China’s Hainan Island is amplifying its reputation as a tourism hotspot with a series of activities in London, UK designed to promote the construction of its free trade zone (FTZ).

The 2018 Hainan Free Trade Zone Comprehensive Promotion Conference held at the capital’s Landmark Hotel on 13 July drew representatives from more than 500 companies and service industries who were given an update on plans to develop the China-backed Hainan Free Trade Zone and Port pilot, reports the Hainan Provincial Tourism Development Commission.

Fuelling this effort is a half-year London advertising campaign across 50 taxis, 30 buses and mobile billboards to promote the island’s visa-free tourist policy for 59 countries, which became effective on 1 May.

Inaugural, twice-weekly direct flights between Sanya to London on China Southern Airlines were also launched last week (12 July), alongside a ‘Love Shanghai South’ marketing promotion online and offline offering flight giveaways and luxury hotel breaks to Hainan for lucky winners.

Leading broadsheet the Daily Telegraph, Facebook, Sky TV and other ‘new media’ are reportedly advertising the promotions.

SANYA-LONDON FLIGHTS

Mao Chaofeng, Executive Vice Governor of Hainan Province; Sun Ying, Director of Hainan Provincial Tourism Commission and other dignitaries attended a ceremony held at Sanya International Airport International Terminal to mark the first flight of China Southern Airlines’ Airbus, carrying 214 people.

The island has long-signalled its intention to increase offshore duty free shopping facilities, with two further stores – one in Haikou and another in Qionghai – planned to open later this year, TRBusiness reliably understands.

As is well known, China Duty Free Group operates at the Haitang Bay Sanya International Duty Free Shopping Complex, while HNA Group has a foothold at Haikou Meilan International Airport.

“There are many rumours about the operator and location, the true details will only be revealed by the government in the future,” commented a well-placed Hainan source.

“Besides the coming DF shops, there will be bigger news on Hainan DF market in the months ahead under the policy of Hainan Free Trade Zone & Port.”

The island’s special duty free programme began trading in 2011 and has achieved marked success.

SECOO EYES DF

In separate but important news, Secoo Holding Limited (Secoo) – which describes itself as ‘Asia’s largest online integrated upscale product platform’ – has struck a deal with Hainan Province’s Department of Industry and Information Technology.

The tie-up, instigated on 30 June, will focus specifically on the establishment of the Hainan Free Trade Zone, which includes a heightened focus on duty free shopping and cross border e-commerce, among other initiatives.

Secoo, which claims to have amassed 20 million high-end consumers and covers more than 3,000 luxury brands, will use its experience to develop online and offline duty free services, build a duty free shopping mall and other facilities.

In a statement, it says its aim is to ‘enrich product categories, extend channel resources and improve the consumption experience’ in a move ‘strongly supported by the Hainan government’.

As reported, inbound tourism to Hainan jumped by 50% to 1.1m in 2017, with growth in total tourism revenue (+21%) outpacing that of tourist numbers (+12%).

The Chinese Ministry of Finance moved to double the duty free special allowance in 2016 to RMB16,000 ($2,432) for mainland visitors.

Stay close to TRBusiness for further developments on Hainan’s FTZ and duty free plans…