Hainan to become int'l tourist resort

One province that is in the midst of reining in runaway real estate prices is Hainan. The Province's Party Secretary, Wei Liucheng, talked about the island's development strategy, and how its related to the housing market.

Wei Liucheng says he's aware of the concerns about a growing income gap in Hainan, as the province aims to develop it into a major international tourism destination. He said the government's goal is to make ordinary people benefit from the island's future development.

Wei Liucheng, Party Secretary, Hainan province, said,"First and foremost, we will make the construction of affordable housing the number one civil engineering project. We plan to solve housing problems within three years. The target is to ensure every family has an adequate apartment to live in. There are two basic measures to achieve this. One is to curb housing prices. The other is to put a majority of the government's fiscal revenue into improving people's lives. "

Money has flooded into the tropical island province, after the central government unveiled a plan to turn it into an international tourist resort in ten years. January's announcement drove up housing prices. In response, the provincial government suspended land sales and approvals for new building projects. It also announced measures to strengthen supervision on housing transactions and to rein in speculation and land hoarding.

Local officials say the real estate market is stabilizing and say they are confident that there will not be a repeat of the 1993 real estate crash.

However, a CPPCC member says measures taken so far are not enough to rein in speculation.

Zhang Yunling, CPPCC member, said, "If you just issue some statement or regulations, its not enough. We all understand the Chinese economy is still on the road to recovery. A lot of money is waiting for opportunities. So many still believe that this is the place to invest. So I think the government should give a strong warning because Hainan had a lesson in the early 1990s."

Policies for increasing Hainan's attraction as an international tourist resort include loosening visa rules, duty free shops and developing its cruise industry.

Liu Ying, reporter, said, "Wei Liucheng also addressed speculation that Hainan will develop the gaming industry. He said the island will explore a sports lottery based on international accepted practise. But he does not see the possibility of gaming on the island in the foreseeable future.