Hainan, ‘China’s Hawaii’, rolls out events and coupons to catch domestic travel boom during Labour Day holiday

The government and businesses in Hainan launched events, promotions and optimised products and services to capitalise on a boom in domestic travel and consumption during mainland China’s Labour Day holiday, as long-haul travel bookings to the tropical island grew 15 times month on month.

The Hainan government stepped up with new attractions for the influx of tourists to the island. Haikou, the capital of China’s southernmost province, is set to start a range of cultural events during the holiday spanning from April 29 to May 9, including an architecture art festival, operas and concerts.

Businesses also geared up to welcome consumers, they told the Post. Sanya Duty Free Shopping Complex launched lucky draws for individuals who spend more than 15,100 yuan (US$2,182) and also increased transport services within the compound and to certain surrounding areas, said parent company China Duty Free Group. The complex became the largest single duty-free shop globally in terms of sales value in the first quarter.

Fosun Group’s Atlantis Sanya luxury resort has upgraded its food and catering offerings, as early bookings occupied 90 per cent of the rooms even before the start of the holiday season.

The measures come as the island, often compared to Hawaii, evolves into one of the top tourist destinations in the world’s second-largest economy. Local governments are trying to tap pent-up demand among Chinese consumers after the country suffered through Covid-19 lockdowns and infections until China’s reopening late last year.

With boosting consumption high on Beijing’s priority list for the year, the measures by Hainan and businesses there shed light on increasing efforts at the local level to take advantage of one of the best windows of opportunity for so-called revenge consumption, analysts said.

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Long-haul travel bookings to the province increased 15 times month on month in March, according to data from bookings agency Tongcheng Travel. Visits to the island quadrupled from a year earlier, the province’s Department of Tourism, Culture, Radio, Television and Sports reported, citing data from booking site Trip.com.

“This Labour Day holiday is a relatively nice time to travel in Hainan given suitable weather, because other parts in China may not be hot enough for water sports and swimming,” said Zhang Yi, CEO of consultancy iiMedia Research.

The province increasingly serves as an alternative to Southeast Asia for Chinese tourists, who deem it safer and more convenient, he said.

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Political events overseas and publicised cases where Chinese citizens faced difficulties during recent trips have discouraged some Chinese from travelling abroad, while long queues for travel visas to other nations are making domestic travel the primary choice for many, Zhang added.

Hainan, which is set to be largest duty-free port in China, is handing out more than 30 million yuan worth of coupons for consumers in a shopping festival from Friday through May 20, according to the provincial Department of Commerce.

The special event will feature live-streams promoting more than 200 brands in the province as well as quality products from countries in Southeast Asia, as Hainan is positioning itself as a connection point between mainland China and the Association of Southeast Asian Nations.

“Hainan has a very important role in this year’s travel and consumption [plan] during the Labour Day holiday,” said Fu Yifu, a senior researcher at the Suning Institute of Finance. “I’m positive about Hainan’s performance during the holiday due to its sustained attractiveness to Chinese tourists”, including its improved tourist attractions, travel environment and services and duty-free offerings.