DOCSLIB.ORG

The Hainan Opportunity

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Hainan Opportunity HAINAN HONG KONG + DUBAI + SINGAPORE? Oliver Wyman’s Point of View 6 May 2021 CONFIDENTIALITY Our clients’ industries are extremely competitive, and the maintenance of confidentiality with respect to our clients’ plans and data is critical. Oliver Wyman rigorously applies internal confidentiality practices to protect the confidentiality of all client information. Similarly, our industry is very competitive. We view our approaches and insights as proprietary and therefore look to our clients to protect our interests in our proposals, presentations, methodologies and analytical techniques. Under no circumstances should this material be shared with any third party without the prior written consent of Oliver Wyman. © Oliver Wyman BASIC FACTS Key statistics of Hainan Key economic zones in Hainan province HAIKOU population 9 MN Positioned as center of Population of Switzerland or Austria conference and exhibition Qionghai Bo'ao 35,354 sq km Size of Belgium Wanning SANYA Tropical beach; Positioned EUR 71 BN GDP Other cities are still 0.54% of China as tourism destination comparatively under-developed GDP of Luxembourg International airport 1. Excluding Hainan resident travelling in Hainan; 2. As of 2020 Domestic airport Source: Hainan government announcement, Oliver Wyman analysis Major seaport © Oliver Wyman 3 A CRITICAL COMPONENT OF PRC GOVT’S DUAL CIRCULATION PLAN CONSUMPTION & RE-SHORING HAINAN MASTERPLAN • With economic growth slowing down, pushing consumer • As part of the grand plan, Hainan is set to become a full- spending has become even more critical for PRC government island free trade port (FTP) with systems in place by 2025, • Dual-Circulation has been set as a key economic driver in the fully matured by 2035 14th Five-Year Plan • Multiple programs are developed to accelerate re-shoring of consumption, incl. FTZ, CBEC + + 1 Policy framework for Hainan 6 4 Source: Government announcement © Oliver Wyman 4 THE GRAND MASTERPLAN “6+1+4” POLICY FRAMEWORK 1 6 4 Constructing Ensure facilitation in: Five aspects of Modern Industrial • Tax system • Trade freedom and • System • Social governance Investment facilitation Institutional • Capital flow (medical, finance ) • Rule of law system • Access for people + Construction • Risk prevention and • Transportation Safe and Orderly control system • Flow of data Flow of Data Modern service High-efficiency Tourism High-tech industry industry1 agriculture 1. Including medical and health, international finance, professional services, etc. Source: Hainan government announcement, Oliver Wyman analysis © Oliver Wyman 5 TURNING HAINAN INTO A WORLD CLASS TOURISM HUB , 23 hotel projects with Duty Free shopping Infrastructure Specialty travel total of 11,208 hotels • Expansion of offshore duty-free • Investment in transport • Designated destination for shopping targeting domestic doubled over the past 5 years medical/aesthetic, rural and travelers • 29+ hotel projects ongoing, cultural tourism • Haitang Bay Duty Free Shopping adding to the 122 hotels1 in • Positioned as a cultural hub for Center as the world’s largest 2020 One Belt One Road standalone duty-free shop 1. Those 122 hotels are star rated hotels Source: Chinese Government, National Bureau