Changing tack

However, a series of challenges and obstacles, which experts say need urgent attention, are testing the yacht industry in Hainan.

The upstream aspect of the industry involves design and manufacturing, the midstream sales and consumption, while the downstream covers maintenance, repairs, and financial services, said Hu Xiaoming, a special adviser to the Sanya Central Business District Administration and general manager at Hainan Marine Trade Exchange Services.

Zuo Zhiyong, secretary-general of the Sanya Cruise and Yacht Association, said "even within the midstream segment, where Hainan's yacht industry shines, there are shortcomings".

Despite flourishing yacht tourism in Sanya, operational costs have been hampered by high berthing fees, Zuo said. For instance, one well-known yacht club in Sanya pays an annual fee of around 1 million yuan to berth nine yachts.

Sanya has nearly 1,000 yacht berths, and more than 90 percent are privately owned. This has led to a shortage of affordable public berths, Zuo said.

Another critical part of the industry that needs attention is the upstream design segment, experts said.

Hu believes there is an urgent need to accelerate recruitment and training of yacht designers as well as specialists in construction, woodworking, plumbing, fiberglass work, sheet metal painting, electromechanical installation, and technical evaluation.

After setting up operations in the Lingao Jinpai Port Development Zone, Lingao Haiquan Yacht Co has boosted its manufacturing capacity, resulting in an uptick in orders.

"The growth potential of the yacht industry within the Hainan Free Trade Port is substantial," said Wu Yanfeng, assistant to the company's general manager.

In order to attract more yacht manufacturers to the province, facilities to support the industry need to be expanded and better access to land and marine resources guaranteed, Wu said.

"We hope that raw materials such as steel plates and paint can be supplied locally. Additionally, the construction of suitable sheltered harbors and yacht berthing areas are essential to alleviate the concerns of businesses," Wu added.

The company has secured orders worth about 25 million yuan this year, coming from countries including Singapore and the United Arab Emirates. It is aiming to produce 20 vessels this year, with a total output value of 80 million yuan.

"Under the Hainan Free Trade Port, we want to explore international markets and promote China's 'smart manufacturing' new energy yachts on a global scale," he said.