Hainan Province to raise duty-free limit

Chinese tourists are well-known as big spenders at duty-free shops all over the world. But now they have more options at home. In 2011, Hainan piloted a duty-free policy, allowing non-Hainan residents leaving the island, to make duty-free purchases of up to 5,000 yuan twice a year.

But now this limit will be raised to 8,000 yuan per person, and will take effect on November 1. Li Kefu takes a look at the growing appetite of Chinese shoppers.

It's opening time at a duty-free mall in Sanya city in China's Hainan province. The excitement among shoppers makes it seem as if everything is free--far from it, but still up to 50% cheaper than compared with the rest of China.

The growing appetite for imported luxury goods from China's expanding middle-class is creating a huge demand. And their strong buying power has proven that the purchase limit, which is five thousand yuan per person, is just too small.

Miss Li, a tourist, said, "The 5000 yuan limit is way too little if you want to buy leather bags and suitcases. It only works on cosmetics. Many friends of mine think it's better to go to Hong Kong instead. They need to raise the limit."

And Miss Li is certainly not alone.

Guan Wu, deputy manager of Sanya Store, China Duty Free Shop, said, "We always hear consumers complain about the 5000-yuan purchase limit. They say it's not enough for them to have a good shopping experience here."

In order to cope with demand, the limit is now being raised by more than 60%. According to the Ministry of Finance, starting November 1, the purchase limit will be raised to 8,000 yuan. Other restrictions will also be eased. These measures aim to further promote the tourism industry in Hainan, with the goal of making it one of the world's top tourist destinations.

During the last National-day holiday, nearly thirty thousand people visited the duty-free mall in Sanya, spending more than 82 million yuan. It's estimated that raising the purchase limit will further boost business here.

Miss. Li says she will come back to Hainan, to enjoy the beach, the sunshine, and of course to shop.