of Statistics, Oliver Wyman analysis © Oliver Wyman 6 HAINAN SAW ~50 MN CHINESE TRAVELERS IN 2020 AND EXPECTS TO WELCOME ~100 MN BY 2025 Chinese travelers to Hainan, 2019 – 2025F MN trips +10% 97 91 83 +17% of -19% 74 ~60% 67 2019 international travel scale (155MN) 62 54 ~2x 2018 Hong Kong scale (51MN) 19 20E 21F 22F 23F 24F 25F Source: Hainan Tourism Board, Oliver Wyman analysis © Oliver Wyman 7 A WELCOME ALTERNATIVE FOR PAST INT’L TRAVELERS, STUCK IN CHINA BECAUSE OF COVID Question: How many times have you been to Hainan in the past 12 months? % Chinese international travelers1 1 time 39% None 44% 3% 14% 2 times 3 times or more 1. Chinese aged 18+ who traveled internationally (including Macau, Hong Kong and Taiwan) in 2019 N = 2,000, weighted Source: Consumer survey, Oliver Wyman analysis © Oliver Wyman 8 2 YEARS OF ADVANTAGE BEFORE INTERNATIONAL TRIPS RECOVER TO 2019 LEVEL Number of outbound trips by Chinese travelers 2018-2024F, MN PAX Before COVID COVID Projection Back to baseline 51 51 +3% 47 48 47 42 44 39 40 39 39 39 40 36 35 35 33 25 17 18 13 10 6 3 0 1 2 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021F 2022F 2023F 2024F (150 MN) (155 MN) (20 MN) (20 MN) (89 MN) (174 MN) (192 MN) Source: Chinese traveler recovery dashboard (Apr 26) © Oliver Wyman 9 HAINAN IS HERE TO STAY EVEN WHEN INT’L TRAVEL RESUMES Willingness to travel to Hainan % respondents If borders are still closed… If borders are reopened… % willing to travel to Hainan as an alternative of international travel % respondents who ranked Hainan as their top 3 destinations Hainan travelers 98 2 48 52 Non-Hainan travelers 88 12 29 71 Unlikely Likely Others Top 3 destination Question: If travel ban is still in effect In the foreseeable future, how likely will you travel to Hainan as an alternative to international travel? Question: Assume the pandemic is fully under control and China has resumed travel with the entire world, what would be your top destination to visit? N = 2,000, weighted Source: Consumer survey, Oliver Wyman analysis © Oliver Wyman 10 SIMILAR IN POPULARITY AS HONG KONG Question: Assume the pandemic is fully under control and China has resumed travel with the entire world, what would be your top destination to visit? Top 3 locations, % of respondents who traveled internationally in 2019 41 40 35 33 28 25 25 24 21 14 12 Hong Kong Hainan Japan Western Singapore Korea Macau Australia / Thailand North Taiwan Europe New Zealand America vs. 20181 +23% +21% -13% -1% +13% +2% +14% +18% -5% +1% +3% N = 2,000; weighted; 1. Except Hainan (2019) Source: Consumer survey, Oliver Wyman analysis © Oliver Wyman 11 THE JOURNEY TO A FULL DUTY-FREE ISLAND HAINAN DUTY-FREE Launch of Resident Duty-Free • RMB 8K/year personal quota • Applicable for Hainan residents Increased to RMB 16K/year RMB 30K/year • Increased to 21 categories 38 categories personal quota personal quota • Details to be announced 2011 2012 2015 2016 2018 2020 2021 2025 Introduction of Offshore Duty-Free Relaxation of Offshore Duty-Free Full Island Duty-Free (Expected) • RMB 5K/year person quota • RMB 100K/year personal quota • Most products will be duty and tax free • 18 product categories • Increased to 45 categories • Removed most product-level quota restrictions 1. To be announced Source: State Council “Master Plan for the Hainan Free Trade Port “, expert interviews, Oliver Wyman analysis © Oliver Wyman 12 DUTY FREE: HOW BIG ? 