Island hopes to double visitation this year
The government of Hainan Island in China is moving forward with a plan to provide visa-free entry to visitors from 59 countries, the first local government in Mainland China allowed to do so.
For that reason, the island known for its tropical climate and beachfront resorts “is facing an unprecedented opportunity for growth and development,” says Xu Xiaoliang, co-president of Fosun International Ltd., which just opened its new Atlantis resort in the southern city of Sanya. According to the South China Morning Post, that lavish resort may set the standard for those to come on the island—possibly including integrated resorts with gaming.
Amenities at the Atlantis include 340-square-meter (3,660-square-foot) suites that go for US$17,200 per night. Each of the five suites are fully submerged in the waters of the Ambassador Lagoon, of the world’s largest open-air aquariums that is home to 100,000 marine animals.
The Post called Atlantis “the poster child for China’s southernmost province of Hainan, known as ‘China’s Hawaii,’” which could double the number of foreign tourists to 2 million by the end of 2018.
“Hainan will see significant increase in international tourist numbers after the visa free policy,” said Zhou Ping, deputy director of Hainan Provincial Tourism Development Commission.
Earlier this year, a visit to Hainan by Chinese President Xi Jinping raised hopes that the PRC’s smallest province will also get legal gaming. There has been a growing school of thought that gamblers in Macau, the only place in China where casinos are permitted, hand over most of their gaming dollars to foreign operators Las Vegas Sands Corp., MGM Resorts International and Wynn Resorts.
“A more nationalist angle on the question of gambling and tourism is now finding its moment, dovetailing with Xi’s emphasis on a resurgent China taking its place on the world stage,” stated an article in Bloomberg News.
Companies like Fosun, which has invested 11 billion yuan (US$1.74 billion) investment in Hainan may be getting in on the ground floor of a boom on the holiday island. According to Reuters, in 2017 only 1.1 million out of 67 million visitors to Hainan came from abroad. Resorts like Atlantis should start to change that.
“Atlantis Sanya is not only a forerunner of the supply-side reform of the tourism industry, but is also becoming a new landmark of Hainan tourism,” Xu Zhenling, vice mayor of Sanya said at a news conference before the resort’s grand opening.
As a possible gaming destination, Hainan has the potential to “divert the torrent of gambling-loving Chinese away” from rival markets like Vietnam and Australia, while also limiting capital outflow and ensuring gaming revenue stays home, a clear goal of the central government.
A party reform group headed by Xi is reportedly considering allowing online gaming and sports betting in Hainan, a first step to legal casinos. Xi said the Communist Party’s Central Committee believes Hainan will play a key role in China’s opening up to the world and advancing economic globalization.
“Hainan has extremely high hopes,” said Liu Feng, a researcher at Hainan Normal University’s Maritime Silk Road Research Institute.
A report on CalvinAyre.com added that the island’s “cashless casinos,” which offered table games but paid out only in credits for non-gaming resort amenities, could make a comeback. A lower court ruling that closed the operations has been overturned. Ben Lee, managing partner at gaming consultancy iGamiX, said that it could not have happened “without approval from Beijing.” Lee said Beijing is “finally going to let them try this concept again. Online lotteries and sports betting are all part of this liberalization.” He says it’s possible the cashless casinos could eventually become full-fledged gaming operations.
