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For the economic development of Hainan Island, the Chinese government is improving the duty-free policy by building the Hainan Free Trade Port. Hainan has grown rapidly in recent years as the duty-free limit has increased. Also, items in Hainan have been greatly expanded, and more tourists are visiting Hainan.
This study performed PEST an alysis on the duty-free in dustry of Hain an .
Furthermore, examination in the political, economic, social and technological domains reveals that the Hainan duty-free industry has excellent institutional support and economic momentum, as well as an advantage in transportation and logistics, but the market management system is rather weak.
Although Hainan Island Then, the competitiveness and development strategy of Hainan Island were analyzed using SWOT analysis. Although Hainan Island has the advantages of abundant government support and high tourism demand, it also has disadvantages such as an underdeveloped service system, mismatch between supply and demand, weak risk management and control.
Based on the results of this research, Hainan Island needs to implement reality-based policy support, strengthen innovation, and improve risk management and duty-free shop management.
The study suggests implications for the competitiveness and development strategy of the duty-free industry in Hainan, and the duty-free industry in Korea.
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