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China’s Hawaii Suffers From Oversupply

News Sanya, which is known as one of the most popular resort destinations in China and is even often called “China’s Hawaii”, will have to undergo a huge correction as its hotel supply is expected to triple by 2013.

Sanya is a beautiful resort located on a tropical island, so there’s no wonder why this place is so popular among tourists. However, is it popular enough to house three times more hotels? According to the comment made by the general manager and chairman of Tourism Association Michel Goget, in the nearest future the occupancy of hotels in Sanya will drop approximately 10%. In 2011 the average occupancy estimated 65-70% throughout the year.

Currently many international hotel chains name China as their main priority. Until 2014 a series of large and luxury resorts are scheduled for opening in Sanya, and now it’s clear that this destination will suffer from oversupply. The resort cannot attract more travellers than it does now, because the local airport is almost saturated.

Such fast development of Sanya started in 2009, when the Chinese government unveiled its plan concerning the development of the southern Hainan province. Sanya is the second largest city of the province. In 2011 the number of guestrooms on the island reached 7,000. This number will grow to 21,000 until 2013. In December 2011 were opened such large hotels as MGM Grand Sanya and St. Regis Sanya, which added 1,384 guestrooms to the hotel supply of the resort. Such well-known hoteliers as Starwood Hotels & Resorts Worldwide and Marriott International already have hotels in Yalong Bay notable for their private beaches and climate that is similar to Miami and Hawaii.


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