The tax exemption limit was increased to 100,000, and the seventh navigation right was opened. Is the turning point of Hainan's tourism industry coming?
Sino-Singapore Jingwei client, June 2 (Zhang Yanzheng) Hainan tourism industry is welcoming a lot of positives. On June 1, the Central Committee of the Communist Party of China and the State Council issued the "Overall Plan for the Construction of Hainan Free Trade Port" (hereinafter referred to as the "Plan"), which proposed that the island tax exemption limit be increased from 30,000 to 100,000, and the income tax rate for encouraged enterprises was reduced to 15% 1. The personal income tax rate for talents does not exceed 15%. Residents of the island purchase tax-free imported goods based on a positive list. They support the opening of the seventh air rights in Hainan pilot and allow airlines from relevant countries and regions to carry passengers from Hainan to third countries (regions). Cargo business, etc.
Affected by this news, on June 2, A-share Hainan concept stocks were active. Wind data shows that the Hainan Free Trade Port Index opened up more than 5%, including tourism hotels, horse racing and other sectors opened higher, Dadonghai A, Caesars travel industry daily limit, China International Travel, Fosun Tourism Culture, HNA Holdings and so on.
In the eyes of analysts, the introduction of the Free Trade Port Plan is of great significance to Hainan’s future development, which will not only help strengthen Hainan’s vitality, but also bring new development opportunities to Hainan’s tourism industry. With the liberalization of air rights, airlines of various countries will continue to influx. For Hainan Airlines, a local airline in Hainan, it is both an opportunity and an unprecedented challenge.
Zhang Yanzheng, the new latitude and longitude in the Sanya data map of Hainan
Increased tax allowance from 30,000 to 100,000
The Plan pointed out that the duty-free shopping quota for outlying islands should be relaxed to 100,000 yuan per person per year, and the types of duty-free commodities should be expanded. For tourists who come to Hainan for sightseeing, the previous shopping duty-free quota was 30,000 yuan. After the implementation of this "plan", the duty-free goods "buy-buy-buy" quota will rise to 100,000 yuan, which is a three-fold increase from the previous one. It is 20 times the amount of 5,000 yuan at the beginning of 2011.
It is understood that from 2011 to the present, Hainan has been the pilot area of the tax exemption policy for outlying islands. During the 9-year period, the tax exemption quota has undergone five upward adjustments. According to public information, on April 20, 2011, the pilot implementation of the tax-free shopping policy for Hainan Islands travellers became the fourth region to implement the policy after Okinawa, Japan, Jeju, Matsu, and Kinmen in South Korea. The tax-free shopping limit is per person 5000 yuan each time; on November 1, 2012, the tax-free shopping limit for Hainan Islands travellers was increased to 8,000 yuan per person per time; on February 1, 2016, the tax-free shopping limit was adjusted again to 16,000 yuan per person per year; December 12, 2018 From January 1, the cumulative tax-free shopping limit per person for Hainan Islands travellers will increase to 30,000 yuan per year.
It can be seen that in this "Plan", the tax allowance for outlying islands was raised from 30,000 yuan to 100,000 yuan, the largest increase in Hainan's tax allowance.
Photo of New Jingwei Zhang Yanzheng in Duty Free Shop Shopping Information
CITIC Securities believes that the market has certain expectations for the increase of the tax allowance, but it still highlights the support of the Ministry of Finance and other ministries and commissions for Hainan. The plan does not mention the changes in the threshold of the postal tax and the optimization of the number of purchases. Based on Hainan's high positioning, there is a possibility of further relaxation in the future.
In response to the increase in the quota and the expansion of the types of tax-free products, CITIC Securities stated that generally speaking, the threshold of the postal tax is not raised, the number of pieces is not opened, and only the tax-free amount is increased. Large, but combined with the recently launched Hainan buy-back or Sanya duty-free shop replenishment platform, the increase in the tax-free quota will effectively translate into an increase in per capita consumption.
It is worth noting that on the evening of June 1, China National Travel issued an announcement that it planned to change the company's Chinese name from "China National Travel Co., Ltd." to "China Tourism Group Zhongwai Co., Ltd.", and the English name also changed accordingly. China National Travel said that the name change has been reviewed and approved by the State Administration of Market Supervision and Administration.
In addition, the China International Travel Service announcement also stated that in early 2019, the company had divested its travel agency business, and the company's development strategy had also been adjusted to focus on the tax-free business-oriented travel retail business.
