The Challenges of Tourism Diversification, the Role of Local Governments

The once neglected Chinese island of Hainan has been transforming itself into a tourist paradise since the early 2000’s. The local government has been deeply involved in the making of this destination by forging an attractive image, implementing touristfriendly policies, developing transportation infrastructures and creating a tourism industry. The island has become a popular destination for Chinese tourists but has not turned itself in a truly international holiday island. Although supervision and large investments from local authorities are necessary to develop tourism, local governments should not get too intrusive so that local entrepreneurs could grow and tourism gets diversified.