Policy shift propels duty-free shopping in Hainan

Duty-free shopping in Hainan province has surged since a major policy overhaul in 2020, with sales hitting 195.8 billion yuan ($27.3 billion) over the past five years, customs data shows.

The boom follows the province's move to triple the annual duty-free shopping quota for travelers to 100,000 yuan and expand product categories to include electronics and luxury goods.

From July 2020 to June 2025, nearly 28.6 million shoppers purchased 240 million duty-free items on the island, marking increases of 123 percent and 289 percent, respectively, compared to the previous five-year period, according to Haikou Customs.

"Six years ago, I almost gave up buying a 50,000-yuan watch here because of 10,000 yuan in taxes," said a tourist surnamed Li from Hunan province. "Now, with the higher quota, I can buy everything I want in one trip."