(Yicai Global) Jan. 15 -- The first international duty-free airport city, which will rise near Beijing Capital International Airport funded by investment of CNY12 billion (USD1.87 billion), is slated for 2020 completion. It will feature integrated businesses, including duty-free shops, leisure projects, starred hotels and high-end office buildings.
China International Travel Service Co. (CITS) [SHA:601888], Capital Airports Holding Co. (CAH) and the government of Beijing's northern Shunyi district signed the tripartite cooperative agreement, per which the new duty-free city that covers a ground floor area of 420,000 square meters is planned to link with the airport's light-rail shuttle station, Economic Daily reported yesterday.
A visa-free transit policy implemented in Beijing, Tianjin and Hebei since the end of last year that allows foreign visitors to in the region for six days will favor the duty-free city's development.
Estimates predict the tax-free town will register annual sales of CNY20 billion (USD3 billion), contribute to surrounding sectors and spur 50 billion in consumption. That figure may further scale to CNY100 billion to make it the world's largest airport business complex, per the report.
Beijing Capital International Airport saw an annual throughput of 94.4 million tourists in 2016.