China's Hainan records surging duty-free shopping

HAIKOU -- The southern Chinese island province of Hainan reported 49.5 billion yuan ($7.78 billion) of offshore duty-free shopping in 2021, up 80 percent year-on-year, with more than 70 million items bought by 6.72 million shoppers.

The per capita shopping amount registered in the offshore duty-free shops (DFS) of Hainan logged 7,368 yuan, an increase of 20.2 percent compared to 2020. Cosmetics, watches, and jewelry were among the top three best-sellers for the shops.

Notably, the island's number of DFS customers last year increased by approximately 50 percent year-on-year and the number of the items they bought soared by 107 percent, according to the customs.

Three more duty-free shops opened last year in Hainan, raising the total number to 10. These shops host more than 720 brands in a total shopping area of 220,000 square meters.

Since July 1, 2020, Hainan has raised its annual duty-free shopping quota from 30,000 yuan to 100,000 yuan per person. The duty-free purchase limit for cosmetics has been raised from 12 items to 30.

The province has also rolled out a range of policies such as flexible pick-up services to provide a better experience for customers.

China released a master plan in June 2020 to build the island province into a globally influential and high-level free trade port by the middle of the century. As international travel is made difficult due to the COVID-19 pandemic, Hainan has grown into an attractive shopping destination for domestic consumers.