CHINA. Hainan’s offshore duty free sales soared during the essential Chinese language New 12 months Spring Festival vacation interval, in line with statistics supplied by the Hainan Provincial Division of Commerce and supplied to The Moodie Davitt Report by Hainan Each day.
For the seven-day interval February 11 to 17, complete sales exceeded CNY1.5 billion (US$231.9 million), of which duty free gadgets accounted for round CNY1.4 billion (US$216.5 million) – an approximate doubling of revenues from the equal vacation interval in 2019 (pre-COVID). Duty paid gadgets accounted for the stability.
Heavy advertising and marketing and promotional actions – together with important discounting – from the 9 offshore duty free retail operations helped drive the consequence. So did the just lately launched postal supply scheme which permits customers to have their items mailed again to the Mainland as an alternative of getting to hold them.
According to Hainan Daily, China Post mailed a total of 1,046 duty-free items for the days from 11 to 16 February.
The results underline the tremendous momentum underpinning Hainan’s offshore duty free sector. Some analysts had picked a slowdown in sales due to the recent COVID-19 outbreaks in northern China and resultant travel restrictions placed on certain areas.
However, flights to both Sanya and Haikou surged from 1 February as locally transmitted case numbers fell away almost totally, according to leading travel analyst ForwardKeys.
Our special correspondent in Sanya, whose pictures are featured above, noted at the weekend: “It seems busier than I personally have ever seen it. Although local folks are saying travellers may be down -30-40%, I am guardedly optimistic that… retail sales in Hainan travel retail will hit records [this CNY].” His view was emphatically confirmed by the newest outcomes.
NOTE: Look out for our blockbuster particular Hainan version of The Moodie Davitt Report Journal subsequent week put up the Chinese language New 12 months holidays.
ForwardKeys Analyst, Antoine Vialle advised The Moodie Davitt Report on 17 February: “The ahead ticketing scenario is at 50% of 2019’s levels (in comparison with tickets issued on the similar time in 2019). With many final-minute bookings being made, I count on the scenario to maintain enhancing. The common lead time has dropped from 35 days in 2019 to 27 days this 12 months, with tickets issued inside 4 days of departure growing a whopping +186.7% in comparison with 2019. Tickets issued inside two weeks of departure accounted for 57% of all CNY bookings as of 9 February.”
He added: “Sanya and Haikou have almost precisely the identical share and YoY variation. Sanya is at -67.9%, with a 48.0% share vs Haikou at -66.6%, a 47.8% share.”