China's Ministry of Finance gave approval to Hainan Province to increase the annual tax-free shopping quota for travelers this week. It's part of an effort to build the southern island into a free trade port, and help the tourism sector which has been severely affected by the Covid-19. Our Zhu Longzhou reports from Hainan.

Less tax to pay, more things to buy. Effective on July 1st, the tax-free shopping quota in Hainan will be raised to 100,000 yuan, or about 14,000 U.S. dollars, per person each year from the current 30,000 yuan.

TOURIST Hainan "This is my first time here. I didn't expect that the favorable policies could be implemented so quickly, I mean, in July. I can now purchase as many things as I want. I bought a watch, some skin care products, some lipsticks and makeup."

Moreover the categories of duty-free goods have also been expanded, with more electronic products added. Now shopping trips can be more comprehensive and efficient, boosting cashflow and the local travel industry after the hard times due to the pandemic.

TOURIST Hainan "I bought some watches and cosmetics. We could only buy 12 pieces in the past, but now, we can buy more products even 30 different items. It spares us from having to calculate precisely."

The duty-free shopping policy was implemented in April 2011 and has been improved and enlarged since then, with the sales of offshore duty-free shopping hitting 53.8 billion yuan and the number of buyers reaching 16.31 million by the end of 2019.

Meanwhile, from July, the policy adjustment is expected to enhance the shopping experience and increase confidence in the development of the Free Trade Port. In a nutshell, people now on the island can purchase high quality goods at lower prices, backed by regulations and proper supervision.

CHEN ZHEN Deputy Director of Haikou Customs "The whole process of supervision, including import, storage, sales and signing approval of delivery of duty-free goods, is carried out carefully. We also use scientific and technological means to achieve smart supervision."

Packed with money-saving policies and logistic safety nets, Hainan is embracing an increasing number of consumers and investors from home and abroad. The duty-free market will boost the island's economy and help it recover from the slowdown caused by COVID-19, which has long clouded the province and the entire nation.