Duty-Free Sector Expects Growth After WTO Entry

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Last updated at: (Beijing Time) Thursday, December 13, 2001

Duty-Free Sector Expects Growth After WTO Entry

Experts attending the National Duty-Free Conference Wednesday agreed that China's duty-free industry will develop more quickly after the country became a formal member of the World Trade Organization. After China enters the WTO, the thriving tourism industry will provide more opportunities for the duty-free industry. The influence of China's duty-free industry will strengthen day by day in the Asia-Pacific region.

Opportunities By Thriving Tourism

The duty-free products and consumers come from foreign countries. The thriving tourism industry will provide more opportunities for the duty-free industry, said Gai Zhixin, president of the China Duty-Free Group (CDFG).

According to statistics from the China National Tourism Administration, there were over 42 million foreign arrivals in the first half of this year, providing over 8.4 billion U.S. dollars worth of tourism revenue.

The World Tourism Organization predicted, that, by 2020, China will become the world's largest tourist destination, with over 137 million visitors. This will ensure a promising future for China's duty-free industry.

Influence by China's Duty-free Industry

Gai said the influence of China's duty-free industry will strengthen day by day in the Asia-Pacific region.

Up to now, China has set up over 150 duty-free shops, forming a network covering 90 cities in 24 provinces. The annual sales volume surpasses 200 million U.S. dollars, ranking among the top 20 in the world.

Development Following WTOI Accession

The price of duty-free products following China's WTO accession will be equal to others in foreign countries, he said.

Meanwhile, China's methods of regulating the market, such as cracking down on smuggling, will help protect the duty-free industry and improve it.

Gai said, the duty-free outlet employees will enhance the retail level, strengthen cooperation with industry and develop chain retail companies.

China Reports Flourishing Duty-Free Shop Business

Duty-free shops first appeared in China in 1979. China now has about 150 such shops, located mainly in major entry-exit port cities across the country.

China's duty-free goods sales are increasing rapidly, and the figures now rank among the world's top 20. Chinese-manufactured commodities currently account for 15 percent of the total sales volume in China's duty-free shops, according to the China Duty-Free Goods Group Company, the state- authorized exclusive operator of duty-free shops since 1984.

The duty-free sector has generated foreign exchange of over 2 billion U.S. dollars over the past 20-plus years, and its annual revenue reached 200 million U.S. dollars last year.

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