The southern Chinese island province of Hainan reported 49.5 billion yuan (about 7.78 billion U.S. dollars) of offshore duty-free shopping in 2021, up 80 percent year on year, with more than 70 million items bought by 6.72 million shoppers.
The per capita shopping amount registered in the offshore duty-free shops (DFS) of Hainan logged 7,368 yuan, an increase of 20.2 percent compared to 2020. Cosmetics, watches, and jewelry were among the top three best-sellers for the shops.
Notably, the island's number of DFS customers last year increased by approximately 50 percent year on year and the number of the items they bought soared by 107 percent, according to the customs.
Three more duty-free shops opened last year in Hainan, raising the total number to 10. These shops host more than 720 brands in a total shopping area of 220,000 square meters.
Since July 1, 2020, Hainan has raised its annual tax-free shopping quota from 30,000 yuan to 100,000 yuan per person. The duty-free purchase limit for cosmetics has been raised from 12 items to 30.
The province has also rolled out a range of policies such as flexible pick-up services to provide a better experience for customers.
China released a master plan in June 2020 to build the island province into a globally influential and high-level free trade port by the middle of the century. As international travel is made difficult due to the COVID-19 pandemic, Hainan has grown into an attractive shopping destination for domestic consumers.