Tax Rebate Brings Huge Business Opportunities To Hainan'S Garment Industry

On the first day of 2011, a pair of summer days in Sanya

Although the news of Hainan's "departure tax rebate" has long been booming, many overseas tourists in Sanya still do not know much about it.

Indeed, relative to the late arrival of the policy, the relevant departments are also very cautious about the announcement of the exact "departure tax rebate" designated store.

Even the summer department store, it is also a day before New Year's day, knowing that it has become the only departure tax rebate shop in Sanya.

The first batch of designated stores finally announced that Sanya summer department store became one of the only 3 designated shops in Hainan, and the only one in Sanya, the famous tourist city.

The other two designated stores are Minsheng department stores and Sheng Sheng Department stores in Haikou.

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This applicable crowd is only a policy for overseas people, but it makes the domestic tourists in Hainan react indifferently.

In fact, whether Sanya or Hainan as a whole, the market of domestic tourists is the most exciting.

Among the 21 categories of tax rebates, clothing, shoes and hats, jewelry and other clothing accessories rank first.

After being told that time is running out, the most obvious publicity of summer department's "departure tax rebate" publicity is hanging two red banners on the plaza outside the mall, which reads, "warmly celebrate the summer department store as a pilot store for departure tax rebates".

Inside the shopping mall, only the drawback guide for overseas passengers shopping is placed in the collection point of tax refund application, which is obviously not enough.

He Zhongwu, the duty manager of summer department store, said, "many overseas tourists did not bring their passports when they bought goods because they did not know that they could refund the tax."

Since the new year's day announced that it has become a tax rebate designated shop, many inbound tourists do not know the policy because they do not have a passport with them and can not apply for the exit tax refund application form.

On the contrary, many domestic tourists take the initiative to ask for the application form, asking when they can be exempt from domestic tourists.

On the evening of January 3rd, the application for departure tax rebates issued by the summer shopping center totaled 12 orders, of which 11 were Russian tourists.

Nevertheless, the attraction of departure tax rebates for Russian tourists is still limited.

"What we are more important is still based on the high-end consumption in China."

He Zhongwu, assistant general manager of summer shopping mall, said.

On the way to Yulin Boulevard in Sanya, there were local women holding roses.

When they meet tourists from the mainland, they continue to "go on the road" like strangers; and if they come to the Yellow haired foreigners, they will reflect the colorful flowers and say "hello".

Experience tells them that the business of flowers is on these foreigners.

However, the local people who sell flowers do not realize that the luxury market owners are not looking forward to these "offshore" markets.

In the Donghai District of Sanya, overseas tourists can be seen everywhere, but they are still hard to compare with the huge number of domestic tourists.

In the whole of Hainan, the disparity between overseas tourists and domestic tourists is even more disparate.

In 2010, the proportion of inbound tourists in Hainan was still small.

According to the statistics of Hainan Tourism Bureau, in January 2010 ~11, Hainan received 23 million 190 thousand overnight visitors, an increase of 11.6% compared with the same period last year, while the total number of inbound tourists increased by 20.3% compared with the same period last year, accounting for less than 3%.

"At present, there are not many foreigners in Hainan, and 97% of them are Chinese."

Xia Feng, director of the Hainan Development Research Institute of China (Hainan) Institute of reform and development, bluntly said, "therefore, more policies need to be launched, and the focus and interest should be" Islands's tax exemption "policy.

In fact, the duty exemption rate in Islands was before the formal implementation of the tax rebate policy. The duty free shop in Hainan, the first duty-free shop in Sanya, was opened in Sanya in September 2009.

In the vicinity of Sanya's East China Sea, the duty free shop of the group is magnificent. The famous international brands in the store are dazzling.

It is understood that the store's goods than the domestic general store price 10%~40% low.

Such a discount range is obviously attractive to many domestic consumers.

However, due to foreigners, overseas Chinese and Chinese compatriots in Hong Kong, Macao and Taiwan, the luxury store has been running poorly since its opening.

It is reported that in the year of opening up, the store lost 8 million 568 thousand yuan.

After the implementation of the tax rebate policy, Sanya duty-free shops continue to maintain quiet luxury.

During the period, a domestic tourist mistakenly thought that he could be duty-free in Islands, and went to the store to ask.

The front desk clerk explained to the guest: "what you mean is" Islands tax exemption ". As far as we know, the policy is down now, but it is not yet clear when it will be implemented. You can call first when you come next time.

It is reported that Islands duty-free may be implemented after the lunar new year, and the first designated store is most likely to be Sanya duty-free shop.

What Hainan lacks is popularity. Although tourism has brought a lot of fame to Hainan, its income is not large.

Sanya has very few passengers during the off-season, and the service industry is not very convenient.

At home and abroad, any coastal tourist city, service industry and tourist shopping are strong profit points, but they do not rely on tax rebates and tax exemption to stimulate consumption.

The important thing is whether there is a convenient payment system. Can all countries' currencies and credit cards be used in Hainan? For example, when the tax rebates are left, can consumers enjoy convenient pick-up, complete customs clearance in a short time? The tax exemption that is jointly supported by the soft environment of related financial insurance, services, logistics and pportation can make the tax exemption policy bigger and make a distinctive feature so as to achieve the goal of the international shopping center.

Lv Yong, deputy director of the Hainan Provincial Department of finance, said that offshore duty-free policy will introduce powerful companies to build large duty-free shopping malls, introduce famous international clothing brand discount stores, and maintain a discount of 70 percent off ~7 for a long time, and build leisure facilities such as large golf courses to attract high-end domestic income groups to Hainan for consumption and holiday in Hainan.

Li Xuerong, a senior research fellow at CIC, said that in most European countries, North America and Asia, Japan, Thailand and Singapore, their products are subject to 6%~20% rebates, and some European countries have even rebate up to 15%~20%.

Obviously, Hainan's 11% tax rebate rate is not "paradise" for overseas tourists, let alone Hainan face the strong competitive pressure of shopping paradise Hongkong.

Liu Longheng, director of the tax law research center of Peking University, believes that the tax rebate rate will still have room for improvement in the future.

"Compared to the 17% tax rate, the tax rebate rate of 11% is not high, and there will still be room for improvement in the future, such as 12% or even higher."

Xia Feng, director of the Hainan Development Research Institute of China Institute of reform and development, said: "gradually making Hainan a world shopping center, tax exemption is only the most fundamental step in tourism and tourism shopping."

At present, the consumption of overseas tourists in Hainan is less than 20% of their total consumption. After the departure tax rebate business is launched, the proportion of shopping consumption is expected to reach 40%.

Unlike the duty-free shops that sell mainly imported goods, the majority of Chinese tax rebates are made in China, which undoubtedly brings good news to Chinese clothing brands.

The timely introduction of "Islands duty-free" by the Chinese people will provide more opportunities for famous brands at home and abroad to promote brand image, solve the inventory of discounted goods, and bring more expectation to Hainan's tourism industry.