30+ % Hainan duty free sales forecast of China luxury spending in 2030 ? 2019-2025F, BN EUR ~301 Bank of America projection in 2021 Q1, driven by: Latest gov. target is €8 BN (incl. • New licenses and malls , 5x CDFG, or 7x DFS duty-paid), duty-free est. to be • Entry of international suppliers €5-6 BN 2x • Price advantages 2020 sales from 4 DF stores • Potentially brands could operate their own in Hainan is €4+ BN with duty-paid e-commerce stores when Hainan becomes fully tax-free 14 Morgan Stanley projection in 2020 Q3 +102% 11 8 5 6 2 4 19 20 21F 22F 23F 24F 25F 1. Bank of America estimate Hainan total sales in 2025 to be EUR 33.34 BN, inclusive of duty-paid channels which amounted to 85% in 2019 Source: Bank of America, Morgan Stanley, Oliver Wyman analysis © Oliver Wyman 13 COMPELLING OFFERINGS IS THE BIG UNKNOWN. PENETRATION IS KEY Breakdown by key drivers1 2019–2025F +10% -19% +17% # of travelers in 91 97 74 83 Hainan2 67 54 62 (MN trips) +6 pts. +5 pts. +3 pts. 21% 17% 19% Penetration of 12% 16% Hainan duty free3 6% 8% +7% +19% +76% 1,280 1,360 1,030 1,120 1,200 Average spending 790 (EUR) 450 19 20 21F 22F 23F 24F 25F FX: EUR/RMB = 7.8: 1 1. Based on Morgan Stanley forecasts 2. The tourists number includes only tourists from outside Hainan (Hainan local tourist is ~20% of total tourists) which are unqualified for duty-free 3. Number of purchases as a % of number of travelers, multiple purchases in one trip are counted separately Source: Ministry of Commerce, Hainan tourism board, Morgan Stanley, Euromonitor projection, Oliver Wyman analysis © Oliver Wyman 14 MANY AFFORDABLE MODE OF TRANSPORT ALLOWING PEOPLE OF VARIOUS INCOME TO VISIT WITH EASE Hainan travelers by arriving transportation, 2019 Travel time and costs % of travelers Flight Ferry & train Self-driving & bus 11%~19% BEIJING 3 hr 45 min (EUR 250) Train is carried by ferry through the Qiongzhou Strait (between Hainan and 22%~25% 58%~65% Guangdong) SHANGHAI 2 hr 50 min (EUR 250) 5 trains (Departure station: Harbin [northeast], Changchun [northeast], GUANGDONG PROVINCE Shanghai, Beijing, Zhengzhou) HAINAN 1 hr 20 min from Guangzhou (EUR 230) 6+ hr from Zhanjiang (EUR 9) 1 hr from Xuwen (EUR 5) Source: Ctrip, Hainan Tourism Bureau, Oliver Wyman analysis © Oliver Wyman 15 ~70% OF INT’L TRAVELERS SEE IT AS A LONG-TERM SHOPPING PARADISE Preference for shopping when int’l travel resumes Top rationale for continue shopping in Hainan – Overseas vs. Hainan % respondents, by household income N = 2,0001 1 Lower travel expense 54% 29% 2 Better shopping experience 20% 3 Support for local tourism 13% 71% Hainan is posing a threat to Hong Kong and Korea as a world-class shopping paradise Revert to mostly overseas shopping Continue shopping in Hainan Question: Do you think you would substitute your overseas shopping with Hainan when travel resumes? 1. Weighted Source: Consumer survey, Oliver Wyman analysis © Oliver Wyman 16 THE REAL SIZE OF HAINAN IS STILL DEPENDENT ON BRANDS’ SUPPORT Comparison of Sanya CDF Mall and Hong Kong Harbour City1 Sanya CDF Duty Free Mall Hong Kong Harbour City Sales Area 72K sqm 185K sqm Sales Value 10.4 BN RMB (2019) 33.6 BN RMB (2018) # of Beauty Brands 58 323 # of Fashion & 196 335 Accessories Brands Selected Brands 1.
