Hainan's $71 Million Duty-Free Blitz Tests New Economic Model

A new customs policy across all of Hainan has sparked a major shopping surge. In just five days, the island's tourist city of Sanya recorded over 500 million yuan (US$71.25 million) in duty-free sales. The scheme, which started last week, allows visitors greater duty-free shopping access across the entire province. Early data suggests it is driving immediate consumer spending. However, analysts say the policy's real test is still to come. The key question is whether it can help Hainan build a more diverse economy. For years, the island province has relied heavily on real estate. The new duty-free regime is a central part of China's plan to turn Hainan into a major international free-trade port by 2025. Success will be measured not by short-term shopping spikes, but by attracting long-term investment and business beyond property and tourism.