Hainan, often referred to as "China's Hawaii" due to its tropical climate and beautiful beaches, has the potential to become a top tourist destination in Asia. However, it has been slow to reach that goal due to an economic downturn. After years of struggle, the tallest building in Hainan province, which was once abandoned, is now close to completion and serves as a symbol of the island's recovery efforts. Real estate sales in the area are picking up, signaling a positive turn for Hainan's tourism industry. Nearly all of the 16 million square meters of unfinished construction in Hainan following the economic crash has either been completed or demolished. Investors are now returning to the island, which is shifting towards a focus on becoming a top tourist destination to rival Thailand's beach resorts. Numerous luxury resorts are opening, and plans are in place to improve infrastructure, expand air links, and promote foreign language studies. Vice Governor Chen Cheng emphasized the importance of tourism in Hainan's development strategy. "It's very appealing," stated Ian Zheng, the Managing Director of the Pacific Alliance Asia Opportunity Fund, which has a $150 million investment in the company that owns Hainan's main airports and is also involved with a Beijing real estate firm operating in Hainan. "I do not anticipate any significant risks." If the island's beautiful coast does not immediately attract a large number of international beachgoers, the growing number of domestic tourists will likely support the industry. The vast Chinese market is a major attraction for the resorts, as they aim to capitalize on the millions of people who have benefited from the country's economic growth and are increasingly embracing Western lifestyles and aspirations. "Some estimates suggest there will be 450 million middle class Chinese in 10 years," noted Peter Pedersen, the general manager of Banyan Tree Sanya. "I believe Sanya has a great deal of potential." The recent opening of luxury resorts by major hotel operators in Sanya, including the Ritz-Carlton and Banyan Tree, shows a significant shift for Hainan, previously known for inexpensive package tours. Sanya is emerging as a top tropical destination in Asia, particularly as the only tropical island in China. Pedersen shared this perspective with Reuters. "It is increasingly popular in both the local and international tourism markets. It is an ideal location," he remarked while standing on the top of one of the resort's private pool villas, priced at around 5,000 yuan per night. Hainan, once a test-tube for development after becoming China's youngest and most economically liberal province in 1988, saw its economy grow rapidly to the point where enthusiastic officials even attempted to sell the city's main park to developers. While other coastal provinces flourished, Hainan struggled. Now, Hainan appears to be regaining stability, but analysts and investors caution that existing imbalances and conflicts could disrupt the island's recovery. In Haikou, the capital city, about 60 percent of newly built apartments are being purchased as second homes by non-locals, which Mayor Xu Tangxian admits is a problem. Xu mentioned in an interview that there are areas where all the homes have been sold, but remain unoccupied at night. Even though the majority of tourists in Hainan are from mainland China, with only 750,000 overseas visitors compared to 18 million last year, the government is striving to attract wealthy foreigners to enhance the island's reputation and economy. The provincial tourism bureau chief, Zhang Qi, stated last month that the goal is to bring in 20 well-known international hotel management groups within five years, and increase the number of five-star, internationally recognized resorts to 60 or more. With developers eagerly eyeing the tourism growth, reports of typical scandals are starting to surface. In Longqiao, a rural township near Haikou, the red earth is being plowed to create golf fairways. Local residents claim that officials persuaded them to sell their land for the development of a golf course. Tensions rose in April when rumors spread that the government had sold the land to the developer for a much higher price than what the locals received, leading to an angry mob overturning a police car. Subsequently, police reportedly used tear gas to disperse a crowd that had gathered in a nearby schoolyard. In the city of Sanya in southern China, there are concerns about bottlenecks and corruption causing delays and difficulties for investors. One Western investor mentioned facing significant challenges due to high levels of corruption. Despite these obstacles, there is still strong optimism about the potential for tourism in Hainan. The issues in Sanya are seen as just the beginning of a much larger problem. According to Pedersen from Banyan Tree Sanya, the island of Hainan remains quite large, with beaches stretching almost all the way to the capital Haikou. The island has a diameter of 350 km, and the possibilities are endless.