Feature Report Duty free shopping becomes a way of life
Duty free shopping becomes a way of life
Everyone loves a good bargain, which is why a stop-off at the airport’s duty-free store is a priority for a lot of international travellers. Plenty of people put their electronics, leather goods or perfume purchases on hold until their next overseas trip in order to save a bit of cash since they can be bought so cheap duty-free.
It seems we can only make such big savings when we travel overseas. Just imagine if duty free shopping became a reality outside of the airport walls and was available 24-7. As of April this year, this dream has come true for shoppers in China’s tropical island province, Hainan.
On March 24 this year, the local government of Hainan, a tropical island in the South China Sea, passed a policy that made the city of Sanya a duty-free zone. With this move, China has become the first country to offer duty-free shopping outside of an airport to both domestic and international tourists.
The policy allows both foreign shoppers and those from Mainland China to save up to 30% on their purchases, including perfumes, electronics, watches, fashion and leather-goods. Shoppers must be over 18, be leaving the island by air and make their purchases at least 6 hours before their flight departure.
Enabling both domestic and foreign tourists the same privileges is a big step for the small island, and has already had a whopping effect on tourism. By the end of the opening day on April 20, more than 14,000 Mainland Chinese customers had visited the 7,000 square-metre Sanya Duty Free Store.
Visitor numbers to the store soared over the recent May Labour Day holidays, which saw a daily average of 60,000 shoppers pass through the doors. Eager shoppers lined outside the store from 5am to grab a bargain, and were lucky to get in early before stocks ran out.
The 20% increase in tourism numbers to Sanya over the Labour Day holiday represents a huge shift in travel patterns for the Chinese, whose usual favourite for the long weekend is Hong Kong. Hong Kong has long cherished its reputation as the first choice of destination for the holiday weekend that sees more than 150 million Chinese set off for holidays. The drastic difference in travel patterns this year suggests that change is in the air.
These changes in travel patterns can be attributed to the recent economic boom in China, which has influenced the growing demand for luxury goods. With the new duty free policy in Hainan, 2011 has seen a dramatic change in tide with Chinese tourists flocking instead to the newly duty-free, tropical island in the south.
‘The number of customers who visit the shop daily could reach at least 15,000 and at most 23,000,’ said Hao Wengang, Marketing Executive of the China Duty Free Group.
Chinese tourists are over the moon: ‘we have been hearing about these good deals for months,’ said Wei Qinan, a tourist from the Jiangxi province. ‘Now it is real and I am thrilled. I was in Hong Kong when I heard the news that duty-free shopping was going to be launched here, so I didn’t buy any luxuries.’
The move is not only great for shoppers after a bargain, but it will also greatly benefit the island’s tourism. Hotels on the island saw an increase of 50% booking from the previous year in the weeks leading up to the holiday, with many hotels reaching full capacity.
‘Establishing the Sanya Duty Free Store not only effectively fills the gap in Hainan’s top-grade tourist shopping market, but also promotes Hainan’s tourism infrastructure, gearing it to gain international recognition,’ said China Duty Free Group President Lu Lu, who is set to benefit from the boost of tourism the change in regulations has created.
‘These tourists prefer to buy products related to their travel needs, such as branded sunglasses, clothes and diving equipment. They cost several hundred Yuan cheaper than if they were to buy from Shanghai,’ said Assistant General Manager of Domestic Travel, Spring International, Bian Xiang Guo.
Travel agents and tour operators have also realised the potential in this lucrative market, designing specific tours and itineraries based on duty-free shopping with bonuses like shopping credits and free drinks to appeal to their customers. Before the Sanya Duty Free Store even opened for business over the Labour Day holiday, staff were preparing for 16 tourist groups that had made reservations.
‘We have added duty-free shopping to all our tour packages to Hainan and will arrange regular shopping-themed tours in the future,’ said Zhang Lingjie, director of the domestic tour department at China International Travel Service.
The duty-free policy is part of the Chinese government’s plan to boost Hainan’s reputation over the next few years with the aim of making it one of the top international tourist destinations by 2020. Hainan already sees its fair share of Chinese tourists who venture southward for its beaches, golf and food, and this year it has offered it’s visitors another reason to visit: shopping.
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