Load more

Recommended publications
  • Overview of Hainan Province
    Overview of Hainan Province Geographical Location Situated at the southernmost tip of China, Hainan sees Guangdong across the Qiongzhou Strait to the north, Vietnam across theBeibu Bay to the west and Taiwanacross theSouth China Sea to the east. Its neighbors in the South China Sea include the Philippines, Brunei and Malaysia in the southeast and south. The jurisdiction of Hainan covers Hainan Island, theXisha (Paracel) Islands, theZhongsha (Macclesfield) Islands and the Nansha (Spratly) Islands as well as the surrounding maritime areas, making it the largest province in China in terms of area. Hainan covers a land area (mainly including Hainan Island and Xisha, Zhongsha and NanshaIslands) of 35,400 square km (that of Hainan Island reaching 33,900 square km) and has a maritime area of about 2 million square km. With the outline like an oval snow pear, Hainan Island has a total area of 33,900 square km (excluding the satellite islands), the second largest island only next to Taiwan Island. Qiongzhou Strait, located between Hainan Island and Leizhou Peninsula of Guangdong Province is about 18-nautical-mile wide; while Zengmu Ansha in Nansha Islands is the southernmost territory of China. Administrative Divisions By September 2015, Hainan Province had 27 cities and counties (districts), including four prefectural cities, five county-level cities, four counties, six autonomous counties, eight districts, and 21 townships, 175 towns and 22 sub-district offices (totaling 218). Cities at the prefectural level: Haikou, Sanya, Sansha and Danzhou Cities at the county level: Wuzhishan, Wenchang, Qionghai, Wanningand Dongfang Counties: Ding’an, Tunchang, Chengmai and Lingao Autonomous Counties: Baisha Li Autonomous County, Changjiang Li Autonomous County, Ledong Li Autonomous County, Lingshui Li Autonomous County, Baoting Li and Miao Autonomous County and Qiongzhong Li and Miao Autonomous County Population Calculated according to a sample survey on population changes, the birth rate of the province reached 14.57‰, death rate6.00‰, andnatural growth rate8.57‰in 2015.
    [Show full text]
  • Appendix 1: Rank of China's 338 Prefecture-Level Cities
    Appendix 1: Rank of China’s 338 Prefecture-Level Cities © The Author(s) 2018 149 Y. Zheng, K. Deng, State Failure and Distorted Urbanisation in Post-Mao’s China, 1993–2012, Palgrave Studies in Economic History, https://doi.org/10.1007/978-3-319-92168-6 150 First-tier cities (4) Beijing Shanghai Guangzhou Shenzhen First-tier cities-to-be (15) Chengdu Hangzhou Wuhan Nanjing Chongqing Tianjin Suzhou苏州 Appendix Rank 1: of China’s 338 Prefecture-Level Cities Xi’an Changsha Shenyang Qingdao Zhengzhou Dalian Dongguan Ningbo Second-tier cities (30) Xiamen Fuzhou福州 Wuxi Hefei Kunming Harbin Jinan Foshan Changchun Wenzhou Shijiazhuang Nanning Changzhou Quanzhou Nanchang Guiyang Taiyuan Jinhua Zhuhai Huizhou Xuzhou Yantai Jiaxing Nantong Urumqi Shaoxing Zhongshan Taizhou Lanzhou Haikou Third-tier cities (70) Weifang Baoding Zhenjiang Yangzhou Guilin Tangshan Sanya Huhehot Langfang Luoyang Weihai Yangcheng Linyi Jiangmen Taizhou Zhangzhou Handan Jining Wuhu Zibo Yinchuan Liuzhou Mianyang Zhanjiang Anshan Huzhou Shantou Nanping Ganzhou Daqing Yichang Baotou Xianyang Qinhuangdao Lianyungang Zhuzhou Putian Jilin Huai’an Zhaoqing Ningde Hengyang Dandong Lijiang Jieyang Sanming Zhoushan Xiaogan Qiqihar Jiujiang Longyan Cangzhou Fushun Xiangyang Shangrao Yingkou Bengbu Lishui Yueyang Qingyuan Jingzhou Taian Quzhou Panjin Dongying Nanyang Ma’anshan Nanchong Xining Yanbian prefecture Fourth-tier cities (90) Leshan Xiangtan Zunyi Suqian Xinxiang Xinyang Chuzhou Jinzhou Chaozhou Huanggang Kaifeng Deyang Dezhou Meizhou Ordos Xingtai Maoming Jingdezhen Shaoguan
    [Show full text]
  • China and the Law of the Sea: an Update
    IV China and the Law of the Sea: An Update Guifang Xue* Introduction his article examines the practice of the People's Republic of China with re­ Tspect to the 1982 United Nations Convention on the Law of the Sea {1982 LOS Convention),l Two principal areas will be assessed: China's efforts to accom­ modate the challenges of the Convention to its ocean domain as a coastal State and its major maritime legislation to implement the Convention regime. The analysis begins with a brief introduction of China's maritime features and a review of its basic stance toward the Convention. This is followed by a discussion of the major challenges China encountered while establishing its ocean domain based on the Convention regime. China's efforts in implementing the 1982 LOS Convention through national legislation are examined to assess the consistency of that statu­ tory framework with Convention requirements. Finally, conclusions are drawn from China's law of the sea practice. It is shown that China, fo r its part, has been accelerating domestic procedures with a view to enabling it to comply with Con­ vention requi rements. However, China's maritime practice has not been wholly consistent with Convention provisions. At the same time, China's oceans policy adjustments indicate a move away from its previous position as solely a coastal .. Direaor and Professor, Institute for the Law of the $ea, Ocean University of China . The views expressed herein are solely those of the author and do not necessarily reflect those of the government of the People's Republic of China Part of this article is built on the author's previous work entitled China and International Fisheries Law and Policy, published by Martinus NijhoffPublishers in 2005.
