Hainan's Offshore Duty-free Stores Generate Sales of Nearly 2 Billion Yuan During Spring Festival

As new policies on offshore duty-free shopping took effect in June 2020, consumption continued to grow during the 2022 Spring Festival.

There are in total 10 offshore duty-free stores in Hainan at present. According to the Department of Commerce of Hainan Province, the total sales generated by them from Jan 30 to Feb 5 were 1.983 billion yuan, a 144% growth year-on-year. That included 1.82 billion yuan of duty-free sales, up by 153% year-on-year. The number of duty-free shoppers totaled nearly 277.8 thousand, a 128% increase year-on-year.

According to China Duty-Free Group (CDF), the industry leader, duty-free industry in Hainan has been soaring in 2021.

Its 2021 performance report stated that Hainan’s duty-free industry enjoyed a revenue of 67.67 billion yuan, a 28.65% increase year-on-year during the reporting period. The operating profit, gross profit and basic earnings per share have all increased by more than 50%. There is much more room for growth in both the market penetration rate and the per customer transaction of offshore duty-free shopping as the construction of the Hainan Free Trade Port is underway.

According to the data of the Department of Commerce of Hainan Province, sales of the 10 offshore duty-free stores in Hainan reached 60.173 billion yuan in 2021, up by 84% year-on-year. The Governor of Hainan Province announced that they’d strive to boost the sales to 100 billion yuan in 2022.

The tourism sector is booming as well. Data issued by the Department of Tourism, Culture, Radio, Television and Sports of Hainan Province showed that the total number of tourists reached 5.4113 million and the total income 7.53 billion yuan.