What:  China is increasing retail space fast in Hainan.

Why it is important: Given that borders are still closed due to Covid-19, it is all about getting a critical mass as fast as possible and create new patterns for Chinese tourists, in order to retain a significant portion of their purchases including when international travels will be authorised again.

Tax-free consumption in Hainan is bolstered by the opening of 3 new stores on the island, one at the international airport and the two other ones in the city of Sanya (where the larger measures 95,000 square meters where 350 brands are present). This leads the province to have a total of 7 duty-free malls, with 4 of them operated by China Duty Free Group. The reason why two new companies are joining the market is reportedly to increase competition and differentiation in the offer.

3 more stores are planned in the coming years, with a total surface combined between the 3 stores just opened and the 3 ones planned of 220,000 square meters.

China's Hainan opens 3 offshore duty free shops