Hainan Province has become a hotspot for global tourism and shopping after launching a landmark duty-free policy under its Free Trade Port (FTP) initiative. The policy, introduced on Dec 18, has transformed the island into a leading destination for international shoppers and multinational brands.
On Sanya’s Dadonghai Beach, tourists from Russia and other countries enjoyed the winter sun and sea waves. At the same time, in Haikou, long lines formed outside an Apple store at a duty-free complex. Customers took advantage of government consumption vouchers and duty-free pricing, saving hundreds of dollars on products like the iPhone 17 Pro Max.
The special customs operations expanded Hainan’s zero-tariff coverage from 21 percent to 74 percent. The number of tariff-free items increased from approximately 1,900 product lines to nearly 6,600. Streamlined customs procedures have strengthened Hainan’s position as a low-cost, efficient trade hub.
Gao Ruifeng, head of Haikou customs, said the measures make the island a key gateway for global goods entering China. The policy has already shown strong results. On the first day, offshore duty-free sales reached 161 million yuan, with 24,800 shoppers purchasing 118,000 items. These numbers represent year-on-year growth of 61 percent, 53 percent, and 25.5 percent, respectively.
The Sanya International Duty Free Shopping Complex was at the center of this boom. The mall integrated duty-free shopping with culture and tourism, launched promotional campaigns, and created a VIP salon for international visitors. On Dec 18, foot traffic exceeded 36,000, an increase of over 60 percent, while sales revenue jumped by 85 percent compared to last year.
Tourists praised the shopping experience. Vika Karenina from Russia, visiting visa-free, highlighted the smooth process. She noted the convenience of diverse payment options and no need for tax refund paperwork, saying the experience was seamless and enjoyable.
Duty-free stores had prepared months in advance, increasing inventory and planning promotions to create a high-quality shopping experience for both domestic and international travelers. Sanya’s cumulative duty-free sales have exceeded 20 billion yuan since the beginning of the year, according to the municipal commerce bureau.
The policy has also drawn new international brands. On Dec 17, SUQQU, a high-end cosmetics brand, opened its first store in China’s duty-free market in Sanya, enhancing the selection of luxury goods available to visitors.
Travel platforms reported strong booking growth as well. For the upcoming New Year holiday, flights to Sanya rose 51 percent compared to last year, while Haikou saw a 19 percent increase in bookings.
Analysts say the Hainan FTP duty-free policy is creating a “Hainan model” for free trade zones, combining tourism, retail, and global commerce. By offering duty-free benefits, streamlined customs, and high-quality shopping experiences, the island is rapidly establishing itself as a global consumer and trade destination.
The combination of policy innovation, strategic marketing, and international brand participation has created a surge in both tourism and retail activity. Hainan’s Free Trade Port is now a leading example of how policy reforms can boost local economies while attracting international attention.
