Hainan bets the farm on golf and yachting

By John Sexton
0 CommentsPrint E-mail china.org.cn, March 20, 2010
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Peter Dawson, chief executive of the Royal and Ancient Golf Club of St Andrews, golf's ruling body, addresses a forum on golf and tourism on March 18, 2010 in Haikou. [Chen Chao/china.org.cn]

Dawson called for "sustainable and accessible golf" - giving as an example a new community course built near St Andrews for just US$10 million, a sum that would scarcely cover the cost of a single reception room in Mission Hills' massive marble and glass clubhouse.

Other critics are more direct. Frequent visitors from the mainland were outraged when Hainan hotel prices were hiked by up to 600 percent during this year's Spring Festival. According to press reports, hotel bookings during the holiday period were 60 percent down from the previous year.

But the provincial government rejects criticism that it is building a playground for the rich. Chen Ci, mayor of Haikou, said the primary aim of developing tourism is to "assimilate the rural work force and boost domestic demand."

And officials insist their target market is not the super-rich but China's growing middle class of urban white-collar workers. They say that by 2016 China will have 100 million such households with enough disposable income to spend on leisure pursuits like yachting.

Sean Langdon of Pacific Allied Nautica says he is aiming at middle class customers with fiberglass speedboats that sell for around US$20,000. The company employs 50 skilled boat builders in Haikou and is expanding production facilities to Hainan's major resort, Sanya. It is exactly the kind of win-win investment officials hope will transform the island's economy.

But many locals remain unconvinced by the government's strategy. The main complaint is soaring house prices, up by around 50 percent over the past year. Residents blame the hype about the government's new tourism strategy. Officials admit it is a problem.

"It's a fact that property prices have risen too high in Hainan. The provincial authorities are working with city and county officials to improve our management of the property market. We have taken action, and you will see real changes by early May," said Tan Li.

And Tan says the government is determined to resist a return to Hainan's doubtful reputation. "Hainan will never follow Macao down the road of opening casinos," he said.

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