Original title: Tourists have to be economical and add vitality (in-depth observation)
Photo by our reporter Wang Xinyue
Photo by our reporter Wang Xinyue
Photo by our reporter Wang Xinyue
Sanya Haitang Bay International Duty Free City.
Photo courtesy of Sanya Haitang Bay International Duty Free City
In April 2011, my country began to implement the outlying island tax exemption policy in Hainan on a trial basis. For more than 10 years, the tax-free shopping quota has been continuously increased, and the variety of products has been continuously expanded. This has not only brought benefits to tourists, but also promoted the transformation of Hainan’s economy, stimulated consumption potential, and developed emerging industries, becoming an important “engine” driving Hainan’s economic development. Since 2011, Hainan’s duty-free sales have increased by an average of 44% annually, the number of shoppers has increased by about 30%, and the number of purchases has increased by about 40%.
By July 1 this year, Hainan’s outlying islands’ new duty-free shopping policy will be implemented for one full year. Since the implementation of the new policy, the quota for duty-free shopping on Hainan’s outlying islands has increased. Consumers no longer have to count the number of purchases with their fingers; the brands and categories of duty-free goods have increased, and the shopping experience has improved. There are more and more tourists visiting and shopping in Hainan, and the market is becoming more and more prosperous.
In April 2011, my country began to implement the outlying island duty-free policy in Hainan on a trial basis, allowing outlying islands (excluding departures) by plane, train, and ship to carry out a certain number and variety of preferential import tax-free shopping. For more than 10 years, Hainan has sold more than 100 billion yuan of duty-free goods, more than 25 million people shopped, 120 million items were purchased, and tourists have saved about 20 billion yuan in total cost of buying duty-free goods in Hainan. The outlying island tax exemption policy not only brings benefits to tourists, but also promotes the transformation of Hainan’s economy, stimulates consumption potential, develops emerging industries, and becomes an important “engine” driving Hainan’s economic development.
Accelerated adjustment of economic structure
The continuous expansion of duty-free shopping has promoted the development of related industries such as accommodation, catering, culture and entertainment, and effectively improved the economic structure of Hainan
In Haitang Bay International Duty Free City, Sanya, Hainan, there are many tourists, and there are long lines in front of some well-known brand counters. Mr. Yang, who chooses watches in front of a watch counter, told reporters: “Buying a luxury watch usually costs tens of thousands of yuan. In the past, the tax exemption was only 30,000 yuan, and the tax rate of the excess part must be borne by yourself. In July last year, the tax exemption was increased to 10 yuan. After 10,000 yuan, most of the goods can be bought within the quota, and consumers will have more choices and shopping more fun.”
Since its implementation in April 2011, Hainan’s outlying island tax exemption policy has been adjusted 8 times, and the “golden content” of the policy has continued to increase——
The tax exemption has been continuously increased. In 2011, the tax-free shopping quota for outlying island tourists was only 5,000 yuan per person per year, and then gradually increased to 8,000 yuan, 16,000 yuan, and 30,000 yuan. From July 1 last year, it was increased to 100,000 yuan.
The variety of commodities has gradually expanded. Expanded from the original 18 types to the current 45 types, especially last year increased consumer-popular electronic products, etc.; shopping objects continue to increase, adjusted from domestic and foreign tourists who were initially 18 years old and flying out of the island but did not leave the country For domestic and foreign tourists who have reached the age of 16 and leave the island by plane, train, or ship but do not leave the country.
Shopping restrictions are getting less and less. The number of purchases has been adjusted from 2 times per person per year to an unlimited number of times. From the beginning, each product has a limit on the number of purchases, and the adjustment is mainly based on quota management, which greatly reduces the types of products that have a single purchase limit.
With the strengthening of the duty-free policy on outlying islands, the development of the Hainan duty-free shopping market has also entered the “fast lane”.
There are more duty-free shops. In April and December 2011, CDFG Sanya’s outlying island duty-free shops and Haikou Duty Free Shop Co., Ltd.’s Meilan Airport outlying island duty-free shops opened one after another. At that time, there were only two outlying island duty-free business entities in the province. By January 2021, the number of outlying island duty-free business entities will increase to 6, and a pattern of moderate competition has taken shape. After years of development, there are 10 outlying island duty-free shops in the province, and 9 of them have opened.
