Hainan Offshore Duty Free Association inaugurated in Sanya

CHINA. Hainan’s travel retail sector took an important step forward on 19 March with the establishment of the Hainan Offshore Duty Free Association.

The news was first carried by Hainan Daily, part of Hinews, The Moodie Davitt Report’s strategic and information-sharing partner in Hainan.

Under the supervision of the Hainan Provincial Department of Commerce, the association has been co-founded by nine duty-free retailers. Its mission is to promote the coordinated development of Hainan’s offshore duty-free entities as well as the sector’s overall ecosystem, aiming to build a world-leading industrial cluster.

The founding members are China Duty Free Group (Hainan) Operation Headquarters Co; China Duty Free (Haikou) International Duty Free Shopping Complex Co; Hainan Duty Free Co; Hainan Tourism Investment Duty Free Co; Global Consumer Boutique (Hainan) Trading Co; China National Service Corporation (Sanya) Duty Free Co; Shenzhen Duty Free Group (Hainan) Operation Headquarters Co; and Hainan Outlets Tourism Development Co.

The association aims to promote government coordination and promotion; enhance both competition and cooperation among market players; strengthen joint publicity and promotion; and improve global procurement bargaining power.

According to the association, its responsibilities cover five main areas:

1. Assisting government departments in industry management, strengthening both industry and self-regulation.
2. Conducting research into industry-related data and information, and providing recommendations for government departments on industry policies and development plans. Offering related information and legal consultation services to members.
3. Providing personnel training services for members to improve the industry’s overall quality and management capabilities.
4. Helping members enhance their voice and bargaining power when introducing international brands; promoting the supply of high-quality duty-free goods; and assisting in building an efficient warehousing and distribution system.
5. Organising international trade and economic exchange activities; researching and sharing domestic and international duty-free industry trends and examples; and handling tasks commissioned by government and other relevant departments.

The Hainan Offshore Duty Free Association said it considers the prevention of daigou activities a fundamental prerequisite for ensuring the steady progress of the sector’s daily operations and a top priority for its work.

The trade body pledged to actively guide all duty-free entities on the island to adhere to the principles of “maintaining momentum, upholding standards, keeping up pace, and sustaining efforts”.

The association will also consistently implement various directives from the Ministry of Finance, the General Administration of Customs and the Hainan Provincial Party Committee.

With Hainan soon to become fully tax and duty free, the association said it will seize the opportunity presented by this milestone and help accelerate the high-quality development of the province’s offshore duty-free sector.

It also plans to facilitate the repatriation of overseas consumption while actively coordinating and supporting its members in expanding their core businesses. This will assist Hainan’s development of as a Free Trade Port and international tourism consumption hotspot, the association concluded.