CHINA. Hainan Tourism Investment Development Co Ltd, a provincial state-owned enterprise approved by Hainan Provincial Party Committee and Provincial Government, is set to enter the offshore duty free business on the holiday island once a licence application is formally granted.
Respected finance and business title Chinese 21st Century Business Herald reported yesterday that the application is likely to be approved soon following a recent meeting of Hainan Provincial Government officials. The story was carried in turn by Jason Cao’s DutyFreeExpert, a leading source on China’s travel retail sector. The Moodie Davitt Report has confirmed the reliability of the information with relevant sources in Hainan.
The company was inaugurated on 13 April with an initial registered capital of RMB3 billion (US$428 million). It operates primarily across eight business sectors: tourism transportation, hotel management, tourism shopping, scenic areas & resorts, sports & recreation, cruise and yacht tourism, innovation & incubation, and tourism finance.
Hainan Tourism Investment Development Co Ltd is the controlling shareholder of Hainan Haiqi Transportation Group Co (a Shanghai Stock Exchange listed company); Hainan Tourism Investment Holdings Group; Hainan Huaxia Investment Management Co; and other subsidiaries. It also operates several high-end hotels and is a shareholder in China Duty Free Group parent China Tourism Group Duty Free Corporation and Hainan Duty-Free Co Ltd.
Its offshore duty free interests will complement those of CDFG (and perhaps other newcomers) and are likely to be based in Haikou and Sanya.
As reported, Hainan province’s recently liberalised offshore duty free shopping policy, part of its hugely ambitious Free Trade Port development, is attracting growing interest from powerful Chinese online and offline retailers hoping to enter the market.
The exhanced offshore duty free shopping policy encourages additional competition, both local and international, though China Duty Free Group is considered certain by analysts to retain its dominant position.
