Haikou hotels poised to profit from free-trade area

Hotels in Haikou have seen a steady increase in corporate and leisure bookings in recent months, and this growth is expected to be boosted by the central government’s plans to turn Hainan into a free-trade area.

Hotel reservations have been increased by the expansion of visa-free entry to Hainan and the introduction of more direct foreign flights to Haikou.

Erica Loh, managing director of The Ritz-Carlton Haikou and Renaissance Haikou, says IT companies such as Alibaba (owner of the South China Morning Post) and Tencent plan to set up offices in Haikou and this is expected to attract more companies to the city. This, together with projects by Hainan Airlines, is expected to provide more corporate business for hotels.

Patrick Liu, general manager of Hilton Haikou, says the development of Haikou is encouraging and a lot activities and events will take place this year to coincide with the 30th anniversary of the establishment of Hainan Province. He says the central government will offer more support and resources to Hainan as part of the free trade area initiative. There will be more development projects, and more international talent will come to work in Hainan.

The meetings, incentives, conventions and exhibitions (MICE) sector is another growing market for the hotels. Kevin Shen, general manager of Shangri-La Haikou, says MICE has become an important source of business as the Haikou government has been offering incentives to attract more events to the city.

“The government puts more energy to build Haikou as the perfect destination of tourism and MICE,” Loh adds.

Shen says many leisure travellers previously used Haikou as a stopover on the way to Sanya, making the most of cheaper airfares; but the opening of attractions such as Movie Town and Wet ‘n’ Wild water park will mean more visitors are likely to stay longer in the city. Located within the Mission Hills area, 15 minutes’ drive from Haikou Meilan International Airport, The Ritz-Carlton Haikou and nearby Renaissance Haikou share some event, dining and recreational facilities. Both offer guests access to Mission Hills’ 10 18-hole golf courses.