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Hainan issues $3.4 million worth of coupons to boost duty-free sales

Hainan Airlines currently participating in the campaign

HAIKOU /China/, August 28. /TASS/. Hainan Provincial Department of Commerce plans to issue coupons for duty-free goods and air tickets worth 24 million yuan ($3.4 million), the Hainan International Communication Network (HICN) reported.

The campaign will run from the end of August to October. The local authorities want to stimulate the development of tourism on the island and increase the volume of sales in duty-free shops. According to the department, 15 million yuan in the form of coupons will be used to buy goods in duty free stores, and the remaining 9 million yuan will provide their owners with discounts on airline tickets.

Hainan Airlines is currently taking part in the promotion. Other airlines may join later. In addition, Hainan Province is currently hosting the third annual International Duty Free Festival, which is accompanied by various themed promotions.

According to official figures, sales at Hainan's duty-free shops fell 29.9% in the first half of the year to around 18.46 billion yuan (about $2.6 billion). Authorities attributed the drop in sales to a reduction in the number of shoppers visiting such stores.

Hainan authorities launched a pilot program in April 2011 to create a developed duty-free network on the island. Duty-free shops are located in the province's administrative center - Haikou city; the resort city of Sanya; the coastal city of Boao in Qionghai county in northeastern Hainan; and Wanning.

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