CHINA. Further details have emerged about the second major duty free operation to be permitted on Hainan Island, following the introduction of domestic duty free shopping there last year for Chinese citizens.

As reported, Hainan Duty Free Goods Co Ltd is the fifth entity in the country to be granted a duty free license – after China Duty Free Group, Sunrise Duty Free, Shenzhen Duty Free and Zhuhai Duty Free.

Hainan Duty Free Goods Co is a subsidiary of and solely funded by the province’s state-owned enterprise Hainan International Tourism Island Development & Construction Co Ltd.

The company is allowed to import duty free goods and operate duty free shops in Hainan province, under a joint venture with the influential HNA Group. It is set to open the first duty free shop at Haikou Meilan International Airport, where HNA Group is also one of the major shareholders.

As The Moodie Report revealed in May, HNA has appointed Singapore-based Heinemann Asia Pacific as its strategic business partner. The company is a 100% subsidiary of German travel retailer and distributor Gebr Heinemann.

The first store will be located at Haikou Meilan International Airport
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Future plans for further duty free operations within the province are "not excluded" if the Haikou Meilan International Airport duty free operation proves to be a success as expected after the shop opening, which is imminent, an insider told The Moodie Report.

To date, China Duty Free Group has been the sole duty free retailer in Hainan, and has been recording incredible demand at its main Sanya Downtown Duty Free Store on the island’s south coast.

China’s government has designated Hainan as a special economic zone and is encouraging increased investment and competition to advance the province’s development.

Source:Moodiereport