HAIKOU -- China's island province of Hainan plans to open three new offshore duty-free shops this year, authorities said at a Wednesday press conference.

To encourage moderate competition and meet the demands of tourists, Hainan will set up three new duty-free shops in the resort city of Sanya, taking into account the number of tourists, traffic and business infrastructure, said Chen Xi, director of the provincial department of commerce.

One of the new shops will be located at the airport, with two others in downtown Sanya. Bids will be invited for the operation of the shops.

The provincial government has recently approved two local enterprises to conduct offshore duty-free business.

Chen Xin said the move would help Hainan to gradually create diversified business activity and differentiated competition, and better meet the needs of tourists, adding that Hainan welcomes enterprises across the country to compete in the market.

Hainan currently has four offshore duty-free shops, with two in Haikou, one in Qionghai and one in Sanya.