China’s Hainan Free Trade Port is drawing global investors as surging duty-free sales fuel economic growth, cementing its role as a hub for international brands, capital and tourism, said market watchers and foreign business leaders.
Their remarks came as sales under Hainan FTP’s offshore duty-free scheme rose 25.7 percent year-on-year to 14.21 billion yuan ($2.06 billion) in the first quarter of 2026, following the full implementation of island-wide special customs operations in mid-December, statistics from Haikou Customs showed.
In the meantime, skincare products, electronics, alcoholic beverages and apparel were among the best-selling duty-free categories.
Analysts said that the strong first-quarter growth in duty-free sales has laid a solid foundation for consumption growth in Hainan FTP this year.
“The growing duty-free figures have brought encouraging changes to the FTP and boosted confidence in its efforts to build itself into an international tourism and consumption center,” said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.
While part of the growth was supported by the Spring Festival holiday and seasonal factors, Zhou said the overall trend in the FTP will remain positive in 2026.
The trend is also reflected in broader consumption data in China, with retail sales of consumer goods totaling 8.61 trillion yuan in the first two months, up 2.8 percent on a yearly basis, according to the National Bureau of Statistics.
Jack Perry, chairman of The 48 Group Club, a London-based nonprofit organization dedicated to promoting Sino-British business cooperation, said that Hainan FTP’s combination of policy support, consumption upgrading and supply chain integration is creating new opportunities for global brands, while reinforcing China’s role as a key engine of global demand and growth.
Holger Bingmann, an executive board member of the Paris-headquartered International Chamber of Commerce, shared a similar view, saying that favorable policies have brought clear benefits to businesses since the launch of island-wide special customs operations in Hainan FTP. “For multinational companies, partnering with China’s strong capacity for innovation offers meaningful upside in this area,” said Bingmann, stressing that in an era marked by uncertainty, openness is a source of strategic strength.
This momentum has also lifted inbound tourism. Hainan recorded nearly half a million inbound tourist visits between January and March, a year-on-year increase of over 53.1 percent, according to Hainan’s provincial department of tourism, culture, radio, television and sports.
Notably, while traditional source markets such as Southeast Asia and Russia continued to grow steadily, arrivals from Europe surged. Visitor numbers from the United Kingdom rose by over 81 percent, Italy by 101.3 percent, Switzerland by nearly 99 percent, and Spain by more than 84 percent, year-on-year, respectively.
Already operating a travel retail headquarters in the Hainan FTP, Tapestry Inc, a United States-based fashion group, is well placed to tap into expanding demand in the port’s duty-free and travel retail markets.
“We see Hainan as a strategic gateway to connect with global visitors, China’s younger consumers and the expanding middle-income group, leveraging duty-free policies and integrated retail channels to deliver locally tailored products, enhance customer experience and deepen our presence in Hainan’s evolving consumption landscape,” said Joanne Crevoiserat, Tapestry’s CEO. Also upbeat about the growth potential of Hainan FTP, Stephane Maquaire, president and CEO of Club Med, a Paris-based travel and lifestyle brand, said the company will further expand its customer base and product innovation in China, integrating more local cultural elements. “We will further strengthen our position in sun-and-beach offerings with new projects in Sanya, Hainan province,” he said, adding that supportive policies at the free trade port and rising tourism demand have strengthened the group’s confidence in expanding its presence and innovating its resort offerings in China.
Contact the writers at zhongnan@chinadaily.com.cn