China Duty Free expansion on track

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China Duty Free Group general manager Gai Zhixin confirmed this week that the company is to open three additional downtown stores as tourism to China continues to grow. Among the new shops to open are in downtown Dalian, Xiamen and Qingdao. The Dalian shop is expected to open by the end of this year. Downtown stores such as those in Shanghai and Beijing are accessible to foreign workers in China as well as tourists.

China recorded more than 22.39m entries and departures of international visitors in 2001, 10.5% above the previous year.

China Duty Free predicts that China's entry into the World Trade Organization (WTO) will bring opportunities as well as challenges to the group. Among the major opportunities, China's WTO entry will increase overseas tourist numbers. A major challenge is that the group risks losing some conventional customers as China lowers import tariffs.

"We will improve our services while looking for new opportunities," said Gai. One of the moves being considered, he told the Xinhua News Agency, is to open duty-free shops in other WTO member countries and regions.

• China Duty Free Group operates a network of 153 duty-free shops in 90 cities and border regions of 24 Chinese provinces, municipalities and autonomous regions. With annual sales of $200m it ranks among the world's top 20 duty-free operators.