Hainan's duty-free sales soar on tourism boom

Hainan Free Trade Port's duty-free sales soared in the first two months, driven by a bustling tourism season and recent policy expansions that underscore its accelerating evolution into a global tourism and consumption hub, experts said.

Offshore duty-free purchases from January through February reached 10.59 billion yuan ($1.54 billion), a 25.9 percent increase year-on-year. The number of shoppers grew 16.6 percent to 1.28 million, while the volume of items sold rose 9.9 percent to 8.01 million units, according to Haikou Customs.

The surge follows the official launch of island-wide customs operations in the FTP on Dec 18, with officials saying the sales boom reflects the success of a series of moves to promote the FTP's opening-up.

For example, several adjustments to the offshore duty-free policy that took effect on Nov 1 have been widely seen as critical. Apart from an expansion of eligible duty-free product categories — from 45 to 47 — an adjusted offshore duty-free policy facilitated shopping for locals, as the new measures bring greater convenience to eligible Hainan island residents by significantly relaxing purchase restrictions on a variety of "instant purchase and instant pickup" duty-free goods.

Duty-free retailers are ramping up efforts to cash in on the opportunities brought by the consumption uptrend. Haikou International Duty Free City, operated by China Duty Free Group, has launched 17 new outlets since Jan 17. Haikou Meilan Airport Duty Free Shop has completed a 3,722-square-meter upgrade so far, adding 27 new outlets.

"I can now buy more types of offshore duty-free goods. Things like pet supplies and musical instruments, which were not available before, can now be purchased, and the prices are very favorable," said Li Huan, a tourist from Beijing.

The growing appeal extends to international visitors. Alice Ivanov, a tourist from Russia, praised the wide selection of international brands at China Duty Free Group's Sanya International Duty-Free City.

The number of foreign tourists peaked during the Spring Festival holiday period, with visitors arriving from Russia, Malaysia, Singapore and Thailand. During the nine-day holiday in February, the province welcomed 12.32 million visitors, a 28.9 percent year-on-year increase, generating 18.37 billion yuan in tourism revenue.

The momentum is expected to continue with events like the sixth CDF Watch Carnival, running from March 14 to April 26. Featuring over 70 global brands and exclusive product launches, the event is part of a broader strategy to use first-store and exclusive-product offerings to attract high-end consumers.

According to the local tourism authority, total tourist arrivals in Hainan reached 106 million in 2025, a 9.1 percent increase on a yearly basis, with spending up 10.5 percent to 225.43 billion yuan. Inbound overnight visitors surged 35.2 percent to over 1.5 million.

Liu Kun, deputy general manager of China Tourism Group, said,"Duty-free shopping is one of Hainan's marvelous credentials, and a key pillar in building the island into an international tourism and consumption destination."