-on-year.
Haikou Customs revealed that on New Year’s Day alone, the island’s duty free stores attracted 18,200 visits, up 9.9 percent. Average transaction value reached CNY8,917 (US$1,398), an encouraging 17.3 percent gain year-on-year.
Hainan has five duty free retailers – China Duty Free Group, CNSC, Hainan Tourism Investment Duty Free Co (which runs Hainan Tourism Duty Free Shopping Complex), Hainan Development Holdings (Global Premium Duty Free Plaza) and Shenzhen Duty Free (Times DF in Mission Hills Haikou) – operating across ten locations, collectively offering over 720 brands across some 220,000 square meter of shopping space.
As reported, Hainan island’s offshore duty free stores generated sales of CNY60.17 billion (US$9.47 billion) in 2021, an 84 percent increase year-on-year. That included duty free sales of CNY50.49 billion (US$7.94 billion), up 83 percent year-on-year, with the balance being accounted for by tax paid sales.
The number of shoppers in 2021 rose 73 percent to 9,676,600 and the number of duty free items purchased increased by 71 percent to 53,492,500.
(Source: The Moodie Davitt Report)