Higher duty free limit to benefit tourism

Tourists heading to Hainan may get to spend more on duty-free products in the tropical island province as the 5,000-yuan ($760) limit might double.

According to China News Service, the tax exemption may be increased to between 8,000 yuan ($1,260) and 10,000 yuan per purchase.

Tourists would be able to make four purchases a year in Hainan.

The current policy prevents mainland visitors from paying various types of taxes on up to 5,000 yuan worth of imported goods bought at selected duty-free stores. Tourists 18 years and older can purchase twice a year, while island residents can make a purchase once a year.

An official?with China Duty Free Group in Beijing told China Daily that her company was looking forward to further improvements of the current policy.

"As both our customers and we noticed, there's lots of space in the market," said the official, referring to customer complaints that 5,000 yuan was too small for purchasing any "real big brand".

"The policy should take the market and consumer's consumption customs into consideration," she added.

Guo Zhiming, an official with the Hainan provincial government, said the policy is essential to Hainan's aim of becoming an international resort within 10 years.

"The policy is here as part of the basic infrastructure to attract more tourists in the long run," he said.