A view of the Haikou duty-free shopping complex in South China's Hainan Province on October 28, 2022. The complex, also the world's largest stand-alone duty-free shop with a total building area of 280,000 square meters, opens the same day. The complex features more than 800 brands. Photo: cnsphoto

Duty-free sales in South China's Hainan Province reached nearly 80 million yuan ($11 million) on Saturday, the first day under its new offshore duty-free policy, marking a 6.1 percent increase from the previous day. The strong performance reflects the policy's immediate stimulus effect, China Central Television (CCTV) reported on Sunday.

Figures from Haikou Customs showed that duty-free purchases totaled 78.55 million yuan on the first day of the new policy, with 12,700 shoppers snapping up 54,800 items, according to the report. Analysts said that the policy is set to deliver greater benefits to residents and tourists while further boosting the island's economy as its effects take deeper hold.

Residents and visitors in Hainan on Sunday spoke highly ofthe island's new duty-free policy, lauding the broader product selection and smoother shopping experience, the Global Times found.

French traveler Marie Dupont, who was preparing to depart from Haikou Meilan International Airport on Sunday, purchased Chinese-made cosmetics at the duty-free plaza.

"The prices really surprised me! Chinese brands' cosmetics and silk products are of excellent quality, and I ended up buying quite a few," Dupont said.

She told the Global Times that the creativity and value of Chinese brands were impressive, adding that her trip had been "not just a vacation, but a wonderful mix of culture and shopping."

China announced the updated policy in mid-October, allowing individuals aged 18 and above - whether local residents, Chinese mainland travelers, or international visitors - departing from Hainan to enjoy an annual duty-free quota of 100,000 yuan, with no cap on the number of transactions.

The revamped policy expands the duty-free catalog to include pet supplies, mini drones, small electronics, and six new categories of Chinese-made products - scarves, clothing, footwear, coffee, ceramics and tea - all exempt from tax.

Duty-free outlets across the island are bustling with new arrivals, with domestic brands increasingly taking center stage, China News Service reported. At the Haikou Riyue Plaza Duty-Free Shop, a dedicated section now features local products across six categories and 10 brands, with more to come, the report said, citing a salesperson. Some items are about 15 percent cheaper thanks to exemptions from value-added and consumption taxes, the report noted.

Industry analysts said that the new measures will make duty-free shopping more accessible, enrich product variety, streamline the purchasing process, enhance consumer satisfaction and inject fresh momentum into Hainan's free trade port.

"Broadening the duty-free lineup is a real win. Shoppers now have much more to choose from, and for us islanders, it means we can enjoy more affordable shopping right at home," Teresa Xu, who has lived and worked in Haikou for many years, told the Global Times on Sunday.

Xu said that the policy will further stimulate local consumption. "Friends from across the country and beyond should come to Hainan, it's not just about the beaches anymore. The shopping scene is world-class," she said.

While global luxury duty-free sales have seen a slowdown, Xu said that the surge of Chinese brands into the sector is not just about offering new products, but also giving homegrown labels a chance to shine on a larger stage.

Hainan's free trade port is scheduled to complete its full customs closure on December 18, paving the way for more streamlined and open policies. Once implemented, the number of zero-tariff goods will expand from about 1,900 to about 6,600 categories, covering roughly 74 percent of imports, according to Haikou Customs.

Additionally, customs authorities said in July that they will simplify exit procedures for goods leaving the island, cutting declaration items from 105 to 42.