Hainan Offshore Duty-Free Sales Surpass 30 Billion Yuan in 2024

Hainan Customs has released its 2024 report on offshore duty-free shopping, revealing a decline in total sales, shopper numbers, and items purchased.

The total offshore duty-free sales for 2024 amounted to 30.94 billion yuan, down 29.3% from 43.76 billion yuan in 2023. Shopper numbers dropped by 15.9% year-on-year to 5.683 million, and the total number of items purchased fell to 33.082 million, compared to 51.3 million last year. During the New Year’s Day holiday on January 1, 2025, Haikou Customs recorded duty-free sales of 130 million yuan, slightly lower than the 140 million yuan recorded during the same period last year.

Several factors contributed to this fluctuation in 2024, including the resurgence of outbound travel, which shifted spending overseas, an unsure economic environment driving consumers to focus on cost-effectiveness, and the growing popularity of domestic brands.

To boost the duty-free shopping market, Hainan’s government and businesses implemented various promotional efforts. In December 2024, Haikou issued 26 million yuan in duty-free shopping vouchers, while Sanya allocated 74.5 million yuan to stimulate consumer spending. China Duty Free Group launched large-scale online and offline promotions, and during the New Year holiday, its Haikou International Duty-Free City offered activities such as raffles, trade-ins, discounts, and coupon rewards to attract shoppers.

While Hainan’s duty-free market has faced challenges, ongoing supportive policies and new convenience measures from Haikou Customs are gradually driving a recovery. In 2024, major luxury groups like LVMH and Kering expanded their presence in Hainan’s offshore duty-free market. Alongside the continued growth of LVMH’s DFS, numerous luxury brands opened stores on the island, banking on China’s booming duty-free market as a key opportunity.

Looking ahead, the launch of Hainan’s Free Trade Port operations in 2025 is expected to unlock significant new growth opportunities for the duty-free sector.