Economy
[edit]
20122016A typical example of an urban development. The above images show the same place in Guilinyang roughly four and a half years apart.
Old town of Haikou, 2021
Hainan's economy is predominantly agricultural, and more than a half of the island's exports are agricultural products. Hainan's elevation to province-level status (1988), however, was accompanied by its designation as China's largest "special economic zone", the intent being to hasten the development of the island's plentiful resources. Prior to this, the province had a reputation for being a "Wild West" area, largely untouched by industrialization; even today there are relatively few factories in the province. Tourism plays an important part of Hainan's economy, thanks largely to its tropical beaches and lush forests. The central government has encouraged foreign investment in Hainan and has allowed the island to rely to a large extent on market forces.
Hainan's industrial development largely has been limited to the processing of its mineral and agricultural products, particularly rubber and iron ore. Since the 1950s, machinery, farm equipment, and textiles have been manufactured in the Haikou area for local consumption. A major constraint on industrial expansion has been an inadequate supply of electricity. Much of the island's generating capacity is hydroelectric, and it is subject to seasonal fluctuations in stream and river flows.
In December 2009, the government of China announced that it plans to establish Hainan as an "international tourist destination" by 2020. This announcement contributed to a surge in the province's economy, with a year-on-year increase in investment of 136.9% in the first three months of 2010. Hainan's real estate sector accounted for more than one third of the province's economic growth.
According to the Statistical Communiqué of National Economic and Social Development of the statistical authority, the GDP of Hainan Province in 2017 was 446.3 billion yuan (66.1 billion US dollars), up by 7.0 percent over the previous year. Of this total, the value added of the primary industry was 97.9 billion yuan (14.5 billion US dollars), up by 3.6 percent, that of the secondary industry was 99.7 billion yuan (14.8 billion US dollars), up by 2.7 percent and that of the tertiary industry was 248.6 billion yuan (36.8 billion US dollars), up by 10.2 percent. The value added of the primary industry accounted for 21.95 percent of the GDP; that of the secondary industry accounted for 22.34 percent; and that of the tertiary industry accounted for 55.71 percent. The per capita GDP in 2017 was 48,430 yuan (7,173 US dollars).
Agriculture[edit]
One of the many rice fields in Hainan
Owing to Hainan's tropical climate, paddy rice is cultivated extensively in the northeastern lowlands and in the southern mountain valleys. Leading crops other than rice include coconut, palm oil, sisal, tropical fruits (including pineapples, of which Hainan is China's leading producer), black pepper, coffee, tea, cashews, and sugarcane.
The hot Hainan yellow lantern chili, a variety similar to the scotch bonnet, is unique to the island, and is grown in the southeast and southwest.
The total tropical crop area of Hainan is 100,000 hectares.
Hainan is a major rubber producer. In the early 20th century Chinese emigrants returning from then British Malaya, introduced rubber trees to the island; after 1950, state farms were developed, and Hainan now produces a substantial amount of China's rubber. Natural rubber is now grown on 246,000 hectares of land. This ranks 6th in the world in harvest area and 5th in terms of output.
Hainan has almost 93,000 hectares of areca palms. The product, the areca nut, is consumed locally and also sent to the mainland. Ninety-five percent of China's production of this nut is produced in Hainan.
Domesticated farm animals comprise mainly goats, cows, water buffalo, chickens, geese and ducks.
Fisheries[edit]
Fish farms in Chengmai
Grouper, Spanish mackerel, and tuna[citation needed] constitute the bulk of the catch from offshore fishing grounds. Scallops and pearls are raised in shallow bays and basins for local use and export.
Shrimp production is estimated to have been 120,000 to 150,000 metric tons (130,000 to 170,000 short tons) in 2007, more than 50% of which was exported. Hainan has over 400 hatcheries, most being located between Wenchang and Qionghai.
Tilapia production in 2008 was 300,000 metric tons (330,000 short tons). The island has an estimated 100,000 local, commercial fish farming families.
Tourism[edit]
Located in Sanya, this beach is typical of those along the entire eastern coast of Hainan
Hainan Island is often divided into eight regions for tourism purposes: Haikou and area (Haikou, Qiongshan, Ding'an); the Northeast (Wenchang); the Central East Coast (Qionghai, Ding'an); the South East Coast; the South (Sanya); the West Coast also called the Chinese Riviera (Ledong, Dongfang, Xianghsui, Changjiang); the North West (Danzhou, Lingao, Chengmai); and the Central Highlands (Baisha, Qiongzhong, and Wuzhishan/Tongzha).
