China's Hainan Province is expected to open more duty-free shops and double the quota for duty-free shopping, the Shanghai Securities News reported on Monday.
According to a document about quota for doubling duty-free shopping sent to the Hainan finance department by the Ministry of Finance last week, finance authorities will do a further study on the details.
"As far as I know, the quota for duty-free shopping in Hainan Province will be raised step by step. It could double in amount this time from 16,000 yuan (2,310.6 U.S. dollars) per person annually to approximately 30,000 yuan (4,332.3 U.S. dollars)," an insider told the Shanghai Securities News.
This will be the third time Hainan has raised their quota for duty-free shopping since April 2011 when the policy was first carried out.
Currently, the quota has been raised from an initial amount of 5,000 yuan (722.1 U.S. dollars) per person annually to 16,000 yuan. The types of goods available have expanded from 21 to 38 items.
Tourists traveling by train can enjoy duty-free shopping as well. Also, shopping sites have extended from physical to the online stores.
Statistics showed that from April 2011 to April 2018, two offshore duty-free shops in Hainan's Sanya and Haikou cities under the supervision of customs sold about 47.97 million duty-free commodities, worth 37.59 billion yuan (5.4 billion U.S. dollars).
During the National Day holiday this year, the two shops sold commodities worth 240 million yuan ( 34.7 million U.S. dollars), up by 16.81 percent.
According to the Hainan local authorities, the quota expansion will benefit Hainan beyond doubt. Sales would increase by 20 percent at least every time the adjustment was made.
Meanwhile, more duty-free shops are expected to open, and they will spread into some major cities and counties in Hainan, according to the plans.
An insider told the Shanghai Securities News that two more shops could be opened in the province's Boao and Xiuying Ports.
(1 U.S. dollar = 6.93 yuan)
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