World's largest duty-free shop opens in Sanya
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E-mail Xinhua, September 2, 2014
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Customers select jewelry in Haitang Bay duty-free shopping center in Sanya, South China's Hainan province September 1, 2014. [Xinhua] |
Drawing money back
China Duty Free Group has promised that products in Sanya will be no higher than those in Hong Kong, the hottest destination for China's luxury shoppers, and 15 to 30 percent cheaper than in other parts of China. Most tourists are delighted to be saved a trip to Hong Kong or even further afield to feed their hedonistic habits, while others are more reserved in their enthusiasm. One tourist pointed out that DFS in Seoul, more than 2,500 kilometers away, have no purchase caps and better bargains. China's cautious attitude imposes limits on the amount that can be spent and the number of transactions.
Capital outflow has been a headache for the Chinese government. Zhou Ting, executive director of the luxury goods research center at the University of International Business and Economics, believes Hainan's DFS can halt the trend of affluent Chinese heading overseas to fork out their cash. China's overseas luxury consumption last year accounted for 73 percent of the country's total for such spending, up from 65 percent in 2012.
Lu Zhiyuan, HTDC director, said the Hainan government was considering opening shopping centers in other cities such as Wanning. Plans to build a new DFS in downtown Haikou and develop online stores are under careful study.
Zhou believes the policy will be expanded if Hainan's trial proves successful. Xia Feng, a researcher at the local institute for reform and development, said Hainan was likely to adopt more duty-free policies over the next two years, allowing more domestic and foreign companies into the sector.
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