Hainan island’s duty-free market is rebounding after two sluggish years, with sales surging nearly 45% in January before reaching near-record 6.1 billion RMB ($894 million) in February, buoyed by Chinese New Year spending and Beijing’s expanded allowances and voucher programs. Hainan now accounts for more than 8% of global duty-free sales. Estée Lauder reported high single-digit growth in the province, and Shiseido has flagged an emerging recovery. Morgan Stanley projects duty-free sales rising up to 30% this year, while UBS forecasts shopper traffic increasing around 15%.

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