Duty-free shops are “big”. At present, the operating area of duty-free shops on outlying islands in the province is about 210,000 square meters, which has increased by 30 times in 10 years. In particular, CDFG Sanya Haitang Bay International Duty Free City has become the world’s largest single duty-free shop with an operating area of 70,000 square meters. It has improved the tourist carrying capacity and optimized the store layout to provide consumers with better shopping options.
In 2011, the initial outlying island duty-free shops in Sanya only operated less than 100 international brands, mainly in the field of perfume and cosmetics, and more than 85% of sales also came from these products. Today, Hainan has introduced 650 international brands, with the addition of jewelry, watches, bags, clothing, and electronic products. Consumers can buy more and more international brands in Hainan without going abroad. Among them, more than 20 single-store sales of Estee Lauder, Cartier, Bulgari, Tiffany and other brands rank first in the global duty-free retail.
“Tax-free shopping has become an important’engine’ for Hainan’s development.” said Xia Feng, executive dean of the Advanced Institute of Humanities and Social Sciences, Hainan University. Hainan had a real estate bubble in the 1990s. After the bubble burst, the economy once fell into a trough. A number of good policies such as getting rid of “real estate dependence” and tax-free shopping on outlying islands can be described as “leading successes.”
Beginning in 2015, the Hainan Provincial Party Committee and the Provincial Government seized the favorable opportunity for Hainan’s development and adjusted the economic structure with the determination to “break the arm of the strong man”. As the scale of duty-free shopping continues to expand, driving the development of accommodation, catering, culture and entertainment and other related industries, the direction of Hainan’s economic restructuring has become increasingly clear.
Statistics show that in the first quarter of this year, the added value of the service industry in Hainan Province increased by 25.5% year-on-year, contributing 78.9% to economic growth. Among them, the value added of the wholesale and retail industry increased by 64.2% year-on-year, and the value-added of the accommodation and catering industry increased by 42.5% year-on-year. The outlying island tax exemption policy has also effectively increased social employment. Now, 9 duty-free shops have opened a total of 9,541 employees. As of the end of March 2021, Hainan Province has about 10,000 market entities related to “tax exemption”, accounting for more than 40% of the country.
“Tax-free shopping has greatly stimulated Hainan’s economic vitality.” Lei Jun, an associate professor at the School of Economics and Management of Hainan University, said that with the continuous improvement of the tax-free policy on outlying islands, Hainan’s tourism shopping consumption has accelerated its quality and efficiency, and the economic structure has been effectively adjusted. Tax-free shopping has become A “golden business card” of Hainan Tourism.
The effect of consumption return is obvious
In the past 10 years, Hainan’s total retail sales of consumer goods have grown at an average annual rate of 11.5%, while duty-free sales have grown at an average annual rate of 44.6% over the same period, which is significantly higher than the growth rate of total retail sales of consumer goods.
“The biggest advantage of duty-free shops is their affordability. Since the opening of the first duty-free shops on outlying islands, various business entities have adopted the promotion of duty-free shopping on outlying islands in major tourist source cities, strengthened interaction with hotels, scenic spots, and travel agencies, and established duty-free shopping experiences. Stores, hold duty-free shopping festivals, and open convenient online’new retail’ channels to expand sales channels and stimulate consumption potential.” Feng Ling, deputy general manager of Hainan Duty Free Products Co., Ltd., told reporters.
Click on the WeChat public account of “Sanya International Duty Free City” and the reporter found that some well-known cosmetics can still be “exempt” plus “exempt”. In addition to giving the duty-free price, you can also add a 6-50% off on this basis. The price is very high. Affordable.
