Bloomberg Businessweek - USA (2021-02-08)

◼ BUSINESS Bloomberg Businessweek February 8, 2021

13

Bargain-huntingtravelershavelongfattenedthe

profitsofduty-freeshops,butCovid-19travel

restrictions have hammered those perfume-

suffusedemporiums.Exceptinoneplace:China’s

HainanIsland,whereevendomesticvisitorscan

shopdutyfree.Lastyearthegovernmenteased

restrictions on such purchases as more Chinese

tourists unable to journey abroad flocked to the

island, providing a lifeline for the global industry.

Duty-freesalesinChina“havebeenextremelysolid

inthelast 12 months,”saysJean-MarcPontroué,

chiefexecutiveofficerofhigh-endwatchmaker

● China is shoring up the tax-free shopping industry by letting domestic tourists into stores

Taking the Travel Out

Of Duty Free

Panerai, which is adding two duty-free locations on

Hainan this year. “We remain optimistic, because

theChinesecanhardlygetoutofChina.”

ChinaisnowextendingpartsofthatHainan

policytothemainland,withduty-freeshopsin

centralShanghai,Beijing,andabouta dozenother

cities. Those operations look pretty much like other

upscale retail outlets—pricey skin creams, displays

of hand-made wristwatches, sumptuous leather

handbags—exceptthatshopperswhocanprove

they’vebeenoverseasinrecentmonthsdon’thave

topayleviesashighas30%.

▼ A duty-free mall

in Sanya

GUO CHENG/GETTY IMAGES