China’s island province of Hainan is rapidly transforming into a global retail tourism hotspot, driven by booming tourism, innovative policies, and robust retail growth, according to a recent white paper.
The “2025 Hainan Travel Retail White Paper,” jointly released by KPMG China and the Moodie Davitt Report during the 5th China International Consumer Products Expo (CICPE), highlights Hainan’s steady rise as a premier destination for both domestic and international shoppers.
Hainan’s tourism revenue has seen consistent growth in recent years, propelled by a shift from traditional retail to new consumption models and the expansion of duty-free shopping. Since early 2024, the province has implemented measures to enhance its appeal to international visitors, positioning itself as a high-quality tourism market on the global stage.
One key insight from the white paper is the significant influence of younger consumers in Hainan’s retail tourism sector. Travelers born in the 1990s and 2000s accounted for over 50% of Hainan’s tourists in the first three quarters of 2024. These tech-savvy, trend-conscious individuals prioritize diverse shopping experiences, fueling demand for cosmetics, skincare products, luxury goods, and electronics.
“The preferences and purchasing power of young consumers are redefining Hainan’s retail landscape,” the report noted.
At the governmental level, Hainan is leveraging institutional innovations to enhance its business environment and promote fair competition within the free trade port framework. The province is advancing its international profile by capitalizing on China’s accelerated opening-up of the tourism industry and the expansion of the global travel market.
The white paper emphasized Hainan’s dual role in attracting domestic high-spending tourists and boosting overseas consumption, solidifying its status as a global tourism and retail nexus. “Going forward, Hainan’s travel retail market is poised for development and is expected to become an important global hub for travel retail,” the report said.
As China’s first major international exhibition of the year and the nation’s sole state-level event dedicated to consumer goods, the 5th CICPE attracted over 1,700 enterprises and 4,100 brands from more than 70 countries and regions.
In 2024, Hainan received a record-high 97.21 million tourist visits, an 8% increase year on year. Total tourism revenue exceeded 204 billion yuan (approximately $28.3 billion), rising by 12.5%, with per capita spending showing notable growth. The island welcomed 1.11 million inbound tourists over the same period, surging by 115.6% year on year.
