Inside a duty-free shop in downtown Haikou, capital of South China's island province of Hainan, the mobile phone and tablet counter was crowded. He Jing swiped her card to buy an iPad after a price comparison.

"The duty-free price of this iPad is much cheaper," said He, a local citizen.

Starting July 1, Hainan has increased its annual tax-free shopping quota from 30,000 yuan ($4,261) to 100,000 yuan per person each year.

The categories of duty-free goods have also been expanded from 38 to 45, with some electronic products such as mobile phones and laptops added to the duty-free list.

The previous tax-free limit of 8,000 yuan for a single product has been lifted, and the number of categories with single-purchase quantity limit has been significantly reduced.

"I'm planning to stock up on skincare products and cosmetics," said Wu Ting, a tourist from central China's Hubei Province, picking her favorite cosmetics in the shop.

The new policy raised duty-free single purchase limit for cosmetics from 12 pieces to 30 pieces. "I no longer need to worry about the number of my purchases," she said.

Wu has traveled to the island several times, and duty-free shopping is a must-do for her. "Compared with other coastal cities in the country, duty-free shopping is definitely Hainan's advantage and its main attraction for tourists," she said.