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Hainan's tourism plan to get nod soon

(chinadaily.com.cn)
Updated: 2010-03-08 15:31

The plan to turn Hainan into an international tourist destination is likely to get approval from the country's top economic planner between late March and early April, the Beijing News reported Monday, citing Governor Luo Baoming.

The tourism development plan is set to be signed off when the suspension of commercial land leasing and the approval of new real estate projects comes to an end.

Luo said the blueprint, which was officially submitted to the National Reform and Development Commission on March 6 after soliciting public opinion, will provide guidelines for the southern province's endeavor to become an international tourist destination.

Luo said the province will pilot yuan settlements in cross-border trade as well as favorable policies to attract more investment. It is also planning to build Asia's only aviation theme park, Luo added.

When the development outline wins the nod from regulators, it would pave the way to start the large projects the province was planning to carry out, Luo noted, adding that the "two halts" aimed at preventing the property market from overheating would also be lifted then. Previously, Hainan had announced in mid-January that it would halt commercial land leasing and the approval of new real estate projects until the end of March.

After the Chinese government revealed its ambition to develop Hainan into a top international tourist destination last year, property sales as well as their prices in the coastal province skyrocketed from December to early February on explosive short-term demands and speculative investments, said Jiang Sixian, vice-governor of the province. But the situation has now stabilized, Jiang added

Luo said property prices in Hainan will mainly be decided by demand in the future.

Responding to worries about whether Hainan will become another Dubai, which has received a devastating blow from the property bubble bursting, Wei Liucheng, Hainan's Party secretary, said that Hainan was not Dubai and there were big differences between the two. He promised that the authorities will curb speculative investments in the property market and would not repeat the history of the real estate collapse in the province in the 1990s.

He also said the provincial government has made it a top priority to build more affordable and apartments for sale or rent to local low-income families, which is the most effective way to curb the soaring housing price.