Tourist trap (4)

Short-term pain

Nationwide tourism authorities have been trying to crack down on such tours, but have failed to warn tourists about the risks involved with them, Wang said.

The reference prices, taking fees for travel agencies and tour guides into account, can guide tourists in choosing travel agencies, so they can avoid zero- or negative-fare tours, Wang said.

"Therefore, travel agencies in Hainan will not offer prices below their costs, and they will concentrate on improving services," he noted.

Wu said Hainan relies heavily on revenue from tourism, and the local government may have concerns that strict measures against zero- or negative-fare tours could add to the prices of local tourism services and reduce Hainan's competitiveness.

During the Spring Festival holiday in 2013, Hainan earned 5.65 billion yuan in tourism revenue, up 32.6 percent year-on-year, with Sanya's tourism revenue during the same period accounting for nearly 80 percent of the whole province, official data showed.

"Restraints on zero- or negative-fare tours and increasing tour prices will affect the number of tourists in the short term, but it is worthwhile in terms of long-term development as it will bring prosperity and increasing income to Hainan," Fang Xinhai, deputy president of the HTA, said on February 20.