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As of January 1, China became the fourth country worldwide to offer duty free shopping to its foreign tourists by declaring its tropical Island province, Hainan, a duty free zone. In a few weeks the island will pilot a policy enabling domestic tourists the same privileges, marking a huge step in the island's progress.

The duty-free policy is part of the Chinese government's plan to boost Hainan's reputation over the next few years with the aim of making it one of the top international tourist destinations by 2020.

The policy applies to all tourists leaving by air who spend over CYN5, 000 (AUD$739) on imported goods including perfumes, electronics, watches, fashion and leather goods.

The policy was passed on March 24 by the Minister of Finance and the General Administration of Customs in China.

China Duty Free Group (CDFG) is set to benefit from the boost of tourism this change in regulations is sure to create. 'Establishing the Sanya Duty Free store not only effectively fills the gap in Hainan's top-grade tourist shopping market but also promotes Hainan's tourism infrastructure, gearing it to gain international recognition,' said CDFG President Lu Lu.

The policy will be focused in Hainan's Sanya City, where foreign and domestic tourists will experience 'a first class shopping environment, rich commodities and brands, preferential duty free prices and superb customer service.'

'Sanya duty Free store intends to become the most attractive high-end shopping mall in Sanya and Hainan,' said Lu, describing the store as the best shopping environment in Mainland China and Hainan.