Who benefit most from the Hainan development plan?

09:28, January 06, 2010      

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The State Council released a document January 4 detailing the development of Hainan into an international tourist destination, explicating 6 strategies for the development plan. Listed companies in the 3 industries of tourism, transportation and infrastructure construction will benefit most from the plan.

The 6 strategies include developing Hainan into a pilot region for China's tourism industry reform, building the island into a world-class leisure travel and holiday tourist destination, establishing a demonstration zone for China's ecological development, making Hainan an important platform for international economic cooperation and cultural exchanges, developing resources in the South China Sea and developing Hainan into a service base as well as a modern national tropical agricultural base.

Industry insiders say that the section of Hainan-based listed companies is expected to attract close attention from investors in the near future. As 2 of the 6 strategies involve the tourism industry, relevant enterprises in Hainan which is home to many national-level tourist spots will benefit from the gradual implementation of the policies.

Hainan is different from China's other regions, featuring a typical island economy in which enterprises based outside Hainan have made significant contributions to Hainan's economic development. The development of an international tourist destination will upgrade Hainan's traffic and transportation. Hainan's local traffic and transportation enterprises will be the first to benefit from the plan.

Furthermore, Hainan will develop a batch of outstanding tourist spots. The development of an international tourist destination will surely bring about enormous infrastructure construction, so relevant infrastructure construction enterprises with real estate development as their main business will also be the first to benefit from the plan in the initial development period.

By People's Daily Online
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