(Yicai Global) April 12 -- China's southernmost island province of Hainan should improve its duty-free policies to attract more tourists amid rising rivalry with Southeast Asian nations after borders opened following the Covid-19 pandemic, according to experts.

Hainan should make use of the Hainan Free Trade Port policy to enhance its services of tourism, shopping, and business to give clients more options, Eric Huang, auditing partner at accounting firm Ernst & Young Hua Ming, said to Yicai Global.

The natural scenery of the tropical island remains somewhat attractive to many travelers, Huang said, adding that even though the post-Covid lifting of entry and exit restrictions has enabled domestic tourists to choose overseas destinations it has also opened access for foreigners to visit Hainan.

Another expert agreed. The travel policy adjustment has been mutually complementary instead of creating rivalry as people can now make trips to Hainan, Cao Ruijie, vice president of Global Consumer Boutique Hainan Trading, said to Yicai Global. Hainan should still strive to strengthen brands' and consumers' awareness and trust in offshore duty-free shopping and enhance service capabilities, Cao added.

Tourism is not fully over Covid yet. The number of tourists that come to Hainan may recover to pre-pandemic levels, according to Pan Mingming, assistant general manager of Zhuhai Duty Free Group.

Hainan is still expected to boast very huge market potential by 2025 as the two local airports, Haikou Meilan International Airport and Sanya Phoenix International Airport, are expanded, Pan added. The island's duty-free market will expand greatly as offshore duty-free and outbound travel policies are adjusted, Pan said, adding that orderly cooperation and competition will facilitate growth.

In the first quarter, Hainan province welcomed 26.8 million tourists, up by 20 percent from a year ago, based on official data. Tourism revenue surged by 25 percent to about CNY53 billion (USD7.7 billion). In the first two months of this year, including the Spring Festival, offshore duty-free shops’ total sales tallied around CNY14.8 billion (USD2.2 billion), up by 15 percent.

Editors: Zhang Yushuo, Emmi Laine, Xiao Yi