CHINA. Sanya’s duty-free market, so critical to Hainan island’s wider travel retail sector, has enjoyed a robust start to 2026 with Q1 sales surging +28.2% year-on-year to RMB10.06 billion (US$1.46 billion), according to the Commerce Bureau of Sanya.
This marks the first time in three years that quarterly sales have surpassed the RMB10 billion mark.
In-store traffic and the number of purchasers rose +20.7% and +21.1%, respectively, with per-capita spending exceeding the provincial average.
Business was stimulated by the combined effect of consumption vouchers and in-store promotions. Since the start of 2026, the city has issued a total of RMB80 million (US$11.6 million) in duty-free vouchers, generating a heady RMB1.38 billion (US$200.4 million) in consumption.
Enhanced media outreach and sustained retail innovation were other key factors as Sanya continued to upgrade its duty-free market.
Policy benefits unleash duty-free vitality
The Commerce Bureau of Sanya said in the first three months of the year, Sanya leveraged and rolled out measures designed to ensure swift and effective delivery of the Hainan Free Trade Port’s policy advantages.
This fuelled strong momentum in both the offshore duty-free sector and the newly introduced ‘zero tariff’ consumption scheme for Hainan residents.
In related news, on 11 February the Zhuhai Duty Free Daily Consumer Goods Store officially opened at the Sanya Bay No.1 complex (operated by Zhuhai Duty Free Group), signalling the implementation of the Hainan Free Trade Port’s zero-tariff policy for imported goods for consumption by local residents.
The store is authorised to carry 118 of the 202 taxable item categories, focusing on essential consumer goods such as food, beverages, other daily necessities and baby products.
As a duty-free format tailored specifically for Hainan residents, the Bureau noted, it has quickly tapped into the consumption potential of the island’s population. Since opening, the store’s sales have surpassed RMB3.5 million (US$508,240), marking a solid initial showing for the policy.
Diverse events create a feast for consumers
To celebrate Chinese New Year, cdf Sanya International Duty-Free Complex launched its Year of the Horse mascot, as well as an array of experiences with rich cultural flair to enliven the festive atmosphere.
In addition, the 6th cdf Watch Festival kicked off at the complex on 14 March, bringing together top domestic and international watch brands to further unleash high-end consumption potential.
Meanwhile, the Hainan Tourism Duty Free Shopping Complex in downtown Sanya centred its efforts on a ‘cultural experience + diversified promotions’ model, organising immersive events designed to retain foot traffic and stimulate spending through cultural engagement and interactive offerings.
Over at the CNSC Sanya International Duty Free Plaza, popular categories such as cosmetics, luxury goods and liquor offered attractive discounts and reward programmes to spur consumer enthusiasm.
Dual-approach promotional strategy expands reach
By integrating policy interpretation, marketing campaigns and brand building, Sanya has established a dual-prong promotion model that covers both the destination of Sanya and the tourist source markets, the Bureau said.
This helps continuously expand the reach and influence of the city’s duty-free offerings, the agency added.
By coordinating diverse media resources to deliver high-frequency, multi-dimensional coverage of promotional events, the city saw growth in both footfall and sales in its duty-free malls.
Duty-free policy information was strategically placed at key arrival points, such as Sanya Phoenix International Airport, major city thoroughfares, and high-speed rail routes.
At the same time, promotional efforts were deployed in transport hubs of key source markets, including Beijing’s Capital and Daxing airports, as well as Shanghai’s Hongqiao and Pudong airports, to showcase Sanya’s consumption advantages and holiday appeal, effectively boosting travel intent and consumer enthusiasm.
“In the second quarter, Sanya will continue to focus on the theme of joyful consumption and quality living, rolling out innovative consumption scenarios and unlocking new consumer potential,” the Commerce Bureau of Sanya said.
“In the coming months, major events such as the 6th China International Consumer Products Expo and the 6th Asian Beach Games will take place in Sanya. The city will seize these great opportunities by deepening integration across culture, sports, tourism, commerce and exhibition, to enrich the supply of high-quality offerings.
“These efforts aim to deliver premium consumption experiences for residents and visitors alike, and sustain the momentum of a vibrant and influential duty-free market.” 🏝️
