Consumers check out cosmetics at a duty-free shopping mall in Haikou, Hainan province, on June 6. SU BIKUN/FOR CHINA DAILY
In the first six months since island-wide special customs operations were launched, Hainan Free Trade Port has delivered robust economic results, with duty-free sales surging, trade expanding and the FTP's cross-border financial account system gaining significant traction.
Duty-free shopping, which is a key driver of Hainan's consumption-led growth, continued to increase between January and June, according to data from Haikou Customs. While the value of offshore duty-free sales reached 19.92 billion yuan ($2.9 billion), up 18.8 percent year-on-year, the number of shopping trips increased 12.6 percent to reach 2.79 million.
A working model that combines culture, tourism and events linked to duty-free shopping has helped broaden the customer base, with the 6th China International Consumer Products Expo, the ABB FIA Formula E World Championship and the 6th Asian Beach Games all attracting international visitors and boosting consumption.
Retailers have largely benefited from policy tailwinds. An offshore duty-free rule implemented in November allows Hainan residents, including expatriates living on the island, who have traveled outside Hainan, to purchase duty-free goods for on-the-spot pickup for up to one year following their trip. Previously, Hainan residents could only buy duty-free goods when they were about to leave the island, and many items had to be picked up at the airport or other ports before departure.
