Hainan province has set an ambitious CNY100 billion (US$15.8 billion) sales target for its duty free stores in 2022, a 66.2 percent increase on 2021.
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The figure was released during the annual session of the Hainan Provincial People’s Congress last Friday, according to Chinese state media Xinhua.
As reported, the island province’s offshore duty free stores generated revenues of CNY60.17 billion (US$9.47 billion) in 2021, an 84 percent increase year-on-year.
That figure comprised 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 2022 target is a challenging one as China continues to battle (albeit with considerable success thanks to its ‘zero-COVID policy’) against the COVID-19 pandemic. Outbound tourism from affected regions continues to be hit by the pandemic. Encouragingly, The National Health Commission reported just 18 indigenous cases on 23rd January, down from 163 a week earlier.
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Currently, Hainan has five duty free license holder: 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).
(Source: The Moodie Davitt Report)