Once on the fringes of China's economy, tropical Hainan Island has blossomed into a prosperous province in the two decades following its designation as a special economic zone.

The island off the coast of south China, before under the jurisdiction of Guangdong Province, was designated a special economic zone in 1988 and then upgraded to a full province.

Twenty years ago Hainan began developing its newly offered economic status that entitled it to preferential policies - and its economy has taken off.

Gross domestic product (GDP) of the province hit 122.96 billion yuan last year, an increase of more than 20-fold from 5.73 billion yuan in 1987. Annualized 11.4 percent growth over the past two decades was 1.6 percentage points higher than the national average.

Its productive economy resulted in per capita income that also grew robustly over the past 20 years at an aggregate rate of 9.7 percent annually.

Its economy not only grew in volume, but has also expanded in breadth. Once heavily reliant on agriculture, the island is now a rising industrial powerhouse and tourism mecca.

Agriculture's proportion in the economy has dropped from 50 percent in 1987 to 31 percent last year as the industrial sector increased from a 19 percent share two decades ago to 29 percent last year.

Service-related industries also maintained steady growth, driven by burgeoning numbers of tourists that now generate 39 percent of the island's GDP, compared to 31 percent in 1987.

The growing economy has also translated into strong tax and other revenues for the provincial government, increasing from a meager 296 million yuan in 1987 to 15.24 billion yuan in 2007, a 50-fold jump. The revenues have greatly strengthened the provincial government's capacity to offer more public services to the people.

The government's "one province and two bases" strategy plans to further develop the island into an industrial province while maintaining its tropical agriculture base and tourism growth.

The range of the island's industries - before 1987 mostly agricultural - has grown to include automobiles, paper making and petrochemicals.

When adjusted for inflation, industrial output value grew 15.5 percent annually over the previous 20 years to breach the 100 billion yuan mark last year.

Plans for industrial growth in Hainan intend to minimize pollution and depletion of resources in a bid to protect the ecology of the tourist hotspot.

Because of its location and climate, further development of the island's tropical agriculture is a priority on the government's economic blueprint.

Hainan is now a chief supplier of vegetables and fruits in China, especially in winter. It is also gradually developing as a significant supplier of livestock to the country.

The value of its agricultural output more than quadrupled in the past 20 years to reach 38.2 billion yuan in 2007. When adjusted for the cost of living, figures show the agriculture sector has grown 8.5 percent annually since 1987.

The booming tourism industry is another bright spot in Hainan's economic development. Its travel sector took in 17.13 billion yuan in revenues last year, 149 times of that in 1987.

The island now has numerous resorts, some of which have become household names in China and familiar internationally.

Yalong Bay in Sanya is famed for its beautiful beach, while the annual Boao Forum in the city of the same name is well-known in the country and the region.

(China Daily May 4, 2008)