    [Show full text]
  • Island Promotes Small-Town Sojourns
    12 Hainan special Monday, August 31, 2015 CHINA DAILY Island promotes small-town sojourns What they say “Hainan Island is as good as more fa- mous resorts in Southeast Asia. I think Hainan is even better when talking about certain tourism resources. There are direct air links with Singapore, Thailand, South Korea, Japan, Russia, as well as Hong Kong, and Taiwan, and other plac- es. We also have convenient inbound procedures with a visa-free policy covering 26 countries.” Chen Tiejun, deputy director of the Hainan Provincial Commission of Tourism Development “Shishan town of Haikou has unique tourism resources featuring a culture based on the volcano. We will promote Shishan town and Haikou city tour- ism resources through the Internet, to achieve a leap forward in develop- ment.” Shi Xiangrong, chief planner with the Haikou Commission of Tourism The Dongzhaigang Mangrove Forest Reserve, in Haikou, Hainan province, is one of the province’s scenic highlights and the country’s largest mongrove forest Development reserve. LONG QUAN / FOR CHINA DAILY “Qionghai boasts simple folk customs he tropical island Hainan and good public order. These are the Along with its aims to be a top international tourism destination by 2020. two basic elements to develop village beach appeal, T One of the ways it intends to tourism. Tourists will naturally come do this is by popularizing the natural Hainan has charms of the small towns and villages if the local residents enjoy happy lives. scattered across the island. Qionghai is fi rst of all the happy home During the Ming and Qing Dynas- another side ties (1368-1911), many Chinese ven- of local residents and then a resort for tourists from tured into Southeast Asian countries home and abroad.” to its charm such as Malaysia, the Philippines and Indonesia to make a living.
    [Show full text]
  • How Environmental Awareness and Knowledge Affect Urban Residents
    sustainability Article How Environmental Awareness and Knowledge Affect Urban Residents’ Willingness to Participate in Rubber Plantation Ecological Restoration Programs: Evidence from Hainan, China Yu Gan, Tao Xu * , NengRui Xu, JiLv Xu and Dan Qiao Management School, Hainan University, Haikou 570228, China; [email protected] (Y.G.); [email protected] (N.X.); [email protected] (J.X.); [email protected] (D.Q.) * Correspondence: [email protected]; Tel.: +86-158-7765-5809 Abstract: The rapid expansion of rubber plantations in Asian countries has led to various envi- ronmental problems. Therefore, local governments are implementing rubber plantation ecological restoration (RPER) programs as an essential solution. However, such programs can be implemented only if residents are intensely involved. Based on a survey of 521 urban households in Hainan Province, China, this study investigates the effect of environmental awareness and knowledge on residents’ willingness to participate in RPER programs. We employ a double-hurdle (DH) model to estimate residents’ participation in two stages. First, we determine whether residents wish to participate or not (PN). Then, we measure residents’ degree of willingness to participate (DWP). The results show that residents’ environmental awareness has a significant positive effect on whether they wish to PN but has no impact on their DWP. By contrast, residents’ environmental knowledge has a significant positive effect on whether they wish to PN and their DWP. The moderating effect Citation: Gan, Y.; Xu, T.; Xu, N.; Xu, shows that residents’ environmental knowledge significantly weakens the positive effects of their J.; Qiao, D. How Environmental environmental awareness on whether they wish to PN.
