Hainan province is likely to implement a duty-free shopping policy on foreign goods at the beginning of next year, allowing tourists to avoid having to pay duties when they leave the island with their purchases, Shihua Financial Information reported Friday.

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The tax exemption policy is now waiting to be jointly signed by the ministries and departments in Beijing, according to Shanghai Securities News.

The provincial government is willing to introduce some overseas duty-free brands onto the island as well. However, whether the proposal will be realized depends on the central government's final decision, the report said.

At present, China Duty Free Group Co Ltd is the only company that operates a duty-free shopping business on the island.

China Jianyin Investment Securities estimates that in Sanya, the second most populous city on the island, the scale of the departure-duty-free shopping market will reach 2 billion to 3 billion yuan ($300 million -$451 million).