2025海南旅游零售白皮书

Moving forward withresilience to embraceunlimited opportunities Foreword Hainan is the only off-shore duty-free shopping destination in China, and its travel retailmarket is steadily gaining momentum. Despite fluctuations in 2024, the first quarter and thefourth quarter recorded 44.6% and 24.9% quarter on quarter growth respectively, reflecting athriving market. According to the latest policy, the annual duty-free shopping quota foroffshore tourists in the Hainan Free Trade Port is CNY 100,000, one of the highest globally.This and the high-quality line-up of duty-free stores on the island has attracted a largenumber of domestic and foreign tourists and contributed to the development of Hainan’sthriving travel retail sector. But times are changing and Hainan is having to evolve accordingly. Hainan has launched newtourism models such as “self-driving tours + camping” and “low altitude tourism”. It has alsocontinued to pursue policy innovation and business integration in order to further diversifybusiness types and service models across the travel retail sector, consolidating its marketleadership. However, global economic uncertainty has resulted in greater volatility across thetravel retail sector, globally and in China. In particular, against the backdrop of inflationarypressure and the related erosion of spending power, the models that Hainan has traditionallyused to promote tourist spending are facing stiff challenges. Consumers’ increasing focus onvalue for money is driving the travel retail industry to constantly innovate service models andimprove the quality of its offer. At the same time, the rise of emerging markets, such asSoutheast Asia and the Middle East, has also brought about a new competitive landscape forHainan. In the face of these changes, Hainan needs to focus on core areas—such as tax regimeinnovation, operations and management, and application of AI technology—to upgrade andexpand the local travel retail market. KPMG ChinaandThe Moodie Davitt Reportlaunchedthe2025 Hainan Travel Retail Whitepaperin the fifth year, which is provides a comprehensiveoverview of the duty-free and travel retail markets from a global perspective, offers insightsinto Hainan's travel retail sector, including its current situation and development trends, andprovides a forecast for tax reforms that will take hold after a separate customs jurisdiction isput in place in Hainan. The report aims to serve as a valuable reference for decision-makersin the industry, help enterprises accurately understand sector dynamics, and promote thehigh-quality development and sustainability of Hainan’s travel retail sector. Martin MoodieFounder & Chairman,The Moodie Davitt Report Nicole ZhangSenior Office Partner, Hainan KPMG China Contents 01Data-driveninsightsintothetravelretailmarketfromaglobalperspective 02Adata-basedoverviewoftheglobaltravelretailmarket 03Hainan’stravelretailmarket:Trendsandinsights OutlookontheHainantravelretail marketafterislandseal-off Conclusion Data-driveninsightsintothetravelretailmarketfromaglobalperspective •Data-driven insights into the travel retailmarket from a global perspective •The rising popularity of service-orientedconsumption is redefining the structureof consumer spending and thecompetitive landscape in the retailmarket •Chinese consumer sector 2024buzzwords Data-driveninsightsintothetravelretailmarketfromaglobalperspective Integrated development of the travel retail and duty-free sectors meet the immediate needs of tourists, andinternational luxury brands have a significantinfluence in such markets. Due to tax incentives,among other factors, duty-free goods are usuallycheaper than those available in the retail market,which increases consumers' willingness to makepurchases and drives the development of the entiretravel retail ecosystem. As the name implies, "travel retail" is a combination oftourism and retail business. Merchants operatingunder this model provide goods and servicestargeting tourists in various scenarios intransportation hubs or tourist destinations. Airports,cruise ports, high-speed railway stations and borderports tend to see large flows of tourists, and as aresult, they are ideally suited for retail consumption.As merchants mainly operate under a rent sharing orfranchise model, their operating results are highlydependent on steady tourist flows. In case of forcemajeure factors, such as flight cancellations or travelrestrictions, the travel retail market is often severelyimpacted. The duty-free industry sells duty-free goodsspecifically for eligible international tourists, such asinbound tourists. These goods usually includecosmetics, alcohol and luxury goods, and as they aretax-exempt, they are priced more competitively.According to the latest policy, the annual duty-freeshopping quota for offshore tourists in the HainanFree Trade Port is CNY 100,000 (approximately USD14,191), one of the highest quotas globally. The duty-free industry is an important pi