I. Current Status
In 2019, Hainan’s sales of duty-free goods reached 18.19 million in quantity and 13.49 billion yuan ($2.1 billion) in value, with the number of shoppers exceeding 3.76 million, up 37.3 percent, 38.5 percent and 35 percent year-on-year respectively.
There are ten duty-free shops on Hainan island, stocking a variety of high-end duty-free goods and serving 80 million tourists worldwide every year.
II. Development Advantages
(1) China's only offshore duty-free policy
Hainan is the only province in China where people can enjoy duty-free shopping without going abroad, and it has a dominant advantage in the country's large-scale retail industry, with low prices and abundant products.
(2) Perfect support services
Hainan will host global events such as International Fashion Week (SS/AW), combined with a new platform for global buyers and retailers to purchase and order.
III. Development Direction
Hainan will become a global duty-free consumption center with a "first store, first brand, first show, first launch" model; a global fashion trend information center; and a new landmark of the fashion industry.
It aims to support the following organizations to open their first duty-free flagship stores and regional headquarters:
(1) Luxury brands
(2) Independent designer brands
(3) International master studios
(4) Art research institutes
(5) Fashion marketing agencies
(6) High-end retail department stores
IV. New Opportunities for FTP Investment
(1) Preferential tax-free policy support
By 2025, Hainan will add duty-free venues and businesses, increase its duty-free quota to 100,000 yuan per person per year, expand the types of duty-free goods available, and allow duty-free purchases of imported goods for consumption by local residents. No visa is needed for people from 59 countries. Procedures for purchasing duty-free goods are being simplified, and a postal tax is being lifted. A customs clearance model of “zero tariffs across the island” is on the way, and a highly convenient business environment will be provided to all brands.
(2) Considerable consumption flow
Hainan will simultaneously develop its high-end culture, sports and tourism industries and introduce world-class theme parks, large international exhibitions and events, as well as promoting high-quality tourism products such as cruises and yachting, culture and sports, exhibitions, leisure and night tourism. It will also continue to attract consumers with strong purchasing power to make its luxury industry prosper.
(3) Smart upgrades in CBD
Hainan will fully optimize the technical standards of e-commerce in terms of transactions, payments, logistics, and foreign exchange settlements; simplify the customs clearance process and supervision model; build a "smart business circle"; and further expand its sales channels.
V. Recommended Industrial Parks
(1) Haikou Jiangdong New Area
Haikou Jiangdong New Area is divided into an eastern ecological function area and a western production-city integration area. The eastern ecological function area includes Dongzhaigang National Nature Reserve, which is an internationally important wetland. The integration zone includes an airport economic zone, a coastal ecological headquarters, a riverside international vitality center, an international cultural exchange group, an international comprehensive service group, an international offshore innovation and entrepreneurship group, and an international higher education and scientific research group.
(2) Sanya Central Business District
(3) Haikou National Hi-tech Industrial Development Zone
VI. Successful Enterprises
(1) Sanya Sea Travel Duty Free City
(2) Haikong Global Boutique (Haikou) Duty Free City
(3) Shenmian Haikou Mission Hills Duty Free City