Development Magnet

The cruise line connecting Sanya City of Hainan with the Philippines launched on December 22, 2017

Hainan island takes advantage of its assets and is on track to pilot a new phase of opening up

foreign visitors to China looking for white beaches, palm trees and tropical scenery recently received some welcome news. Starting on May 1,people from 59 countries can enjoy 30-day visa-free stay in the country’s Hainan Province, the youngest province in the country.This new policy is among a slew of substantial policies unveiled to deepen the reform and opening up process in the province and the country as a whole.

Since 2010, group visitors from 26 countries could enjoy either 15-day or 21-day visa waivers by booking through travel agencies. The new policy will give greater access to the island province, and is expected to attract tourists in larger numbers.

Established in 1988, and officially China’s youngest province as well as a special economic zone (SEZ), Hainan is blessed with assets. As the only tropical province in China, it developed in the past three decades from a poor fishing and farming area into a vigorous international center for tourism and green agriculture by taking advantage of its geographical location, natural resources and folk culture.

Open for business

The reform and opening up pace has never slowed down on the island and will, in fact, only speed up in the future. Hainan is set to become a free trade zone and will gradually become a free trade port, which represents the highest level of opening up,as described by President Xi Jinping during an event marking the 30th anniversary of the establishment of the Hainan SEZ on April 13. The following day, the Central Committee of the Communist Party of China (CPC)and the State Council released a joint document setting the timetable for further opening up. The goal is to establish a free trade system in Hainan by 2025 and develop the free port system to a higher level by 2035.

设定某一位置未知节点处于不停移动的状态，根据节点的移动特性，可以用 mk～P（mk｜mk-1）表示该节点在前一时刻的位置为mk-1时，当前时刻位置在mk的概率，该概率分布称为转移分布。

According to Hua Chuang Securities’ analysts, there are a number of important port cities in Hainan which could help the province achieve rapid development in terms of logistics, transportation and services. This suggests investors should closely watch companies related to ecological landscaping, tourism,construction materials, transportation, as well as keeping an eye on favorable tax policies.

加强同步注浆动态控制，调整浆液配合比以缩短初凝时间（保持在6h），将同步注浆量控制在理论空隙的180%～220%，适当增加上部注浆管注入方量，使同步注浆速度与掘进速度相匹配，进行同步注浆压力与注浆量2个参数双控。

Tourism is a pillar industry in the province.Even though the island has long been a favorite destination for travelers, it has suffered from teething problems at the same time. To provide better services and create a good environment for tourism, various measures have already been taken.

The island has also been host to several Miss World pageants. These events have served to raise the island’s profile and expose it to the cutting edge in business practices and pioneering services. On April 14 this year, the State Council officially released the guidelines for the comprehensive and deepening reform and opening up in Hainan in various sectors, including tourism, medical care, education and sports.

Official figures show that in the past five years, the province’s GDP increased by an annual average of 8.1 percent to 446 billion yuan ($71 billion) in 2017. Since the 18th CPC National Congress in 2012, the number of tourists visiting the island rose from about 33.2 million to 67 million in 2017. Urban residents have seen their incomes rise by 9.6 percent every year. For rural residents,the increase has been 11.7 percent annually.

1.贵州茅台247.34亿元；2.五粮液94.94亿元；3.洋河股份70.39亿元；4.泸州老窖27.51亿元；5.山西汾酒12.64亿元；6.古井贡酒12.56亿元；7.口子窖11.42亿元；8.今世缘10.29亿元；9.迎驾贡酒4.98亿元；10.水井坊4.63亿元；11.伊力特2.90亿元；12.舍得酒2.73亿元；13.老白干酒2.44亿元；14.酒鬼酒1.61亿元；15.金徽酒1.60亿元；16.青青稞酒0.87亿元；17.金种子酒0.016亿元；18.皇台酒业-0.42亿元。（江源荐，佳龙编辑）

By hosting a series of diplomatic, economic and cultural gatherings, Hainan has gained international fame. Xi’s four attendances at the Boao Forum for Asia (BFA)Annual Conference since 2010 have been

Photos taken in 1991 (above)and 2018 (below) show the great changes of Sanya City of Hainan

Embracing tourism

A major highlight, including this year when Xi delivered a keynote speech at the BFA Annual Conference 2018, vowing greater nation-wide opening up.

郭村有八百年历史，是旧时宁国、徽州、池州三府交界之地，兴旺的时候，村里有十座祠堂，店铺毗连，商贾云集。

In 2015, the island’s Sanya city, a major destination, set up China’s first tourism police patrol to maintain order in the tourism sector.Their services include answering queries,resolving disputes and cracking down on crime. Police officers are trained in foreign languages to overcome the language barrier and better help overseas tourists. In addition,Sanya tourism authorities published a document in 2017 soliciting information regarding fraudulent schemes that target tourists,offering whistle-blowers rewards of up to 150,000 yuan ($22,530). The opening up in the medical and education areas has also improved. With the threshold for imports of medical equipment and pharmaceuticals lowered, foreign doctors can now extend their practice. In addition, the introduction of high-quality educational resources to the island is also being encouraged.

To keep up with the rapidly increasing tourism on the island, direct flights between China and Mexico were launched on March 21, the first nonstop flights between China and Latin America. Currently, there are 57 international air routes connecting Hainan with the rest of the world. The number is expected to increase to 100 by 2020, according to a report by Xinhua News Agency. In 2017, the international airports in Haikou,capital city of Hainan, and Sanya received more than 40 million passengers. Shopping has become another attraction for tourists since a duty-free program was introduced to Hainan in April 2011. Visitors are allowed to buy duty-free products worth up to 16,000 yuan ($2,553) a year when taking a flight or train offthe island. This has proven to be an important driver for the island’s tourism industry. The provincial finance bureau announced in January that the offshore dutyfree shops on the island have made 30.59 billion yuan ($4.77 billion) in total sales since the program was launched, and the average duration of tourist stays has increased by 0.6 days. Horse racing is another area being encouraged on the island. Hainan explored developing horse racing back in the 1990s,but gave it up later because of lack of support from the Central Government.

“Hainan has the advantage of being the gateway to the Association of Southeast Asian Nations (ASEAN) countries. It should be a pioneer in opening up,” said Xi.

“Horse racing will be a strong support to tourism,” said Lin Xianpeng, a professor at the Beijing Sport University. “If it proceeds well, it can be a model for other places in China aiming to promote this sport.”

In addition, cruise tourism is expected to grow as Hainan continues to serve as an important hub along the 21st Century Maritime Silk Road, a major part of the Belt and Road Initiative. Official figures show the Chinese cruise market has seen fast growth in recent years, and the country has become the world’s second-largest market for cruise travel after the United States.

The former National Tourism Administration said China is expected to transport 150 million Chinese tourists, who will spend$200 billion in the Belt and Road countries during the 13th Five-Year Plan period (2016-20). In return, China will attract 85 million tourists from these countries, bringing in about $110 billion in tourism revenue. In 2006, Sanya Phoenix Island International Cruise Terminal was put into operation.Now the second phase of this terminal is under construction. Once completed, it will be the largest cruise terminal in Asia.

陈江海介绍，“火星农场的项目在茂名地区甚至广东垦区尚属首例，农垦自留地转性拍卖的项目，是农垦改革政策下的一种新尝试。”

Liu Xiaotao, Deputy Director of Coastal Defense and Port Office of Hainan Province,said that by 2020, there will be five towns with substantial cruise travel on the island.

“Cruise tourism has become a new emerging industry with great potential and strong local characteristics in Hainan,” said Liu. ca