In 2020, in the Hainan duty-free shopping market, the sales of high-end products such as watches, jewelry, luggage and clothing, shoes, hats and leather goods, which are relatively high in overseas consumption by Chinese tourists, have soared, with annual sales increasing 2.5 times year-on-year. The sales structure of duty-free goods was adjusted from perfume cosmetics accounted for 85%, adjusted to perfume cosmetics accounted for about 50%, and jewelry, watches, luggage and bags accounted for 10%. The proportion of sales of duty-free goods above 8,000 yuan has increased from about 18% in the past to more than 25% now. The per capita shopping amount of duty-free shops was initially less than 2,000 yuan, and now it is close to 10,000 yuan.
In February of this year, the Free Trade Office of the Hainan Provincial Party Committee, in conjunction with relevant departments in Hainan, actively promoted the implementation of two major facilitation measures for the delivery of duty-free shopping by outlying tourists and the delivery of goods by residents of the island.
“Duty-free shops use tourism to promote consumption and consumption to promote tourism. When you come to Sanya, in addition to seeing Tianya Haijiao, Wuzhizhou Island and other attractions, Sanya Haitang Bay International Duty Free City has also become one of the must-see destinations.” Sanya City, Hainan Said Tang Sixian, a researcher from the Tourism and Culture Bureau. Nowadays, tourists buying duty-free goods account for more than one-fifth of Hainan’s overnight tourists. Duty-free shopping has become a new fashion for domestic and foreign tourists to visit Qiong, and it has also enhanced the international competitiveness of Hainan’s tourism industry.
On January 31 this year, the first phase of Haikong Global Boutique (Haikou) Duty Free City opened successfully. “We have created a warm shopping atmosphere and arranged two customer service teams, a customer service hotline and an on-site customer service team, to provide customers with 24 hours a day service accompaniment; we plan to implement facial recognition to pay for shopping, smart makeup color testing machines, and virtual reality technology to allow customers to shop. Have fun shopping and buy it conveniently!” Yang Jun, deputy general manager of Hainan Development Holdings Co., Ltd. introduced to reporters.
Statistics show that since 2011, Hainan’s duty-free sales have increased by an average of 44% annually, the number of shoppers has increased by about 30%, and the number of purchases has increased by about 40%. In the past 10 years, the total retail sales of consumer goods in Hainan Province has grown at an average annual rate of 11.5%, and the tax-free sales during the same period have grown at an average annual rate of 44.6%, which is significantly higher than the growth rate of the total retail sales of consumer goods.
“Last year, policy adjustments were vigorous. Affected by the new crown pneumonia epidemic, the number of duty-free shopping on outlying islands increased by 20% year-on-year, but the duty-free sales on outlying islands were 27.57 billion yuan, an increase of 104.2% year-on-year, and the number of shopping items increased by 88% year-on-year. The new policy was implemented in July last year. Since then, the average daily sales of Hainan’s duty-free commodities has exceeded 140 million yuan, a year-on-year increase of 2.7 times.” said the relevant person in charge of the Hainan Provincial Department of Commerce.
During the “May 1st” holiday this year, the duty-free shopping market on Hainan’s outlying islands continued to be hot. According to Haikou Customs statistics, from May 1 to 5, Haikou Customs supervised 993 million yuan of duty-free shopping on outlying islands, with 121,000 shoppers and 1.345 million items, up 248%, 141% and 229% year-on-year respectively.
Promoting the accelerated return of overseas consumption, the tax-free shopping policy is effective. The relevant person in charge of the Hainan Provincial Department of Commerce said: “In 2011, the import of duty-free goods was less than 10% of the province’s import value, and since 2020, the import of duty-free goods has exceeded 1/3 of the province’s import value, and it has leapt to the forefront of various imported goods , Has become the main factor driving the province’s import growth.”
According to Haikou Customs statistics, Hainan’s foreign trade imports and exports in 2020 amounted to 93.3 billion yuan, a year-on-year increase of 3%, and the growth rate was 1.1 percentage points faster than that of the whole country. Among them, the import of consumer goods, mainly daily consumer goods, was 33.71 billion yuan, an increase of 109%.
Experts suggest that more companies can be gradually allowed to enter the Hainan duty-free shopping market, through full competition, to improve the quality of goods and services; further expand the tax-free shopping area, expand the types of tax-free goods, so that the tax-free shopping policy can benefit more consumers and promote economic development.
