South China's island province of Hainan recorded total offshore duty-free sales of 28.93 billion yuan (about 4 billion U.S. dollars) in the first seven months of this year.

Tourists shop at a duty-free shopping complex in Haikou, south China's Hainan Province, July 12, 2023. (Xinhua/Yang Guanyu)

From January to July, nearly 4.2 million shoppers purchased over 34 million duty-free products on the island, according to the customs of Haikou, the capital of Hainan.

Since the beginning of this year, Hainan has introduced a raft of measures to boost the recovery of duty-free consumption. These efforts include issuing 20 million duty-free consumption coupons, holding an international duty-free shopping festival, and promoting the duty-free policy outside the province. The duty-free shops on the island have provided more than 30 promotions and launched discount promotions online and offline.

Since Hainan released the policy that allows domestic tourists to buy products on the island without taxation on April 20, 2011, rounds of adjustments to the initial policy have taken place.

The adjustments from July 1, 2020, increased the island's annual tax-free shopping quota from 30,000 yuan to 100,000 yuan per person and expanded the major categories of duty-free goods from 38 to 45.

China released a master plan in June 2020 to build Hainan into a globally influential and high-level free-trade port by the middle of the century. Over recent years, the island province has become an attractive shopping destination for domestic consumers.

Through years of efforts to enhance the local tourism and shopping sector, Hainan now boasts 12 offshore duty-free shops.