Tax refund service is now available at HKRI Taikoo Hui in Jing'an district, Shanghai. [Photo/Shanghai Municipal Tax Service]

Shanghai is experiencing a notable increase in tax-free shopping by foreign tourists, with sales of tax-refunded goods reaching 130 million yuan ($18 million) in the first three weeks of July. This marks a significant rise compared to the same period last year, driven by a combination of an increase in foreign visitors and enhanced payment convenience measures.

Bailian Outlets Plaza in Qingpu district has emerged as a popular destination for international shoppers. The mall has seen a visible uptick in foreign tourists, including both tour groups and individual travelers. "From January to June, our tax-refunded sales increased by over 200 percent year-on-year, and we expect a further 50 percent rise in July," said a mall representative.

The influx of foreign tourists and improved payment facilities have significantly boosted Shanghai's tax-free shopping landscape. According to local authorities, the daily number of tax refund transactions and sales amounts in July have increased by 149 percent and 75 percent respectively compared to last year. The ongoing Shanghai Summer International Consumption Season has further encouraged spending among foreign visitors.

Bailian Outlets Plaza has introduced targeted promotions for foreign tourists for the first time this year. At an instant tax refund point, a Malaysian couple, Calvin and his wife, shared their experience. "We spent over 3,500 yuan on brands like Nike, Lululemon, Bosideng, and Pop Mart. The tax refund process was quick and easy," Calvin said. They learned about the outlet mall through social media and decided to visit due to its proximity to the Hongqiao transportation hub. The couple also benefited from a promotional campaign offering a 100-yuan gift card for spending over 1,500 yuan.

Bailian Group has been actively enhancing its shopping experience for international visitors. "During the Shanghai Summer event, we launched special gifts at 31 tax refund points and distributed millions of gift cards across 40 Bailian commercial entities," said Pu Shaohua, president of Bailian Group. From January to June, sales of tax-refundable products s at Bailian's Shanghai No.1 Department Store and Bailian Outlets Plaza registered a two-to-three fold increase year-on-year.

Official data shows that 2.04 million foreign nationals entered Shanghai during the first half of this year, nearly 2.8 times the number from the same period last year. Experts highlighted the importance of creating a friendly consumer environment for international visitors, emphasizing the need for convenient payment and streamlined tax refund processes. Zhu Min, director of the Shanghai Municipal Commission of Commerce, noted that over 70,000 POS terminals now support foreign card payments, a 110 percent increase from last year.

Shanghai continues to lead the nation in tax-free sales and refunds. In mid-July, the city added 25 new tax refund stores and two new instant tax refund points at HKRI Taikoo Hui on West Nanjing Road and Bicester Village (Shanghai) in the Shanghai International Tourism Resort, located in Pudong New Area. At HKRI Taikoo Hui, a foreign tourist praised the convenience of the tax refund process. "It's great to get cash refunds immediately without having to go to the airport," he said.

HKRI Taikoo Hui currently has 10 tax refund stores, with more preparing to join. Additionally, Bicester Village (Shanghai) also reported that over 80 percent of its brand boutiques offer tax refund services.

Source: Wenhui Daily