There has been an explosion in the number of luxury hotels recently in Hainan, the country's southernmost province, also known as "China's Hawaii."

The island now has 22 five-star hotels, said the Hainan Tourism Development Commission. Another 22 hotels have also been built according to the five-star standard but have yet to be ranked, and there are plans for 40 more high-end hotels in the province.

But although Hainan offers plentiful options for wealthy travelers, many have complained that it is becoming too expensive and that efforts need to be made to balance the local tourist industry.

Sanya scenery

About 15 years ago, before the central government decided to develop Hainan into an international tourism resort, the most popular beach in the southern city of Sanya, Yalong Bay, had relatively few hotels near it.

But since the first high-end resort was built in Sanya in 1996, there has been a rush to develop luxury hotels in the city. In May 2009, there were 10 five-star hotels being constructed around the city's Haitang Bay at the same time.

The city now has 13 out of the 22 five-star hotels in Hainan. With its beautiful, white sandy beach, warm weather and luxury recreational facilities, Sanya has attracted increasing numbers of visitors each year.

During last month's Spring Festival holiday, nearly 490,000 tourists flocked to Sanya, nearly 40 percent of the total tourists visiting Hainan.

"Development of Hainan tourism is highly unbalanced at present, with the south attracting far more tourists than the northern areas," said Lu Zhiyuan, director of Hainan Tourism Development Commission.

Zhao Huanyan, chief consultant at Shanghai-based SAO Hotel Solution Consulting, said that tourism assets in other parts of the island should also be fully tapped.

"The popularity of Sanya as a hot tourism spot should be made use of in order to help boost tourism in other parts of Hainan, such as northern cities like Haikou," said Zhao.

As the capital city of Hainan, Haikou only has six five-star hotels, but international hotel brands have started to eye the great potential there.

Langham, a British luxury hotel brand, announced last week that it will join the sector in Hainan by establishing a five-star hotel in Haikou. The property is expected to open in 2014.

Seven more five-star developments are expected to be completed in the city this year, including Westin, Hilton, Marriott and Shangri-la hotels.

Too much luxury?

The fast expanding luxury hotel scene in Hainan has aroused concerns that the sector is now over-developed. In the third quarter last year, the occupancy rate of five-star hotels in Hainan was only 53.7 percent, according to SAO Hotel Solution Consulting. Fu Gangye, a tourism expert with Beijing Hospitality Institute, said that whether the sector is oversized or not depends on the development of local tourism.

"If the province successfully grows into an international tourism destination in the future, the local hotel sector will still have room for further growth. Otherwise, it will be a massive waste for the province to have so many high-end hotels," said Fu.

But there is still a long way to go before Hainan can be considered an international resort. In 2011, overseas tourists accounted for just 2.6 percent of visitors to Hainan.

Experts believe that Hainan should look into developing more mid-range and low-end accommodations for a better balance, since most travelers care about prices as well as relaxation.

Hou Tao, director of Qunar Tourism Research College, noted that hotels should consider how to entice less affluent tourists in order to cope with the high vacancy rate in the off-season.

"As Hainan grows into a popular tourism destination, economic hotels should also be developed. Hainan should not be exclusive to rich people," Hou noted.

Brett Butcher, CEO of Langham Hospitality Group, said that the company's Eaton Hotel brand, which offers more affordable prices, may also enter the Hainan market.

Development problems

In 2010, the central government unveiled a plan to develop Hainan into a top international tourism destination in 10 years. One way they planned to attract international travelers was to make residents of 26 countries - including the US, Australia and some European and Asian countries - exempt from visa requirements when traveling to the island.

Also, since April 20 last year, tourists in Hainan have been able to claim back taxes on imported goods, as part of a plan to develop the resort into a shopping destination.

During the Spring Festival last month, over 1.35 million tourists visited the island, up 20.3 percent year-on-year. But many have since complained online that the tropical paradise has become an overpriced tourist trap.

An Internet user called Luo Di said on his Weibo that a seafood restaurant charged him nearly 4,000 yuan ($635) for three fairly ordinary dishes during his trip to Sanya in the Spring Festival holidays. And many Weibo users claimed that they had been overcharged by local taxi drivers. Hotels also hike their prices during the peak season. A five-star hotel suite in Hainan could cost some 10,000 yuan a night during the Spring Festival, Xinhua said earlier this month.

These problems show that the local authorities have put too much emphasis on introducing high-end facilities, but management and local infrastructure has not kept up, said Zhao from SAO Hotel Solution Consulting.

A local surnamed Liu, who runs a seafood restaurant in Sanya, said that one needs to pay some 100,000 yuan to get a license from the government for a seafood restaurant in Sanya, but in a less popular tourist spot, the same license would only cost around 6,000 yuan. "And it is very hard to get a license. The vendor needs to turn to agents who have connections with government officials."

A local driver surnamed Liang revealed that unlicensed taxis are common in Sanya, but as long as they pay certain fees to officials, they can go on operating, even if consumers complain about them.

Fu from Beijing Hospitality Institute said that Hainan's infrastructure and management still lags far behind international tourist destinations like Hawaii, Bali or Phuket.

"Fancy hotels alone aren't enough to attract tourists. The island should provide quality services like transportation, catering, and accommodation. Otherwise the island will lose its attraction soon," said Hou from Qunar Tourism Research College.