Emerging industries have more stamina
Duty-free shopping provides a huge consumer market for new businesses such as high-end medical care and new agricultural products, enabling mid-to-high-end consumption and new consumption to form a complementary trend
“I happen to be shopping at the duty-free shop. I want to ask what the price of ice cream is. Can I see it on the spot?” “I heard that Lecheng Advanced Area can treat intractable diseases, can I come to consult?”…
With the continuous adjustment of the duty-free policy on outlying islands, the high-end tropical fruit brand of Qionghai City’s “Window of Tropical Fruits of the World” has received more calls from buyers, and the major hospitals and rehabilitation institutions in the Boao Lecheng International Medical Tourism Pioneer Zone have asked The number of inquiries continues to increase… In February this year, the cross-border duty-free pharmacy co-built by Hainan Haikong Duty Free Group, Yiling Group and Zhongxin Tourism Group started trial operation. After opening for 5 days, the transaction volume exceeded 2 million yuan.
“The increase in the traffic of tax-free shopping has provided a huge consumer market for high-end medical care, new agricultural products and other new formats, making mid-to-high-end consumption and new consumption a complementary trend, allowing Hainan’s emerging industries to develop more stamina.” China South China Sea Research Institute Said Yu Tao, director of the Hainan Free Trade Port Research Center.
The National Development and Reform Commission and the Ministry of Commerce recently issued the “Opinions on Supporting the Construction of Hainan Free Trade Port to Relax Certain Special Measures for Market Access”, and introduced 22 special measures to relax market standards in the medical, financial, cultural, educational and other fields. Into. Emerging industries have become the main beneficiaries of the liberalization of market access for the Hainan Free Trade Port.
Hainan issued the “Three-year Action Plan for the New Investment Policy of Hainan Free Trade Port (2021-2023)”. Through the implementation of the new three-year investment policy, the three leading industries of tourism, modern service industry and high-tech industry will be developed. Tropical characteristic high-efficiency agriculture and manufacturing are included in the scope of encouraging development, and a “3+1+1” modern industrial system will be built.
“We detailed the implementation of the overall plan for the construction of the Hainan Free Trade Port, combined with the advantages of the first Consumer Expo, the Boao Lecheng Medical Tourism Pioneer Zone, and Lingshui International Education Island, and gave full play to the superimposition, linkage and linkage effects of the Free Trade Port policy. Multiplier effect, do a good job in shopping, medical treatment, and promote the accelerated development of the domestic health industry.” said the relevant person in charge of the Boao Lecheng Medical Tourism Pioneer Zone.
To promote the smooth implementation of the duty-free shopping policy on outlying islands, it is necessary to ensure the free and efficient flow of goods, funds, and personnel between the free trade port and overseas, but also to maintain the bottom line of safety and combat illegal and criminal acts such as smuggling and tax evasion.
Zhu Donghai, Deputy Secretary-General of the Political and Legal Committee of the Hainan Provincial Party Committee, said that the Free Trade Port Working Committee of the Hainan Provincial Party Committee has set up 13 special working groups for risk prevention and control, clarifying timetables and road maps, strengthening overall planning, research and judgment, and the smuggling risk prevention and control working group is one of. Since November 2019, the Haikou Customs Anti-smuggling Department has carried out 12 rounds of special operations against the smuggling of Hainan’s outlying islands with duty-free “smuggling agents”, and the total value of smuggled goods seized is about 250 million yuan.
“We are studying and judging risk points in the dynamics, implementing detailed prevention and control plans, establishing a sound prevention and control mechanism, and relentlessly preventing systemic smuggling risks, and promoting the prevention and control of major risks with system integration and innovation.” Zhao Junlun, Deputy Commissioner of Haikou Customs The reporter told the reporter that through appointment clearance and special personnel on duty, the customs realizes the duty-free supervision business of outlying islands on-demand, fully guarantees the timely sale of popular duty-free goods, serves the smooth operation of duty-free shops in outlying islands, and ensures that the dividends of the outlying island tax-free policy are fully released.
Layout design: Cai Huawei