Sales at 10 surveyed duty-free malls in Hainan, a tropical island in southern China, totalled 2.13 billion yuan (almost $335 million) during the seven-day holiday, up 151 percent year-on-year, according to official figures. The number of customers reached 301,800, up 138 percent.

Hainan received 5,411,300 tourists over the holiday, with a total tourism retail revenue reaching 7.53 billion yuan.

The increase in sales on the duty-free island has largely been driven by China’s pursuit of a “Zero Covid” policy, which has kept borders largely shut to the outside world, as well as domestic policies implemented over the past two years in particular to boost tax-free sales and expand consumer tax exemptions.

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How to Tap Luxury’s Hainan Opportunity

Even after China’s borders reopen to international travel, holiday-makers will continue flocking to the luxury resorts on this tropical island renowned for duty-free shopping and golden sand beaches.