Winners and Losers in the Tourism Consumption Upgrade: 
A Critical Assessment of Income Redistribution Dynamics in Hainan's Tourism Ecosystem

Lu Liu

doi:10.70711/frim.v4i8.10008

Winners and Losers in the Tourism Consumption Upgrade: A Critical Assessment of Income Redistribution Dynamics in Hainan's Tourism Ecosystem

Lu Liu

Abstract

In December 2025, Tourism Market Liberalization will close for customs and introduce duty-free relevant regulations. Despite
prosperity indicators, here are institutional factors that promote the consolidation of wealth by a few at the expense of the many. Three
redistribution channels emerge: price subsidies, market substitution and factor pressures. Duty-free operators gain large margins, tourists
save 11-21%, SMEs benefit from arbitrage, yet local retailers face substitution and low-income households bear rising costs without income gains.

Keywords

Duty-free relevant regulations; Income redistribution; Tourism Market Liberalization; Tourism ecosystem; Stakeholder inequality

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DOI: http://dx.doi.org/10.70711/frim.v4i8.10008

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