As of the six months ended 30 June 2014, sales revenue at Meilan Airport offshore duty free shop reached CNY458.11m (US$74.6m), up by 58.56% year-on-year.

 

The store received 270,848 total customers and sold 701,386 products during the aforementioned period, representing an increase of 45% and 39% respectively, YOY.

 

Hainan has two offshore duty free shops; one of which is located in Sanya city and operated by China Duty Free Group and another located in the domestic terminal of Haikou Meilan International Airport, jointly operated by Hainan Duty Free Shop Ltd. and Hainan Commercial Management Company Ltd.

 

“In order to meet shopping demand of visitors, Hainan Airlines Co., Ltd.  (“Hainan Airlines”) allied with the official booking platform of Meilan Airport Offshore Duty Free Shop, opened up the offshore duty-free on-board booking service on some inbound flights to Haikou,” says Meilan Airport.

 

Meilan Airport says that the offshore duty-free on-board booking service (or pre-order service) began a trial period on 20 June 2014 and is now offered in Beijing, Haikou and Shanghai. Hainan Airlines says it will gradually introduce the service on other domestic flights landing in Haikou port.

 

 

The CNY5bn Hainan Haitang Bay International Shopping Mall is located in Sanya, and covers 70,000sq m of which duty free takes up 45,000sq m. As well as duty free, the mall offers catering services, entertainment, and features ‘culture display functions’. “ It is the largest monomer duty-free shop, which will come into trial operation in September 2014,” adds Meilan Airport.

 

Upon its opening, the former duty free shops in Sanya will cease operation, says the airport operator. “The rapid development of the duty-free industry in Hainan has not only comprehensively improved the international reputation of Hainan, but also driven the rapid growth of local tourism and shopping, and directly or indirectly stimulated the sustained growth of passenger flow volume for Meilan Airport as well,” it says.

 

Meilan Airport’s international terminal obtained a five-star certification from SKYTRAX and became the second five-star terminal in China following Terminal T2 of Shanghai Hongqiao Airport.

 

The West Gallery expansion project, which began in August 2013, is expected to be complete within 2014. During the project the Group moved the former duty-free products warehouse, rebuilding it in another location; this came into service in May 2014.

 

In the first half of 2014, the company’s non-aeronautical revenue growth continued, climbing 10.9% to RMB191,665,724. “Increase of non-aeronautical business revenue was primarily attributable to the Meilan Airport Offshore Duty Free Shop which recorded rapid sale revenue growth,” says the airport.

 

The Group also strengthened business planning of the terminal and actively expanded new business to ensure a sustained growth on non-aeronautical business revenue.

 

In the first half of 2014, the tourism industry in Hainan also maintained a strong momentum of growth, according to the data disclosed by Hainan Tourism Development Commission. As of 30 June 2014, the total number of domestic and foreign overnight visitors to Hainan reached 18.871m, representing an increase of 11.17% YOY.

 

The total revenue from tourism amounted to RMB21.05 billion, representing an increase of 14.3% as compared to the corresponding period of last year.