In 2012-2019, the CAGR of Hainan Island tax-free market was 29%, 11 ppts higher than that of domestic tax-free market. In June, the State Council issued the “overall plan for the construction of Hainan free trade port”, which released the tax-free quota for outlying islands from 30000 yuan to 100000 yuan, with unlimited purchase times, making it the most relaxed tax-free policy for outlying islands in Asia. Thanks to the favorable policies, Hainan duty-free shops have become an important consumption backflow point, which has benefited the first time. In June, Hainan’s passenger flow recovered faster than China’s aviation department’s domestic line monthly new policy. After the implementation of the new monthly policy, Hainan’s shopping passengers were 281000, with yoy + 42.7%; the tax-free sales volume was about 2.5 billion yuan, yoy + 240%; the passenger unit price was as high as 7897 yuan, yoy + 134%, of which the passenger unit price from July 14 to 27 was 11646 yuan, with a month on month ratio of + 164.8%. We forecast that the tax-free scale of Hainan Islands in 2020-2022 will be 487 / 848 / 95.8 billion yuan, and yoy + 257.8% / 74.3% / 12.9%. < / P > < p > the second phase project will be put into operation at the end of the year, which will undertake the increase of Hainan tourists in the next five years and meet the increasing demand of high-speed. The second phase of the airport is expected to be put into operation at the end of the year. After completion, the total capacity is expected to reach 45 million by 2025, including 10 million international tourists, which will undertake the increase of tourists from Hainan in the next five years. The area of duty-free shops in the airport is expected to increase to about 24000 M2, which will become the largest airport free business zone in China. Under the background of 88% growth potential of Meilan passenger flow and 71% increase of duty-free shop area, the shopping rate and unit price of tourists are expected to increase significantly. It is predicted that the tax-free sales of Meilan from 2020 to 2022 will be 39.75/89.10/11.760 billion yuan, and yoy + 71.9% / 124.2% / 32.0%. < / P > < p > the company has benefited from the construction of Hainan free trade port for a long time. With the introduction of a series of favorable policies such as air transportation and tax preference for Hainan pilot opening up the seventh navigation right, the company is expected to benefit directly in the long term. According to IDC forecast, the CAGR of Hainan’s overall economy from 2019 to 2045 will reach 6%, 10% and 12% respectively under the conventional, high-speed and breakthrough growth modes. The growth of free trade port has just started. After 2025, it will usher in a period of rapid development, and the future of Meilan can be expected.