Popular tourist destinations include the beaches and resorts in the southern part of the province. Inland is Five Finger Mountain, a scenic area. Tourists also visit the capital of Haikou with area visitor attractions such as Movie Town Haikou and Holiday Beach.
Visa requirements[edit]
See also: Visa policy of China
In 2000, the province initiated a visa-upon-arrival policy for foreign tourist groups. It is available to citizens of twenty-six countries, and was established in order to attract visitors.
Beginning 1 May 2018, citizens of 59 countries will be able to visit Hainan for 30 days without requiring a visa, provided that they come on a tour via a travel agency. Countries included among the 59 are: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Indonesia, Ireland, Italy, Japan, Kazakhstan, Malaysia, Mexico, the Netherlands, New Zealand, Norway, the Philippines, Poland, Portugal, Russia, Singapore, Spain, South Korea, Sweden, Switzerland, Thailand, UAE, Ukraine, the United Kingdom, and the United States.
Statistics[edit]
During 2008, 20.6 million tourists visited Hainan, producing total revenues of 19.23 billion yuan (US$2.81 billion). Of these tourists, 979,800 were from overseas with the largest numbers coming from South Korea, Russia and Japan.
In 2010, the amount of overnight tourists visiting Hainan was 25.87 million, 663,000 of which came from outside China.
During 2011, more than 30 million tourists visited Hainan, mostly from mainland China. Of the 814,600 overseas tourists, 227,600 of them came from Russia, a 53.3 percent a rise year-on-year. Total revenue during that year was 32 billion RMB ($4.3 billion US), up 25 percent from 2010.
In the first quarter of 2012, the Hainan Provincial Tourism Development Commission reports that Hainan received 208,300 overnight visitors, 25 percent of whom came from Russia.
In 2014, Hainan received 50.2 million tourists, 660,000 of whom were from overseas.
During 2015, Hainan received 53 million visitors.
In 2016, over 60 million tourists went to Hainan, up 12.9% from 2015.
During 2018, the province received over 76 million domestic and overseas tourists, a year-on-year increase of 11.8%. Revenue also increased 14.5% compared to the previous year for a total of 95 billion RMB (US$14 billion).
Medical tourism[edit]
The government of Hainan is expanding the province's medical tourism industry. The provincial government has established the Boao Lecheng International Medical Tourism Pilot Zone in the Bo'ao area. The zone is located six kilometers from the Boao Forum for Asia and covers 20 square kilometers. This was announced at the Boao Forum for Asia in 2011. The State Council has approved the development of Lecheng Island as a medical tourism-themed destination. Lecheng Island is a small island in the Wanquan River about 3 km (1.9 mi) west of the coastal town of Bo'ao on the west coast of the province. Construction on the 20 km2. The zone was begun in December 2014 and will cost a projected 1.5 billion yuan. It was scheduled for completion in 2016 and is the first special zone for medical travel in China. As part of the zone, the Boao Super Hospital opened in 2018.
Historical sites[edit]
Main article: Major national historical and cultural sites (Hainan)
Haikou is the province's capital and contains interesting historic sites. Also known as Coconut City, Haikou is a major port. The Five Officials Temple (Chinese: 五公祠; pinyin: Wǔgōng cí, 20°0′35.79″N 110°21′17.34″E / 20.0099417°N 110.3548167°E / 20.0099417; 110.3548167) consists of five traditional temples and halls that were built in honor of five officials of the Tang (618–907) and Song (960–1279) dynasties. These officials were banished to Hainan for periods ranging from 11 days to 11 years for speaking out against what they felt were wrong practices by the emperors. (It is perhaps significant that the establishment of the Five Officials Temple in the late 19th century coincides with a time when China's territorial integrity was under threat, and that several of the officials honored here were exiled for espousing aggressive policies on the recapture of the north of China from the Jurchens during the Southern Song dynasty.)
Xiuying Fort was built in 1891 to defend the southeastern corner of China during the Sino-French War. The Xiuying Fort Barbette covers about a third of an acre. Its five large cannons are still intact and viewable at the site.
Tomb of Hai Rui
The Tomb of Hai Rui (20°0′29.66″N 110°17′30.18″E / 20.0082389°N 110.2917167°E / 20.0082389; 110.2917167) is a key national cultural protection site. Hai Rui was a compassionate and popular official of Hainanese origins who lived during the Ming dynasty. He was famous for his lifelong honesty and his willingness to speak out on behalf of local people. In later life, Hai Rui was persecuted and fell out of favor with the emperor. His admirers built the Hai Rui Tomb after his death to commemorate his great works. Construction of the tomb began in 1589.
