Core Viewpoint - Japan is considering increasing taxes on foreign tourists, including the potential elimination of tax-free shopping and an increase in departure taxes, to address issues of "over-tourism" and illegal resale practices while balancing government revenue needs [1][2][3] Group 1: Tax Policy Changes - The Japanese Ministry of Finance announced that the "International Tourist Tax" (departure tax) for the fiscal year 2024 has reached a record high of 48.1 billion yen, driven by an increase in foreign visitors [2] - A proposal from some ruling party members suggests the "principle abolition of the tax-free shopping system," citing concerns over illegal resale practices and the belief that the system has fulfilled its purpose [2][3] - The current tax-free shopping system allows foreign tourists to avoid consumption tax, which has led to exploitation by some individuals for profit [2][3] Group 2: Economic Implications - The estimated tax-free sales for fiscal year 2024 are approximately 2.4 trillion yen, with a corresponding consumption tax exemption of about 240 billion yen [4] - If the tax-free system is abolished and foreign tourists maintain their spending levels, it is projected to generate an additional 240 billion yen in tax revenue [4] - A proposal to increase the departure tax from 1,000 yen to 5,000 yen could raise tax revenue from 4.9 billion yen to approximately 25 billion yen [4] Group 3: Political Context - The ruling party and opposition parties are proposing various measures to alleviate household burdens ahead of the upcoming summer elections, with tax increases on foreign tourists seen as a less controversial option [3][5] - The push to abolish the tax-free system has garnered support across party lines, indicating a growing consensus on the need for reform [3][5] Group 4: Tourist Sentiment and Market Impact - Concerns have been raised that these tax changes may deter foreign tourists, with some indicating that tax-free shopping is a significant factor in their spending decisions [5][6] - Despite potential impacts, some tourists express that they would continue to visit Japan regardless of tax changes, although there are mixed feelings about increased departure taxes [6][7] - The Japanese government aims to balance the need for increased revenue with the potential risk of reducing tourist numbers, which are crucial for the tourism-dependent economy [7][8]

Group 1 - The first downtown duty-free store in Fujian, operated by China Duty Free Group, has been upgraded to enhance shopping convenience for domestic and international tourists [2][3] - The new shopping model allows tourists to select products in the city and pick them up at the airport, with prices for international brand cosmetics being over 25% cheaper than in-store prices [2][3] - The initiative expands the duty-free policy from airport locations to urban core areas, targeting travelers departing within 60 days, thus allowing for a more relaxed shopping experience [2][3] Group 2 - The downtown store serves as a "pre-purchase experience center," while the airport store functions as an "immediate purchase service center," ensuring seamless integration of shopping experiences [3] - China Duty Free Group plans to introduce more initiatives in Xiamen, leveraging the downtown duty-free store to promote the integration of global buying and selling in core business districts [3] - The opening of the "cdf Guochao store" next to the downtown duty-free store allows both domestic and international travelers to purchase local trendy products with immediate pickup and tax refund services for eligible foreign travelers [3]

Core Insights - The Horgos International Border Cooperation Center has become a popular cross-border shopping destination during the May Day holiday, with an average daily foot traffic of 30,000 people, comparable to the Spring Festival travel rush [1] - The center has transformed from a border trade point into a bustling shopping hub, often referred to as "Little Dubai" by Central Asian merchants, showcasing a significant increase in international consumer activity [3] Cross-Border Shopping Experience - The duty-free shops are thriving, with products like Kazakh chocolates and French perfumes attracting many shoppers, who find prices 30% lower than those offered by purchasing agents [3] - The center features a diverse range of products, including kitchenware, with merchants adapting to the influx of Kazakh customers by adding Russian price tags [3] Cultural Exchange and Integration - The center showcases a blend of cultures, with visitors experiencing traditional Chinese medicine treatments at lower prices compared to Kazakhstan, and local artisans demonstrating traditional crafts [5] - The unique atmosphere is highlighted by the presence of various cultural elements, such as Kazakh and Uyghur dance performances during holiday parades, reflecting a rich cultural mix [8] Operational Insights - The center has implemented measures to manage the flow of visitors, including staggered entry plans to ease congestion during peak times [1] - Practical tips for visitors include optimal entry times and packaging requirements for larger purchases, enhancing the overall shopping experience [9] Future Developments - Plans for future upgrades include the potential introduction of facial recognition for customs clearance and the establishment of a Central Asian cuisine area [9] - The center's appeal lies not only in tax-free shopping but also in the unique experience of crossing a virtual border, as expressed by international visitors [9]