White paper reveals Hainan's transformation into a global hub for retail tourism
China's island province of Hainan is quickly establishing itself as a key destination for both domestic and international consumption, propelled by flourishing tourism, innovative policies, and strong retail growth, as highlighted in a white...
TroibNews 
China's island province of Hainan is quickly establishing itself as a key destination for both domestic and international consumption, propelled by flourishing tourism, innovative policies, and strong retail growth, as highlighted in a white paper released during the 5th China International Consumer Products Expo, which concluded on Friday.
The "2025 Hainan Travel Retail White Paper" was collaboratively published by KPMG China and the Moodie Davitt Report at the 5th Global Consumption Innovation & Duty Free and Travel Retail Exchange Event. This event, part of the CICPE, gathered industry leaders, policymakers, and international brands to discuss prospects in retail tourism and the province's groundbreaking economic reforms.
The white paper pointed out that Hainan's tourism revenue has consistently increased in recent years, aided by a shift from traditional retail practices to new consumption models and the growth of duty-free shopping.
Starting in 2024, the island has implemented several measures aimed at enhancing its appeal to international visitors, positioning itself as a high-quality tourism market on the global stage.
A significant finding from the white paper is the prevalence of younger consumers in Hainan's retail tourism sector, with travelers born in the 1990s and 2000s making up more than 50 percent of the island's tourists in the first three quarters of 2024.
These tech-savvy and trend-conscious shoppers seek diverse purchasing experiences, driving demand for cosmetics, skincare products, luxury items, and electronics.
"The preferences and purchasing power of young consumers are redefining Hainan's retail landscape," noted the report.
The province's focus on new tourism initiatives has helped attract this demographic, providing retailers with a blueprint for future growth.
On the governmental front, Hainan is utilizing institutional innovations to improve its business environment and promote fair competition within the free trade port framework. On the market side, the island is enhancing its international visibility by capitalizing on China's accelerated opening of the tourism sector and the expansion of the global travel market.
The white paper highlighted Hainan's dual function in drawing high-spending domestic tourists and encouraging overseas consumption, cementing its position as a global hub for tourism and retail.
"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 country's only state-level event focused on consumer goods, the 5th CICPE attracted over 1,700 enterprises and 4,100 brands from more than 70 countries and regions.
In 2024, Hainan experienced a record-high 97.21 million tourist visits, an 8 percent increase from the previous year. Total tourism revenue surpassed 204 billion yuan, reflecting a 12.5 percent rise, with per capita spending also showing significant growth. The island saw 1.11 million inbound tourists during the same time frame, skyrocketing by 115.6 percent year on year.
Navid Kalantari contributed to this article for TROIB News
The "2025 Hainan Travel Retail White Paper" was collaboratively published by KPMG China and the Moodie Davitt Report at the 5th Global Consumption Innovation & Duty Free and Travel Retail Exchange Event. This event, part of the CICPE, gathered industry leaders, policymakers, and international brands to discuss prospects in retail tourism and the province's groundbreaking economic reforms.
The white paper pointed out that Hainan's tourism revenue has consistently increased in recent years, aided by a shift from traditional retail practices to new consumption models and the growth of duty-free shopping.
Starting in 2024, the island has implemented several measures aimed at enhancing its appeal to international visitors, positioning itself as a high-quality tourism market on the global stage.
A significant finding from the white paper is the prevalence of younger consumers in Hainan's retail tourism sector, with travelers born in the 1990s and 2000s making up more than 50 percent of the island's tourists in the first three quarters of 2024.
These tech-savvy and trend-conscious shoppers seek diverse purchasing experiences, driving demand for cosmetics, skincare products, luxury items, and electronics.
"The preferences and purchasing power of young consumers are redefining Hainan's retail landscape," noted the report.
The province's focus on new tourism initiatives has helped attract this demographic, providing retailers with a blueprint for future growth.
On the governmental front, Hainan is utilizing institutional innovations to improve its business environment and promote fair competition within the free trade port framework. On the market side, the island is enhancing its international visibility by capitalizing on China's accelerated opening of the tourism sector and the expansion of the global travel market.
The white paper highlighted Hainan's dual function in drawing high-spending domestic tourists and encouraging overseas consumption, cementing its position as a global hub for tourism and retail.
"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 country's only state-level event focused on consumer goods, the 5th CICPE attracted over 1,700 enterprises and 4,100 brands from more than 70 countries and regions.
In 2024, Hainan experienced a record-high 97.21 million tourist visits, an 8 percent increase from the previous year. Total tourism revenue surpassed 204 billion yuan, reflecting a 12.5 percent rise, with per capita spending also showing significant growth. The island saw 1.11 million inbound tourists during the same time frame, skyrocketing by 115.6 percent year on year.
Navid Kalantari contributed to this article for TROIB News
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