The Yangpu Ancient Salt Field is a heritage site in Yantian village on Yangpu Peninsula. The area comprises more than 1,000 stones, cut flat on top, used to dry seawater to produce salt.
Other attractions and destinations[edit]
Yalong Bay, the most expensive and well-known beach in Hainan, and the location of numerous 5-star hotels.
Hainan Island has a number of beaches, hot springs and other attractions. Some top scenic sites include Yalong bay National Resort; Dadonghai Tourist Resort; Qizhi Shan (Seven Finger Mountain), Nuilin mountain tropical botanical reserve in Lingshui county, Guantang Hot Spring Resort, Shishan Volcanic Garden; the Wanquan River, Baishi Ridge Scenic Zone and Baihua Ridge.
Other attractions in Hainan include:
Phoenix Island, an artificial island in Sanya Bay.
Monkey Island, near the well-known perfume bay or Xiangshui Wan, a popular tourist destination located in Lingshui County, is a state-protected nature reserve for macaques.
Yalong Bay (Crescent Dragon Bay or Yalong Wan), a 7 km (4.3 mi) long beach east of Sanya City.
Xiangshui Bay Scenic Area, 48 km (30 mi) from Sanya Tiandu.
Luobi Cave, 15 km (9.3 mi) north of Sanya City.
Nanshan Temple, a Buddhist cultural area west of Sanya featuring a 108 meters (354 ft) statue of Guanyin, Buddhist Goddess of Mercy.
Yanoda is a rainforest area. It is open to visitors with guided walking tours, a zipline, and a waterfall climbing activity.
Atlantis Sanya - a luxury resort in Sanya
Yachting[edit]
To encourage the international yachting community, new regulations now allow foreign yachts to stay for a total of 183 days each year, with a maximum single stay duration of 30 days. 13 additional ports will be built around the island to accommodate this market.
Duty-free program[edit]
On 20 April 2011, a pilot duty-free program commenced with the aim of increasing luxury goods purchases. It permits domestic Chinese visitors to claim tax refunds on imported luxury items purchased within the province. The maximum value is set at 5,000 yuan (US$762), with lowered tax rates on purchases over 5,000 yuan. In October 2012, duty limits were raised to 8,000 yuan ($1,273), and became available to both domestic and international tourists.
The total sales of duty-free products for 2012 was 2.4 billion yuan.
The world's largest duty-free shopping complex is scheduled to open in Haitang Bay in August 2014.
During 2018 Spring Festival, Hainan recorded a 25% increase in duty-free revenue, with 450 million yuan ($71 million) in sales. The two duty-free shops, located in Sanya and Haikou, received about 99,000 customers, a 32% gain.
During 2018, the two duty-free shops had sales of more than 10 billion RMB and received 2.88 million customers.
Natural resources[edit]
Hainan has commercially exploitable reserves of more than 30 minerals. Iron, first mined by the Japanese during their occupation of the island in World War II, is the most important. Also important are titanium, manganese, tungsten, bauxite, molybdenum, cobalt, copper, gold, and silver. There are large deposits of lignite and oil shale on the island, and significant offshore finds of oil and natural gas have been discovered. Virgin forests in the interior mountains contain more than 20 commercially valuable species, including teak and sandalwood.
Real estate market[edit]
In 1990, Hainan province was the site of the largest property bust in modern Chinese history With 2009 and the announcement of the Chinese Government's plan to develop the province into a major international tourist location, property sales rose by 73%, creating the possibility of another bubble in Hainan's property market.
Since March 2010, commercial and residential property values in some parts of Hainan have slowed down since the market peaked in February.
In March, average month-on-month transaction prices dropped 12.82% to 12,280 RMB per square meter, with a reduction in volume to 627,000 square meters (6,750,000 sq ft), a 19.05% decline. Later in April, prices declined 2.84% to 11,932 yuan per square metre, with a 57.59% decline in volume to 567,200 square meters (6,105,000 sq ft). Then in May prices declined a further 29.74% from the previous month to 8,483 yuan per square metre, with a 57.95% decline in volume to 229,000 square meters (2,460,000 sq ft). However, property prices in the tourist resort of Sanya remain strong as of January 2011, with prime developments selling at prices of up to 80,000 RMB per square metre.
Data for 2016 data shows that Hainan saw an increase in house sales of 44%. Volume in sales was 129 billion RMB ($18.82 billion) which is a rise of 51.2 percent year-on-year. During that year in November, commercial apartments in Sanya sold for 20,695 RMB per square meter a rise of 15.75% year-on-year. The total amount of Sanya real estate sold during that time was 212,400 square meters.
