Hainan duty free gives shoppers a good deal

Yu Ran and Huang Yiming ( China Daily )

Updated: 2011-05-19

Shoppers wait in line outside a Gucci shop as the duty free store opens in Sanya, Hainan province, April 20, 2011. [Photo/Xinhua]

"I've already put the Hainan shopping tour on my must-do list for this year as I don't have enough money to go abroad for duty-free goods," said Zhou Lihua in Shanghai.

Hotels near the store are preparing for an influx of guests.

"Dozens of people have called the hotel since the beginning of April and the number of bookings have increased dramatically since last week," said Zhang Shuzhen, from Intercontinental Sanya Resort.

Airline companies, too, are expecting growing demand for Sanya flights.

"We definitely will add extra flights to meet the demand," said Luo Zhuping, Board Secretary of China Eastern Airlines.

The pilot program sets a rebate cap on commodities worth no more than 5,000 yuan for each purchase.

Eligible tourists, 18 years and older, can purchase tax-free commodities twice a year, while island residents can purchase commodities once a year.

Customers have to fill in their personal details and purchase a shopping card from the cashier before buying and the duty-free products are available for collection at the airport in Sanya. Tourists have to finish shopping at least six hours before flight departure.

Despite the store's expected success, experts believed that Hong Kong's preeminent position will not be under threat.

"I don't see a very serious impact since we need to consider the motivation of tourists choosing their destinations. Mainland tourists come to Hong Kong not only to shop but also for cultural events and entertainment. Hong Kong has its unique attractions that cannot be replaced," said Qu Xiao, assistant professor at the School of Hotel and Tourism Management at Hong Kong Polytechnic University.