Hainan duty-free sector hits US$34.5 billion in sales over 14 years

CHINA. Hainan’s offshore duty-free sector has generated total sales of CNY250.1 billion (US$34.5 billion) over the past 14 years, according to latest data from Haikou Customs.

The offshore duty-free shopping scheme was introduced on a pilot basis in September 2011 to boost tourism and domestic spending on the island (the province was permitted to run the scheme in April that year).

As reported by Hainan Daily (part of Hinews, The Moodie Davitt Report’s content partner) last week, the sector’s strong performance has been fuelled by high foot traffic on the island. Between April 2011 and 16 March 2025, the province’s duty-free sector attracted 45 million shoppers, who collectively purchased 318 million items.

Since the launch of Hainan island’s offshore duty-free policy, it has undergone nine adjustments, progressively expanding its scope and benefits.

The annual duty-free shopping allowance for departing passengers has increased from the initial CNY5,000 (US$690) to CNY100,000 (US$13,795).

The range of eligible duty-free products has grown from 18 to 45 categories, while the methods for collecting purchased goods have expanded from one (airport pick-up) to five.

The policy now covers departures by plane, train and ship, and extends to crew members, private jet passengers and domestic cruise travellers.

To enhance control of the sector, Haikou Customs has introduced a centralised document review model for duty-free goods, leveraging information systems to streamline operations. This approach has improved the efficiency of duty-free goods registration and inventory management, saving enterprises time and logistics costs while ensuring smooth operations during peak periods.

Hainan Tourism Duty Free Shopping Complex  (HTDF) Deputy General Manager He Cuiping said, “After customs implemented centralised document review, we can remotely submit inventory applications and electronic data through the customs-enterprise service platform, receiving feedback within minutes. The entire process is now paperless, saving us considerable time and manpower.”

To further improve the shopping experience, Haikou Customs has introduced four additional pickup options, including island return (for Hainan residents), mail delivery, guaranteed pickup and immediate pickup, beyond the original airport model.

Haikou Customs noted its plans to expand the duty-free business model that integrates downtown duty-free, departure tax refund and port duty-free options, reinforcing Hainan’s position as a leading duty-free shopping destination. Read More