Hainan, known as "China's Hawaii," is on track to become a top tourist destination in Asia with its tropical climate and pristine beaches. The construction of the Haikou Master hotel and serviced apartments, previously stalled due to economic struggles, is now nearing completion and reflects the island's efforts to recover from a property bubble in the early 1990s. Agent Hong Weibin reported strong sales of luxury flats in the complex. Nearly all of the 16 million square meters of construction left unfinished after the economic crash has been either completed or demolished, leading to a resurgence of investors in Hainan. The previous unrestricted development approach has been replaced with a concentrated effort to transform the tropical island into a tourist destination comparable to Thailand's beach resorts. Numerous high-end resorts are now opening up, and plans are in place to expand the visa exemption program, establish duty-free shops, enhance infrastructure, construct airports, increase air connections, and promote foreign language education. Vice governor Chen Cheng emphasized tourism as the most distinctive, promising, and competitive industry in Hainan during the unveiling of a development strategy last month. "It is quite appealing," stated Ian Zheng, who is the Managing Director of the Pacific Alliance Asia Opportunity Fund. The fund holds a $150 million stake in the company that owns Hainan's main airports and also has investments in a Beijing property firm operating in Hainan. Zheng expressed confidence in the investment, stating, "I do not anticipate any significant risks." The potential for growth in the tourism industry on the island is high, with a growing number of domestic tourists and the vast Chinese market presenting opportunities for resorts. Peter Pedersen, general manager of Banyan Tree Sanya, mentioned the estimated 450 million middle-class Chinese expected in the next decade, highlighting the potential for growth in the industry. "I believe that Sanya has great potential." In the past month, both the Ritz-Carlton and the Banyan Tree, luxury branches of major hotel companies, have opened resorts in Sanya, home to the island's top beach resort. The Mandarin Oriental is also set to open later this year. This development signifies a significant transformation for Hainan, previously recognized in China primarily for inexpensive package tours. "Sanya is emerging as a new tropical destination in Asia, and it is the only tropical island in China," Pedersen stated to Reuters. "It is increasingly sought after by both the local and international tourist markets. It is a perfect location," he stated while standing on top of one of the resort's private pool villas, which are priced at around 5,000 yuan per night. Hainan, after becoming the country's youngest and most economically liberal province in 1988, experienced rapid development. However, officials went as far as attempting to sell the city's main park to developers in their excitement. While other coastal provinces prospered, Hainan struggled. Now, Hainan appears to be on the road to recovery, but analysts and investors caution that there may be imbalances and conflicts that could disrupt the island's resurgence. In Haikou, the capital city, about 60 percent of new apartments are being purchased as second homes by individuals not from Hainan, a situation that Mayor Xu Tangxian has acknowledged. Xu mentioned in an interview that there are areas where all the homes have been sold, but remain unoccupied at night. Although the majority of tourists in Hainan are Chinese mainlanders, with 18 million visitors last year compared to just 750,000 international tourists, the government is making efforts to attract wealthy foreigners to help enhance the island's reputation and economy. The provincial tourism bureau head, Zhang Qi, stated last month that the objective is to attract 20 renowned international hotel management companies 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 misconduct are starting to surface. In Longqiao, a rural township located approximately a 40-minute drive from Haikou, the red earth is being plowed in large swaths to create golfing fairways on the low hills. Local residents claim that government officials persuaded them to sell their land for the construction of a golf course. In early April, rumors spread that the government had sold the land to the developer for a significantly higher price than what the locals received, causing outrage among the community. This led to an angry mob overturning a police car. Subsequently, when a group gathered at a nearby schoolyard, witnesses reported that police used tear gas to disperse the crowd. Some individuals in the southern town of Sanya believe that bottlenecks and corruption issues are beginning to have negative effects. A Western investor mentioned that he was facing difficulties in starting a project due to excessive corruption. The permit approval process has been significantly delayed, causing frustration. However, despite these challenges, optimism about Hainan's potential for tourism remains strong. There is a belief that the issues seen in Sanya are just the beginning of larger problems. "The island of Hainan remains quite large. There are beaches stretching almost all the way to the capital Haikou. The island has a diameter of 350 km," stated Pedersen from Banyan Tree Sanya. "There are endless possibilities here."