Michael Straub, associate partner with McKinsey, said the upcoming major policy changes in the Hainan FTP will keep the island "a competitive travel and duty-free destination".

Meanwhile, exchanges in international energy, shipping, commodities and carbon trading have been established in the free trade port, which will be the largest in the world when construction is completed.

For a province that used to rely heavily on the real estate sector, Hainan has highlighted the implementation of the new development philosophy as the fundamental catalyst for growth, especially the promotion of a modern industrial system that focuses on the development of tourism, service, high-tech sectors and high-efficiency tropical agriculture, local officials said.

Feng Fei, governor of Hainan, said the province is making full preparations to launch island-wide customs clearance operations by 2025 as part of broader measures to promote trade and investment liberalization and facilitation, and to better integrate itself into the country's new development paradigm of domestic and international economic circulation, or "dual circulation".

Solid efforts have been made to promote the development of Hainan as a national ecological civilization pilot zone and ensure its unique environment is well-preserved.

Its air, water and soil quality remain excellent, while the annual average concentration of PM2.5 dropped to 13 micrograms per cubic meter last year, from 25 about 10 years ago, Feng said.