CTG charts plan to consolidate presence in Hainan

Consumers pay bills at the Sanya CDF Mall, a duty-free shopping center under China Tourism Group, in Sanya, Hainan province, on April 20. [Photo provided to China Daily]

China Tourism Group, a travel services provider and tax-free product retailer, will add a number of duty-free stores, hotels and logistics facilities in Hainan province this year to seize opportunities in the post-COVID-19 era, said company officials on Thursday.

CTG, the parent company of well-known travel agencies and tax-free goods retailers including China International Travel Service Ltd, China Travel Service (Hong Kong) Ltd and China Duty Free Group, plans to complete work and related services for various brands at Terminal 2 of Haikou Meilan International Airport and open three duty-free stores in Sanya and Boao in 2020, said Li Gang, the group's vice-president.

In addition to building two high-end hotels in Sanya this year, the centrally-administrated State-owned enterprise CTG is currently building a 12.8 billion yuan ($1.81 billion) tax-free commercial complex in Haikou, Hainan's provincial capital. The company started to operate the second phase of the complex which includes foreign brand designer stores, a cinema, a children's park and restaurants in Sanya in January.

Many opportunities are also emerging from the provincial government's announcement last month that it would introduce more open visa-free entry policies and further simplify entry procedures for cruise ships and yachts, as well as the central government's plan to build the province into a high-quality pilot free trade zone by the end of 2020 and a free trade port by 2035, Li noted.

Zhou Lingjun, deputy general manager of CTG's Hainan regional headquarters, said the company's investment in a Hainan logistics center project will effectively support the growth of the China (Hainan) Pilot Free Trade Zone and the China (Hainan) Free Trade Port, as well as raise people's awareness of Hainan's mature duty-free shopping environment around the world.

The ongoing construction project of the logistics facility is located in the Haikou Comprehensive Bonded Zone. Zhou predicted this facility will become a modern logistics distribution and e-commerce sorting center for Hainan province after its completion.

After moving its headquarters from Beijing to Hainan in 2018, the group has integrated and adjusted its business layout and organizational structure in the tourism industry, ranging from travel services and investment to hotel operations in the past two years.

Supported by 43,000 employees, CTG had 120.4 billion yuan in assets, 584 subsidiaries, two cruise liners, over 170 hotels and more than 200 duty-free stores across the world at the end of 2019.

Zhou said the company will take multiple measures including establishing a holiday-themed consumer finance firm as well as promoting short-distance tours and tailored tourism to further meet consumer demand to mitigate the impact caused by the outbreak.