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Hainan's grand plans for tourist paradise

By Ding Qingfen (China Daily)
Updated: 2008-05-19 14:55

And by 2020, Hainan will top the list of "international island tourism destinations", and by then, the number of annual overseas tourists and industrial revenues will surpass 5 million and $3.5 billion, respectively.

But some experts paint a less rosy picture. They say except for the hospitality sector which is taking shape, Hainan's tourism industry is far from mature and characterized by underdeveloped scenic spots, low-quality service, dull and simple tourism tour packages, and a shabby shopping environment - especially compared to its better known Asian resort would-be rivals.

It is also why the tourism industry in Hainan is still weak and a small contributor to the regional economy.

In 2007, despite years of growth, the revenues from the industry account for 14 percent of Hainan's GDP.

But comparatively, Bali, whose land area and population respectively is less than 20 and 40 percent of Hainan's, attracted 1.5 million tourists and recorded revenues worth $2 billion, altogether a 50 percent contribution to its local GDP.

From zero to a national brand

Hainan was among the first five officially approved special economic zones.

It was approved in April 13, 1988, the same day when Hainan province was officially established. It is the largest of its kind by area, and has been given the most preferential policies by the central government.

But the region's economic development had been experiencing twists and turns led by the real estate market decline from the early 1990s, until 1996 when the local government woke up to the fact and decided to shift its focus on three major businesses - new industry, agriculture and tourism, by making better use of its regional advantages.

That marked the kick-off of its tourism industry, which - though small - has been growing rapidly. From 1988 to 2007, the province has hosted 1.43 billion visitors who in total have spent 121.3 billion yuan ($17.39 billion). In 2007 alone, it received 18.5 million visitors and generated revenues of 17.14 billion yuan, which is respectively 16 and 60 times greater than 1988.

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