Hainan, often referred to as "China's Hawaii," has the potential to become a top tourist destination in Asia due to its tropical climate and beautiful beaches. However, the island has struggled to reach that potential due to an economic downturn. Recently, construction on the tallest building in Hainan, the Haikou Master hotel and serviced apartments, has been completed after being left unfinished for years. This development symbolizes the island's efforts to recover from a property bubble in the early 1990s. Real estate agent Hong Weibin reported that sales in the complex are doing well. Nearly all of the 16 million square meters of construction left incomplete after the economic crash has either been finished or demolished, and investors are now returning to Hainan. The previous development model has been replaced with a strong focus on transforming the tropical island in southwest China into a tourist destination that can compete with Thailand's beach resorts. Numerous top resorts are opening, and plans are in place to expand visa exemptions, open duty-free shops, improve infrastructure, build airports, increase air connections, and promote foreign language education. Vice governor Chen Cheng recently announced a strategic plan for development, stating that tourism is the industry in Hainan with the most unique features, potential, and competitiveness. Ian Zheng, Managing Director of the Pacific Alliance Asia Opportunity Fund, expressed his enthusiasm for the investment in Hainan's main airports and a Beijing property firm operating in the region, stating that he sees no significant risks. The potential of attracting international beachgoers to the island's coast is uncertain, but the growing number of domestic tourists is expected to support the industry. Resorts are banking on the large Chinese market, as millions of people have benefited from the country's economic growth and are adopting Western lifestyles. The general manager of Banyan Tree Sanya, Peter Pedersen, mentioned estimates suggesting there could be 450 million middle class Chinese in 10 years. "I believe Sanya has great potential." The past month alone witnessed the opening of resorts by the Ritz-Carlton and Banyan Tree in Sanya, where the island's top beach resort is located. The Mandarin Oriental is set to open later this year, signaling a significant transformation for Hainan. Previously known in China primarily for inexpensive package tours, Hainan is now emerging as a notable tropical destination, with Sanya being one of the newest in Asia and the only tropical island in China, according to Pedersen's statement to Reuters. "There is a growing demand for both the local and international tourist markets. It is considered an ideal location," he stated while standing on the top of one of the resort's private pool villas, which are priced at around 5,000 yuan per night. Hainan, once a test-tube for development after becoming the country's youngest and economically freest province in 1988, saw a surge in economic activity that led to officials attempting to sell the city's main park to developers. While other coastal provinces prospered, Hainan struggled. Now, Hainan appears to be gaining stability, although analysts and investors caution that imbalances and conflicts could hinder the island's progress. In Haikou, the capital city, around 60 percent of new apartments are being purchased as second homes by non-locals, a situation that Mayor Xu Tangxian has acknowledged. Xu mentioned in an interview that there are some areas where all homes have been sold, but remain unoccupied at night. Although the majority of tourists in Hainan are Chinese nationals, with 18 million visitors last year compared to just 750,000 international tourists, the government is making efforts to attract wealthy foreigners in order to enhance the island's reputation and economy. The government aims to bring in 20 renowned international hotel management groups within five years, and increase the number of five-star, internationally recognized resorts to 60 or more, as stated by Zhang Qi, the head of the provincial tourism bureau. Despite developers being excited about the tourism growth, reports of unethical behavior are starting to surface. In the rural township of Longqiao, located approximately a 40-minute drive from Haikou, the red earth is being plowed in large sections across the low hills, resembling fairways for golf. Residents claim that government officials persuaded them to sell their land for the construction of a golf course. In early April, anger erupted among the locals when rumors spread that the government had sold the land to the golf course developer for ten times the amount the residents were compensated. This led to a violent outburst, with an enraged group overturning a police car. Subsequently, when a crowd assembled at a nearby schoolyard, witnesses reported that police resorted to firing tear gas. In the town of Sanya in the south, some believe that bottlenecks and corruption are becoming a problem. A Western investor mentioned difficulties in starting a project because of excessive corruption. The permit process has been delayed for months. However, despite these challenges, optimism about Hainan's tourism potential remains strong. The belief is that the issues seen in Sanya are just the beginning. The island of Hainan remains quite large, with beaches stretching nearly all the way to the capital, Haikou. Banyan Tree Sanya's Pedersen stated that the island is 350 km in diameter and that there are endless possibilities here.