Long live leisure!
Since Communist Party of China general secretary Hu Jintao’s 2008 directive that “Hainan must develop a modern service sector with tourism at the forefront,” all of Hainan, and Sanya in particular, has applied itself to the realization of this goal. Consequently, the bulk of the investment injected into the island has been directed into tourism-related assets.
Alex Tsai, the Sanya-region manager for Hainan Versailles Catering & Entertainment Management Co., is the son of Tsai Pao-liang, president of the Taiwan Businessmen Association, Sanya. Just 29 years old, the younger Tsai now runs his family’s Sanya restaurants and KTV businesses.
He recommends that future Taiwanese investors in Hainan focus on projects that are big, unique (such as a theme park, which Sanya currently lacks), accessible (such as inexpensive KTVs), or “high-class” (such as five-star hotels), projects oriented around recreation and tourism, and that have their own niche. He argues that profitable businesses don’t necessarily earn their money from the mass of consumers. More often, they earn it by targeting specific groups of consumers.
Anita Huang, deputy general manager of the Taiwanese owned and operated Le Parker, a five-star hotel located in Sanya, says that even more than financial capital, Hainan lacks “human capital.” She explains that Hainan’s service-industry workers lack the attention to detail of their Taiwanese counterparts.
The degree to which ordinary employees just “don’t care” drives Huang batty. She says that she’s constantly reminding employees to use standard polite expressions such as “please,” “thank you,” and “excuse me,” but “no matter how many times you tell them, they always forget.”
“The quality of service reflects the educational and cultural background,” says Huang. She recommends that new graduates of Taiwanese hospitality programs consider working on Hainan for a time. If they can get past the starting salaries of just RMB1,400 a month (roughly NT$7,000), the experience of working in what has become China’s hottest winter tourism destination will broaden their perspectives and enrich their résumés.
Though present-day Hainan still contains elements of its past, it is clearly no longer the special economic zone of 1988.
Having experienced the joy of cheap land, hemorrhaged profits during the bubble years, and agonized over the seizure of agricultural land, the first generation of Taiwanese investors warns the ambitious younger generation of investors: “Unless you have deep pockets, stay home.”
The younger generation, which has jumped on the “international tourism” bandwagon, offers advice of its own: “Unless you’re going to invest in the right areas, stay home!”
In spite of having lost much of their land, Taiwanese businesspeople have maintained a foothold on Hainan. But can they get in step with Hainan’s march towards development? Nowadays, they need to give the question serious thought before plunking down their cash.
Taiwanese investors began developing Hainan some 20 years ago. Having since experienced a real-estate bubble and land seizures, some are leaving, others staying, and still others are preparing to leap aboard the “international tourism” bandwagon. The photo shows the manmade Phoenix Island, located just off the coast from Sanya, with its landmark skyscrapers.
Seeing opportunities in the tourism sector, Taiwanese businesspeople are investing in Hainan hotels. The photo shows the Le Parker hotel in Sanya.