Hainan duty free policy boosts tourism

As a popular tourist destination in China, the island province of Hainan has had relatively low shopping revenue over the years. But that all changed eight months ago when a duty free policy for the island was introduced. CCTV reporter, Zhang Ni, has been to Hainan’s first duty free shop to see how the local economy has been boosted.

First Christmas shopping spree after its opening, the downtown duty free shop in Sanya is experiencing a busy season.

A tourist guide said, "Every time I bring tourist group here, they forwardly ask me to bring them to this store."

Under the offshore duty free policy, tourists from Chinese mainland can buy duty free goods for up to 5000 yuan a time, and collect those goods at the airport before going back home. But some tourists are not quite satisfied.

Tourists said, "There are too few brands here, we don’t have many choices." "There are many things out of stock."

And the restriction of 5000 yuan seems not enough. A tourist said, "I can only buy two purses. If I want something over 5000 yuan, it’s no difference from the store at home."

Never the less, tourists do not leave the store empty handed, with an average consumption of 2000 yuan.

Guan Wu, assistant general manager of Sanya downtown Duty Free Store, said, "The offshore duty free policy is still in its trial phase, and so are we. With the development of the situation, there will be some improvements and adjustment to the restrictions."

This year, the number of visitors to the island is hoping to increase by 4 million compared with last year. Thanks to this duty free shop, over 8 billion yuan will be added to the business volume of local tourism. And this is only the first step of Hainan Island towards its goal of becoming an international tourist destination.

Tang Sixian, deputy director of Sanya Tourism Development Commission, said, "We have already authorised companies to build a duty free resort including hotels, duty free stores and entertainment facilities."

Tourism revenue is hopping to represent over 12% of local GDP by the end of 2020, nearly doubles the actual proportion.