New pattern emerges in Hainan's offshore duty-free retailing

Hainan Duty-free Co Ltd transferred 51 percent of its stock rights in Haikou Meilan Airport Duty Free Shop free of charge to China National Travel Service Group Corporation on Oct 22.

The equity earnings will be delivered to China International Travel Service Limited, Head Office following approval from relevant authorities, including the State-owned Assets Supervision and Administration Commission of the State Council.

According to Yang Yuying, dean of the Tourism Management College of Sanya University, Hainan's offshore duty-free retail businesses used to be operated by two enterprises, a situation which went against the harmonious development of the industry in the island province.

The equity transfer ended the limited competition of Hainan's two duty-free stores, namely Haikou Meilan Airport Duty Free Shop and Sanya International Duty Free Shopping Complex. It will integrate and optimize the resources of offshore duty-free retailing and help build Hainan into an international tourism consumption center.

China International Travel Service Limited, Head Office is the parent company of Sanya International Duty Free Shopping Complex, which is a travel retail business shop with a total investment of 5 billion yuan ($800 million). It integrates duty-free shopping, taxable shopping, dining and entertainment, and cultural displays. Visitors to the store can look forward to a luxurious shopping experience.