Emboldened Haikou in line for huge windfall from Beijing’s helping hand

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Tourism bureau steps up efforts to turn Haikou into regional travel destination

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Haikou has improved its tourism infrastructure and offerings over the past decade, and developed into a travel destination. The tourism bureau says it will step up promotional efforts overseas.

Keith Chan

Published: 6:22pm, 30 May 2018Updated: 6:22pm, 30 May 2018

This year is Hainan’s 30th anniversary, and a massive leap in the province’s development. Haikou, the capital city, is well placed to make the most of new opportunities.

In April, President Xi Jinping paid a three-day visit to Haikou after attending the Boao Forum. At a gathering celebrating the 30th anniversary of the founding of Hainan Province and the Hainan special economic zone, Xi announced the government’s decision to support the transformation of the whole Hainan Island into a pilot free-trade zone with Chinese characteristics. The government will promulgate policies and institutional systems to support the initiative, making Hainan the country’s largest free-trade zone and the first free-trade port to enjoy higher-level policies.

President Xi Jinping shakes hands with members of the public at a plaza near Hainan Museum in Haikou. Photo: Xinhua

Xi said the development of Hainan could no longer rely on intermediary trade and processing, and it should be driven by tourism, modern services and new and hi-tech industries. He invited foreign investors to invest in Hainan and develop the free-trade zone. Higher-level trade and investment liberalisation policies will be implemented and incentives will be offered to attract more international talent to work in Hainan.

The government will roll out increasingly flexible policies for the tourism industry to encourage more overseas investment and cooperation. After the establishment of the free-trade zone, visitors to Hainan will enjoy duty-free shopping in all cities, instead of at dedicated duty-free outlets, as is the case at present.

The initiative presents tremendous opportunities for growth for Haikou, especially for the tourism industry. In the past, many visitors used Haikou mainly as a transit point on the way to Sanya, taking advantage of cheaper airfares. However, unlike Sanya, which is mainly a leisure destination, Haikou is the city that appeals to business and leisure travellers. It is also the provincial centre for government and companies. With greater investment and business activities in Hainan, more visitors are likely to come to its capital.