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Hainan Province lies at the southernmost tip of China, facing Guangdong Province in the north across the Qiongzhou Strait; the Democratic Republic of Vietnam in the west across the Beibu Gulf (Gulf of Tonkin), and Taiwan Province in the east across the South China Sea. To the south and southeast it is bounded in the South China Sea by the Philippines, Brunei and Malaysia. Encompassing Hainan Island, Xisha Archipelago, Zhongsha Archipelago and Nansha Archipelago as well as their dependent waters, Hainan Province covers a land area of 35,000 square kilometers and a sea area of approximately 2 million square kilometers. Hainan Island is China's second largest island after Taiwan, with an area of 33,900 square kilometers (not including its satellite islets). Zengmu Shoal of Nansha Archipelago is the southernmost part of Chinese territory. The Chinese government said on Monday, Jan. 4, 2010 that it aims to build the southern island of Hainan into a top international tourism destination by 2020. The country also plans to develop its only tropical island province into a platform for international economic cooperation and cultural exchanges, according to a statement of the State Council, equivalent to the Cabinet, released on Gov.cn, the official web portal of the Chinese government. The island will also become a base of agricultural production and a base for developing resources and services in the South China Sea, said the statement. The government said it would maintain the healthy development of the island's property sector and encourage developers to build premium hotels and resorts. It also supports family-run hotels and property-rental services. Efforts should also go to the financial sector in the island by pushing forward the trial program of cross-border trade renminbi settlement and backing qualified tourism companies to get listed in the stock market. The plan also includes measures to promote modern tropical agriculture in Hainan, including tropical fruits, aquatic products and others, and expand its agricultural cooperation with Taiwan. The government will further extend its favorable visa-free policy to five other nations including Finland, Denmark, Norway, Ukraine and Kazakhstan from the previous 21 nations including the United States, Japan and Canada. The statement also said the government would boost the island's development by expanding oil and gas exploration, offering more duty free services, improving transportation networks, developing logistics, reducing pollution, building more information networks and infrastructure. The government plans to lift the value-added output of tourism in Hainan to more than 8 percent of its gross domestic product (GDP) by 2015 and more than 12 percent by 2020, the statement said. Figure of how much value-added output of tourism accounted for in the province's GDP in 2008 was not available. Hainan's preliminary GDP stood at 145.9 billion yuan ($21.36 billion) in 2008, up 9.8 percent year Hainan's tourism development has become a national strategy, enjoying policy, capital, and other support policies from the government. Industry insiders say it will offer more opportunities for overseas enterprises to tap the Chinese market. Hainan signed deals for projects worth CNY17 billion as part of the island’s continuing efforts to fashion itself as an international tourist destination. Dubbed China’s Hawaii for its tropical weather and clean air, the southern province has received extensive support from the central government to develop its tourism industry and become the base for China’s “culture industry”. The new projects, ranging from resorts, hotels and commercial property to clean energy and power stations, are in west Hainan, which is relatively less developed than its eastern part. A new airport, which will be the third on the island after Haikou Meilan International Airport and Sanya Phoenix International Airport, will be built in Danzhou. The CNY1 billion airport, which will break ground next year, is expected to drive more traffic and trade to the western side of the island, said Huo Juran, Deputy Director General of the Hainan Provincial Development and Reform Commission. The hotel arm of the HNA Group also reached an agreement to invest CNY1.1 billion to build a complex of five-star hotels, commercial buildings and a high-end residential project, with a total floor area of nearly 300,000 square meters. The project will be completed by 2013. Hainan also plans to revamp cruise terminals in Sanya and Haikou to receive 200,000-ton cruise ships, the largest cruise ship type at present. Cruise ships visiting Hainan usually operate regional routes from Vietnam or neighboring cities and the existing berths on the island can only dock ships up to 70,000 tons. The province is looking for expertise from Hong Kong on how to build up its cruise-terminal business. The number of yachts operating in Hainan is also rising, with more high net worth people visiting the island in winter, and buying property or yachts for accommodation. There are 477 yacht berths in Hainan, serving more than 100 yachts. Industry sources said the number of yachts in Hainan would increase to in three to five years. About the Author: Tom Lee With MBA degree focus on international business have more than 10 years China Business Consultant experience. Currently, he is China Sourcing Agent and Professional China Business consultant who help International SME establishing and expanding business in China He can provide comprehensive China sourcing services to customers of interested in China sourcing, China Purchasing, China manufacturing and try to find the best sourcing solution for you. Please visit http://www.tommyconsulting.com/index.html Tommy China Business Consulting Tel: 86-755-25809219 Fax: 86-755-83256658 Email:tomlee@tommyconsulting.com, tomlee_cn@163.com Msn: tomlee_cn@hotmail.com Skype:tomleeli
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