Hainan offshore duty free sales outstrip visitor numbers – The Moodie Davitt Report

CHINA. Hainan’s offshore duty free sector outperformed the tourism market by a ways final 12 months, based on newest official statistics. The province acquired 64.55 million guests in 2020, some -22.2% down on 2019, pushed by the affect of the COVID-19 pandemic, notably early within the 12 months. Guests from the Mainland declined by -18.6% to round 54.4 million, whereas numbers from Hong Kong, China fell by -79% to 2.72 million.

The variety of in a single day guests to Haikou fell -23.3% and to Sanya by -24.1%,

Regardless of the discount in arrivals, sales at Hainan’s offshore duty free outlets (together with tax-paid objects) rose by +127% 12 months-on-12 months in 2020 to round CNY32.74 billion (US$5.05 billion). The visitor numbers underline the dramatic success of Hainan’s enhanced offshore duty free purchasing coverage launched on 1 July, which tripled the annual allowance to CNY100,000 (at the moment US$15,470), expanded the variety of classes (and cosmetics skus) and eliminated the earlier CNY8,000 (US$1,235) single-buy restrict.

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2021 has began properly too. As reported, for the essential seven-day interval February 11 to 17 Spring Competition vacation interval, whole sales from the 9 licensed shops exceeded CNY1.5 billion (US$231.9 million), of which duty free objects 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 objects accounted for the steadiness.

Hainan acquired over 4.5 million guests in the course of the Chinese language New 12 months holidays. The native hospitality trade’s income exceeded CNY5.8 billion (US$900 million) for the interval. Lodge occupancy charges in Sanya hit 61% for the interval whereas these in Haitang Bay – house to the CDF Mall throughout the Sanya Worldwide Duty Free Procuring Metropolis – reached 72% and Yalong Bay 74%.

Sanya’s tourism revenues exceeded CNY2.76 billion (roughly US$427 million) in the course of the February 11-17 interval, a rise of 141% 12 months-on-12 months. Sanya Phoenix Worldwide Airport served about 338,000 passengers in the course of the vacation week, with a every day common of round 48,000. The peak site visitors occurred on 17 February with 63,000 passengers. Most flights got here from Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and Chongqing.

The capital Haikou acquired over 1.17 million vacationers in the course of the holidays, up +607.87% on the COVID-hit 2020 equal. Based on official figures over 1 million individuals visited Haikou’s key sights, together with its three downtown duty free shops. Tourism revenue for the vacation interval elevated by +432% to CNY1.29 billion (about US$200 million).

Observe: Look out for our particular Hainan-focused version of The Moodie Davitt Journal, out this week.