Out of China's twenty leading real estate developers, eighteen had invested in Hainan during 2016.
In the beginning of 2017, the price for a house in Haikou was approximately 8,000 RMB ($1,170) per square meter and 20,000 RMB ($2,977) per square meter in Sanya.
New 2018 regulations[edit]
On 23 April 2018, new rules came into effect regarding home purchases in Hainan. To be able to buy a house, non-Hainan residents must prove that they have a minimum of one family member who has been paying taxes or social security for at least 2 years.
Those non-Hainan residents who wish to purchase a house in Haikou, Sanya and Qionghai must prove that they have a minimum of one family member who has been paying taxes or social security for at least 5 years.
In Wuzhishan, Baoting, Qiongzhong and Baisha (the "central ecological core areas"), houses may only be purchased by local residents.
When non-residents do buy a property, the down payment must be at least 70 per cent. In order to curb speculation, owners may not sell their property for five years after receiving their ownership certificate.
Golf industry[edit]
See also: Golf in China § Hainan
This industry is expanding in Hainan, with numerous courses being constructed, including Mission Hills Haikou, which is one of the largest golf complexes in the world. The golf industry attracts foreign investment and overseas golfers from such countries as Australia, South Korea, and Japan.
Automotive industry[edit]
Automotive manufacturing is one of eight industrial pillar industries. Hainan's automotive output was 39,600 in 2017, down by 41.1 percent over the previous year. Domestic Chinese manufacturer, Haima Automobile has its global headquarters in Haikou.
Foreign trade[edit]
As of 2017, the total value of imports and exports of goods reached 70,237 million yuan (10,403 million US dollars). Of which, the value of goods exported was 29,566 million yuan (4,379 million US dollars), the value of goods imported was 40,671 million yuan (6,024 million US dollars).
Asean was Hainan's largest export trade partner in 2017, the value of goods exported to Asean was 12,289 yuan (1,820 million US dollars), accounted for 41.56 per cent of the total value of goods exported. Its second-largest foreign trade partner was Hong Kong, the value of goods exported to Hong Kong was 2,966 yuan (439 million US dollars), accounted for 10.03 per cent of that. the 3rd largest partner was EU, the value of goods exported to EU was 2,186 yuan (324 million US dollars), accounted for 7.39 per cent of that.
Hainan Free trade port[edit]
Main article: Hainan Free Trade Port
On 13 April 2018, General Secretary of the Chinese Communist Party Xi Jinping announced a plan to gradually make the island into a pilot free trade zone by 2020, and transform the entire island into a free trade port by 2025. This will involve inviting foreign and multi-national companies to set up their regional and international headquarters in Hainan. Goods and services would be subject to low or even no tariffs. The zone will become China's largest free trade zone, and the first trade port since 1949, when the People's Republic of China was founded. Part of the plan is to establish exchanges in commodities and carbon trading, international energy, and shipping. Emphasis will also be placed on the development of service industries including tourism, the Internet, healthcare, finance, as well as conference and exhibitions hosting.
Since the announcement in April 2018, Hainan had signed 159 contracts with major companies. In September 2018, China National Travel Service Group, China's biggest travel business conglomerate, relocated its headquarters from Beijing to Haikou. In October 2018, Baidu and Hainan signed a deal to build a 10-billion-yuan (US$1.45 billion) eco-village.
In September 2018, a symposium was held in Beijing on foreign investment projects in Hainan. During that gathering, the Hainan government signed contracts with 26 international companies including Globevisa Group, Merlin Entertainments Group, Viacom, Ikea Group, Mapletree Investments, Avis Budget Group, Star Cruises, and Boehringer Ingelheim.
To bring talented workers to Hainan, in November 2018 the Hainan government held a recruitment fair in Beijing in an effort to bring 7,471 people to Hainan to work in government agencies, companies, and other institutions.
Established prior to this announcement, and currently in existence, are the following economic and technological development zones:
Haikou Free Trade Zone
Haikou New & Hi-Tech Industrial Development Zone
Yangpu Economic Development Zone
In June 2020, China set the corporate income tax rate for Hainan Free Trade port enterprises engaged in specified manufacturing activities.: 137  In 2021, Hainan Free Trade Port Law of the People's Republic of China was adopted by the National People's Congress and ratified under the No.85 Order of the President of China in 2021. On 18 December 2018, feng guan (封关, which is directly translated into "customs closure") was implemented, making Hainan a separate customs zone. All goods sold to other parts of China from Hainan are treated as imports, in a similar way as Hong Kong SAR.
