FTP has given Sanya a complete makeover

It has become a routine for my wife and me to spend about four months of the year in Sanya, the tourism paradise in Hainan province. It is our way of escaping the freezing temperatures of Beijing in winter. However, when we planned our trip this year, we noticed something unusual.

Even though the holiday season had not begun, air tickets had become expensive. Many airlines had reduced their discounts, and flyers had to pay nearly twice as much to get to the tropical island. Some airlines had stopped offering preferential fares for seniors. After extensive comparison of airfares, we settled for 2,000 yuan ($285) per ticket, which is almost twice the price we usually pay during this season.

The higher airfares were not the only change. Usually nine out of 10 passengers on flights to Sanya are elderly migratory birds like us. But this year we noticed a lot of young faces. My seat on the plane was sandwiched between a middle-aged man on a business trip and a young woman going to Hainan on a corporate errand.

For better or for worse, most of these changes can be attributed to the Dec 18 launch of island-wide special customs operations at the Hainan Free Trade Port. Shrewd as they are, hundreds of businesspeople from home and abroad are coming to grab the business opportunities thrown up by the new policies. And thousands of curious tourists are flying in to see what's happening in Hainan following the launch of the FTP. When they return home, their suitcases are heavier with duty-free cosmetics, apparel and luxury bags.

More surprises were waiting for us. The sidewalk outside our apartment compound in Sanya was newly paved and rows of colorful flowers had been planted. The new traffic rules meant there were fewer heavy trucks rumbling down the road outside our house, making the area much quieter and peaceful. These measures are part of the local government's efforts to beautify the environment to match Hainan's new status.

As we walked to the supermarket to buy some groceries, we noticed a store that sold seeds and fertilizers had changed hands. Renovation work was still underway but a banner informed us that it will be reborn as a bar — and attract a totally different clientele. At another shop, a fruit store, a banner proudly claimed that it is now "supplied directly by the whole world".

A hospital that had grown quite big in the past eight years had started a new expansion project. Hainan's new status allows it to access new medical equipment and drugs from all over the world tax free and without lengthy approval procedures. Many established hospitals in Beijing and Shanghai are joining hands with local counterparts, eyeing both business opportunities and technological upgrades.

Even the supermarket had transformed. Its ground floor is now a gym, fully equipped with domestic and imported machines. The gym is targeting white collar executives and businesspeople who are expected to flock into Hainan in large numbers thanks to the unfolding opportunities. A real estate agency, which was largely deserted till last year, now seems to be doing brisk business. An agent told us that "a lot more people are consulting us about renting or buying an apartment in the neighborhood".

A national snack chain has opened a new outlet just 100 meters away from its existing store. It is obviously not targeting the limited consumption abilities of the local residents but the increasing number of tourists and business visitors.

The opportunity is enormous to say the least. Sanya authorities reveal that within a week of the launch of the FTP, the four duty-free stores in the city sold goods valued at 630 million yuan, an increase of 47.2 percent compared with the same period of last year. During the same week, 997 new companies registered in the city, increasing the number of registered companies in Sanya to 298,000. The figure is impressive because Sanya's population is only about 1.12 million, with two-thirds being locally registered permanent residents while the others, I guess, are migratory birds like us.

Judging from what we saw and observed, Sanya and Hainan as a whole are poised for exponential growth. But I must admit that my optimism has traces of self-interest. After all, the growth and prosperity of Sanya will not only add to the island's economy but also push up the value of my apartment here.

The author is former deputy editor-in-chief of China Daily.

kangbing@chinadaily.com.cn