Haikou started late in the yachting business but the industry’s rapid growth could be a turning point in the development of tourism on Hainan island according to local officials.

Haikou lies in a beautiful tropical setting in Hainan, and its windy but calm waters are ideal for yachting, making the city uniquely placed to develop as China’s major yachting center.

Chen Ci, Party Secretary of the Haikou Municipal Committee, said Hainan had been recognized by the State Council as the leading edge of China’s yacht economy. He said the city will establish a steering group in March to develop national standards for the construction of yachts and marinas.

The city is extremely yacht-friendly with simple formalities and customs clearance procedures, Chen Ci said, adding that it is an ideal location for buying and selling yachts: “Haikou’s yacht economy is currently based on yacht trading but in the near future we will be producing yachts in Haikou”, Chen Ci said. “And we will be offering tax incentives for the industry.”

600 yachting berths are to be built in Haikou, of which 400 will be completed by the end of 2010. There will also be a yacht sales and exhibition center, a yacht club, dry docks for yacht repair and maintenance, and a ship-to-shore command center.