A stronger Hainan economy is good news for Hong Kong and Macau

Sonny Lo says the two Chinese SARs should see the benefit of supporting the central government’s push to develop Hainan into a free-trade port and a thriving centre for tourism and leisure, which is likely to include gaming

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Hainan’s development may give Hong Kong and Macau some competition, but it will not constitute a threat to the two economies. Illustration: Craig Stephens

Published: 6:18pm, 17 Apr 2018Updated: 2:48pm, 12 Mar 2019

The Chinese government’s grand plan to open up Hainan is not only politically and economically significant for the province itself, but it will also to some extent affect Macau’s position as a casino and tourism hub in southern China in the coming decades.

The plan is ambitious. In a “guiding opinion” to “comprehensively deepen” Hainan’s reform and opening up, jointly released by the State Council and Communist Party’s Central Committee this month, the government recognises the island’s achievements as a special economic zone. It also sets a goal of turning Hainan into a free-trade port, with major elements of the system in place by 2020.

The plan calls on Hainan to position itself strategically as a transit point for the central government in Beijing to implement the “Belt and Road Initiative”, and to remake itself into not just an international tourist draw, but also a centre for sustainable ecological development.

The central government wants to position Hainan as a transit point for its ambitious “Belt and Road Initiative”. Photo: Xinhua

In addition, the directive encourages Hainan to develop its free-trade zone by liberalising some rules, such as by allowing hotels access to foreign TV channels, and improving its infrastructure.

Most importantly, the government proposes the development of beach and water sports, as well as horse racing, and to “explore the development of sports lottery and instant lottery on major international events”.