CHINA. The enhanced offshore duty free shopping policy introduced to Hainan island on 1 July has had an immediate and startling impact on sales with revenues rising +234.19% to RMB2.22 billion (US$318 million) for the period 1-27 July, according to Hainan Daily.
That result represented a +45.51% month-on-month increase, the internet media reported, citing the General Administration of Customs official figures.
During the period, about 281,000 tourists visited the island, Hainan Daily said, a rise of +42.71% year-on-year and – importantly from a tourism recovery perspective – ahead +12.63% month-on-month.
Key changes to the offshore duty free shopping policy included:
- The offshore shopping quota was increased from RMB30,000 (US$4,215) to RMB100,000 (US$14,050).
- The number of categories was increased from 38 to 45.
- The limit of RMB8,000 (US$1,129) for a single purchase was removed.
- With quota management adopted as the main form of administration, the types of goods that were limited by the quantity of a single purchase was substantially reduced.