Tianyan check shows that the business scope of China International Travel includes investment and management of tourism services and tourism commodity-related projects. The company owns 5 subsidiaries including China Duty Free (Group), China Travel Investment Development, and China Duty Free Group Sanya City Duty Free Shop. . The data shows that China Duty Free (Group) Co., Ltd. is a state-owned franchise company approved by the State Council to have a tax-free comprehensive license. It has established long-term cooperative relations with more than 300 world's top luxury brands worldwide, providing thousands of varieties to tourists. Of the duty-free shopping service, and through the "China Duty Free" brand, more than 200 duty-free shops have been established in the country (including Hong Kong, Macao and Taiwan).
In an interview with a reporter from China-Singapore Jingwei, a well-known economist Song Qinghui said that the latest move of China National Travel is to cater to the hot spots of the plan, focus on tax-free business, and adapt to the development needs of the new situation.
He believes that the promulgation of the free trade port plan is of great significance to Hainan’s future development, which will not only help strengthen Hainan’s vitality, but also bring new development opportunities to Hainan. "The most important key word in the full text of the "Proposal" is'freedom', and its opening intensity is comparable to that of the Shenzhen Special Economic Zone, which is good for listed companies in relevant sectors in Hainan."
Regarding the policies mentioned in the "Proposal" "Island tax exemption quota increased from 30,000 to 100,000" and "15 days visa-free entry for foreign tourist groups by cruise", Song Qinghui said that this policy will have a great positive impact on the tourism industry, It is also one of the policies that the state has endowed Hainan with the highest gold content and the widest impact. This move will not only meet the tourist consumption needs of ordinary tourists, but also hope to promote the continuous growth of Hainan's domestic tourism revenue and the number of domestic tourists received.
Pilot opening of the seventh freedom rights
The Plan mentions the implementation of a more open air transport policy. On the basis of reciprocity, promote the realization of the third and fourth air rights to and from Hainan in the bilateral air transport agreement, and expand the free trade of Hainan, including the fifth air rights, in accordance with China's overall air transport policy The necessary navigation rights arrangements for port construction. Support the pilot opening of the seventh navigation rights in Hainan. Airlines of relevant countries and regions are allowed to carry passenger and cargo services from Hainan to third countries (regions). Carry out intermodal transportation of air international transfer passengers and their luggage. Support the main base airlines located in Hainan to develop international routes. Bonded jet fuel is allowed for flights from Hainan to and from the island.
According to the information on the official website of the Civil Aviation Administration of China, the seventh air rights refers to the right of airlines of a certain country or region to operate independent routes completely outside their own country or region and carry passengers and cargo between two countries or regions outside the country. For example, the Paris-Singapore route, operated by (Germany) Lufthansa, is the seventh airline granted to Lufthansa by France and Singapore.
Photograph by Zhang Yanzheng of the new latitude and longitude in the aeronautical data map
Civil aviation expert Li Xiaojin said in an interview with the Sino-Singapore Jingwei client that if Hainan opens its seventh air rights, foreign airlines can open flights from Hainan to and from third countries (regions) without returning to their home countries. For example, Singapore Airlines can open a Sanya-Tokyo round-trip route, and the aircraft can continue to fly a Sanya-Seoul round-trip route after executing the flight. If the fifth freedom is open, the aircraft can only operate Singapore-Sanya-Tokyo, and it needs the same flight number and the same aircraft to fly.
Li Xiaojin believes that under the premise of the expansion of the Hainan aviation market, competition among airlines of various countries has intensified. Under various policy blessings, Hainan’s various industries and industries will make new breakthroughs, which is expected to attract more passengers to and from Hainan, and attract airlines from various countries to enter Hainan. With the influx of airlines from various countries, for Hainan’s local airline HNA, it is both an opportunity and an unprecedented challenge. It is expected that the airlines of neighboring countries may take the lead and develop routes from Hainan to Southeast Asia, Japan and South Korea, Russia and South Asia.
"According to the research of the Civil Aviation University team, from the data of the past 40 years, Hainan’s aviation industry has lagged behind the local economic and social development, and the leading role is not yet sufficient. Promote the role, thereby driving the accumulation of capital flow and information flow to achieve the formation of a high-quality and open economic structure in Hainan and even the country. It should be noted that the Hainan air transportation industry must make a difference, respond quickly to market demand, and absorb the early expansion Lessons and lessons fully support the opening up of Hainan." Li Xiaojin said. (Sino-Singapore Jingwei APP)
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