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New duty free quota to come into force on Hainan on July 1

Last year, over 83 million Chinese and foreign tourists visited the island

HAIKOU, June 30. /TASS/. An increased quota of 100,000 yuan (approximately $ 14,140) for duty free purchases at Hainan stores will enter into force on July 1, according to a statement by the Chinese Ministry of Finance. 

According to the new rules, the number of categories of goods sold without duty will also be expanded from 38 to 45, now it will include consumer electronics and other items. In addition, the previously existing restriction was abolished, according to which the maximum price of goods purchased under this rule should not exceed 8,000 yuan per thing.

At the same time, the authorities intend to tighten legal liability for enterprises and individuals involved in speculation and smuggling.

According to the authorities, by the end of 2019, a total of 16.31 million buyers had used this program, purchasing goods worth 53.8 billion yuan.

On April 20, 2011, the Chinese State Council approved the launch of a pilot program for the development of a duty-free store chain on the Island of Hainan to promote the island as a world-class resort. 

In order to create the most favorable conditions for tourists, in December 2018, the authorities decided to increase the maximum amount of duty free purchases on the island from 16,000 to 30,000 yuan (from $ 2.280 to $ 4.480) without restrictions on the number of purchased goods.

The deals 

According to Haikou customs, the total sales of Hainan's duty free shops over nine years of operation exceeded 55 billion yuan (about $ 7.78 billion).

According to official statistics, in 2018, sales at duty free stores on Hainan reached 10.1 billion yuan (about $ 1.47 billion), which is about 26% of the corresponding national figure. In 2019, sales increased by more than 34% to 13.61 billion yuan ($ 1.97 billion).

By 2025, the Chinese government intends to create an "international center for tourism and consumption" on Hainan. In order to do so, the "Eastern Hawaii" with their unique natural landscapes, thick rainforests and great climate will establish a developed network of hotels, which blend perfectly with white sandy beaches stretching along the coastline. The combination of an exotic subtropical nature and a modern eco-friendly infrastructure will boost tourist inflow to the island from the most distant parts of the world.

Last year, over 83 million Chinese and foreign tourists visited the island, the province's tourism industry revenue grew by 11% to 105 billion yuan (about $ 14.89 billion).

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