The popular Chinese holiday destination of Sanya is set to boast the world's largest duty free complex, according to reports.

Sanya, on the island of Hainan in the South China Sea, is the southernmost city in China and a booming holiday destination for Chinese tourists, boasting an ever-growing number of resorts aimed at both Chinese and international tourists.

Now, it will also be home to the world's largest duty free offering, some 350,000 square meters of duty-free retail space, says a report in industry publication the Moodie Report.

Situated in Haitang Bay, Hainan International Duty Free City will feature a massive retail complex, a luxury brand exhibition area, a designer hotel and a major food and beverage area, according to the publication.

The plans were unveiled by the China Duty Free Group at a May 16 industry event in Singapore.

This year, Hainan province became a duty free area for both domestic and international tourists, a bid to make it more competitive with neighboring Hong Kong.

However, its shopping facilities seemingly haven't kept up pace, with domestic media outlets claiming thousands of tourists swamped a new duty free store on the island when it opened earlier this month.

Phase one of the two-stage project will be open in two to three years, according to the Moodie Report.

Read more: