TravelNews

[Travel News]: Hainan Island’s sales may soften just as LVMH and Dufry drop anchor

TheTourAttraction.com aims to provide the latest global travel and free travel news, travel and visa policies, and flight information. We hope to provide insights into tourism market, technology and development trends with everyone by providing the latest relevant information. Despite the raging COVID-19 epidemic in 2020, we always firmly believe that mankind will overcome the disease and the tourism market will definitely recover. TheTourAttraction.com look forward to your attention and support, and witness the development of the global tourism industry with us. Looking forward to the information TheTourAttraction.com provide can help you. We will continue to follow up and obtain the latest data, and look forward to your attention and support.

The following is the [Travel News]: Hainan Island’s sales may soften just as LVMH and Dufry drop anchor from [Forbes] recommended by TheTourAttraction.com:

This is a big step for Dufry as it is a first toe in the water of the mainland China duty-free market.

The one bright spot for the battered global duty-free industry could fade a little in the run-up to Chinese New Year on February 12 as new figures from seat analyst OAG point to a “collapse” in Chinese domestic passenger capacity.

The offshore island of Hainan—currently being fast-tracked as a free trade port and a global investment hotspot by China’s government—saw duty-free sales, including tax-free items, increase at an incredible 127% in 2020 to top USD 5 billion (RMB 32.7 billion) according to the Hainan Provincial Bureau of International Economic Development.

Thanks to a tripling of the tax-free allowance in July and a very limited ability for Chinese nationals to travel abroad due to Covid-19, there was an influx of 3.4 million duty-free shoppers to the island last year, fueling the development of new and expanded malls.

That paints a worrying picture for two newly-arrived retail emporia in Hainan. On January 31, DFS Group—majority-owned by luxury conglomerate LVMH Moët Hennessy Louis Vuitton—and its Chinese partner Shenzhen Duty Free Group inaugurated the first phase of an impressive downtown duty-free retail complex in Haikou Mission Hills.

The same day, airport duty-free giant Dufry and Hainan Development Holdings opened their first duty-free shop called GDF Plaza at Haikou’s Mova Mall. This is also a first phase and offers a selection of international brands and local premium labels in the beauty, wine and spirits, sunglasses and food/confectionery categories. The mall welcomed 22 million visitors in 2019.

This is a big step for Dufry as it is a first toe in the water of the mainland China duty-free market—although the company has a long-standing duty-paid footprint there going back to 2008.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button