Shoppers browse cosmetics at a duty-free luxury store in Haikou, Hainan province. [Photo by Su Bikun/For China Daily]

Hainan is accelerating the development of an international tourism and consumption center by leveraging offshore duty-free shopping policies and innovating supervision models for imported goods.

Hainan currently hosts 12 offshore duty-free shops across the province, offering over 500,000 square meters of duty-free shopping space. In 2024, Hainan's offshore duty-free shops recorded 5.68 million visits, resulting in the purchase of 33.08 million items valued at 30.94 billion yuan ($4.31 billion).

Hainan has emerged as China's premier high-end shopping destination, transforming duty-free retail into a golden economic engine. Leveraging the country's vast domestic market, the island has become a powerful magnet for luxury spending.

Hainan is the fourth region in the world to implement an offshore duty-free policy. The Haikou International Duty-Free City complex, which opened in 2022, is the world's largest single duty-free outlet, cementing Hainan's status as a beacon of global travel retail.

Luxury brands and high-end boutiques have set up in Hainan for long-term strategic layout. LVMH's Moët & Chandon and Perfume & Cosmetics have inaugurated a travel retail supply chain center in the province. Estee Lauder Group and Tapestry Inc have opened regional headquarters in Hainan, all underscoring their commitment to expanding premium shopping landscape in the region.

High-end commercial complexes are also reshaping the island's retail scene. In June 2022, Haikou MixC City debuted as Hainan's first high-end commercial complex, posting 33.56 million yuan in first-day sales. In March 2023, the local government announced 28 key projects for the year, including the third phase of Sanya International Duty-Free City commercial area, Sanya Haitang Bay Super MixC City cultural and tourism complex, and Sanya Joy City urban complex.

Unique Policy Advantages

Hainan benefits from distinctive policy incentives that have fueled its booming duty-free market. The annual per-person duty-free purchase limit is set at 100,000 yuan, far exceeding other regions.

All outbound travelers aged 16 and above — anyone holding an air, rail, or ferry ticket departing Hainan — are eligible to shop in the offshore duty-free stores, greatly expanding the customer base.

The province's duty-free offerings span 45 product categories, including cosmetics, smartphones, and alcoholic products.

Since April 1, 2023, Hainan has added two new duty-free pick-up options — instant pickups and guaranteed pickups — bringing the total to five to better meet diverse consumer needs.

The local authorities have implemented a series of measures to improve the environment and diversify the brand offerings at duty-free shopping facilities. They aim to promote mid-to-high-end specialty consumption by expanding the market for international premium products. Additionally, initiatives are underway to integrate duty-free shopping into cultural and sports activities, exhibitions, aviation services, hotels, and scenic spots, thereby creating more innovative and appealing offerings for consumers.

Source: Hainan Provincial Bureau of International Economic Development