The number of domestic tourists in China continued to grow in double digits last year, supported by various Chinese Government initiatives, including major duty free developments which are making it more convenient for shoppers to access their favourite luxury brands without leaving the country.

 

China’s duty free sales reached RMB 39.49bn ($5.9bn) in 2018, according to China Duty Free Group President, Charles Chen, which was an increase of 27.3% year-on-year, with offshore duty free shops – such as those in Hainan – becoming increasingly popular among the Chinese.

 

The growth of DF&TR sales in China far outpaces that of the rest of Asia and indeed the rest of the world  at 9.5% in 2017 (the latest full year statistic available through Generation Research).

 

As reported, Chen confirmed to TRBusiness at the recent TFWA China’s Century Conference that Hainan’s duty free sales rose to RMB10bn ($1.5bn) in 2018 of which CDFG’s Haitang Bay, Sanya store contributed $1.1.bn.

 

During this year’s Spring Festival Golden Week holiday period, Hainan’s duty free sales tipped RMB100m ($14.7m) on two consecutive days (8-9 February), with income at shops in Haikou and Sanya rising by 26.3% to RMB558.27m ($83m).

 

LUXURY GOODS +37% IN CHINA

Closely linked to the duty free industry, the luxury goods market in China also continued to grow in 2018 with sales of luxury goods hitting RMB36bn, +37% yoy, accounting for 14% of all luxury goods sales in China.

It is no wonder that both domestic and offshore duty free stores are registering such positive growth when the number of domestic tourists continue to rise in double-digits. In 2018 the number of domestic tourists in China reached 5.5bn, increasing 10.8%, according to Kevin Guo, General Manager of Strategic Cooperation & Marketing Innovation at Ctrip.

 

Interestingly, the number of outbound tourists reached 149.7m, increasing 14.7%.

“In 2017, more than 900m people travel at the weekend,” said Guo on stage at the China’s Century Conference in Hainan earlier this month. “A fifth of the domestic tourism is weekend travel.

 

“Among the total trips, family travel accounted for 46%. Since 2017, the proportion of leisure tourists has exceeded that of sightseeing tourists.

 

“In 2017, the inter city self driving tourists reached 310m, increasing 17.4% and accounts for 62% of the total number of people travelling in China.”

 

Travellers under 35 years old account for 70% and those under 29 years old make up more than 50% of the total.