    [Show full text]
  • Initial Exploration of a Protection System for Historical and Cultural Towns and Villages in Hainan, China
    Structural Studies, Repairs and Maintenance of Heritage Architecture XV 297 INITIAL EXPLORATION OF A PROTECTION SYSTEM FOR HISTORICAL AND CULTURAL TOWNS AND VILLAGES IN HAINAN, CHINA WANG ZHENYU Department of Architecture and Urban Planning, Huazhong University of Science and Technology, China ABSTRACT The long course of Chinese national history runs from a remote source. Since China has a vast territory, different regions formed a variety of regional cultures with different natural environments and era evolutions. Historical and cultural towns and villages not only exist as individual entities, but also as integrated urban and rural settlements and regional cultures. This paper presents the methodologies for the protection of historical towns and villages in the phase of systematic planning in Hainan Province. The research begin with looking at Hainan’s regional culture, adopting the research method of anthropology and regional heritage to retrace the culture of Hainan’s towns and villages, analysing the status quo, and on this basis, building a framework of Hainan historical towns and villages in promotion of its rational protection and development. Keywords: historical and cultural towns and villages, land use, Meso-scale space unit, non-motor- vehicle travel. 1 INTRODUCTION Hainan is a tropical island in southern China with beautiful scenery; its special natural environment has created an exotic culture. Today, most people see Hainan as an international scenic spot; however, less attention is paid to Hainan’s culture and traditions, which, to some extent, results in a lack of cultural construction. Historical and cultural villages and towns are important space carriers of Hainan culture; therefore, the construction of provincial-level historical and cultural towns and villages to protect the historical and cultural heritage of Hainan is essential.
    [Show full text]
  • Uyghur Dispossession, Culture Work and Terror Capitalism in a Chinese Global City Darren T. Byler a Dissertati
    Spirit Breaking: Uyghur Dispossession, Culture Work and Terror Capitalism in a Chinese Global City Darren T. Byler A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy University of Washington 2018 Reading Committee: Sasha Su-Ling Welland, Chair Ann Anagnost Stevan Harrell Danny Hoffman Program Authorized to Offer Degree: Anthropology ©Copyright 2018 Darren T. Byler University of Washington Abstract Spirit Breaking: Uyghur Dispossession, Culture Work and Terror Capitalism in a Chinese Global City Darren T. Byler Chair of the Supervisory Committee: Sasha Su-Ling Welland, Department of Gender, Women, and Sexuality Studies This study argues that Uyghurs, a Turkic-Muslim group in contemporary Northwest China, and the city of Ürümchi have become the object of what the study names “terror capitalism.” This argument is supported by evidence of both the way state-directed economic investment and security infrastructures (pass-book systems, webs of technological surveillance, urban cleansing processes and mass internment camps) have shaped self-representation among Uyghur migrants and Han settlers in the city. It analyzes these human engineering and urban planning projects and the way their effects are contested in new media, film, television, photography and literature. It finds that this form of capitalist production utilizes the discourse of terror to justify state investment in a wide array of policing and social engineering systems that employs millions of state security workers. The project also presents a theoretical model for understanding how Uyghurs use cultural production to both build and refuse the development of this new economic formation and accompanying forms of gendered, ethno-racial violence.
    [Show full text]
  • Download Article (PDF)
    International Conference on Mechatronics, Electronic, Industrial and Control Engineering (MEIC 2014) Application of fuzzy clustering analysis on the consumption level of residents by region in Hainan Chen Yijuan Zhang Chengyi* School of Mathematics and Statistics School of Mathematics and Statistics Hainan Normal University Hainan Normal University Haikou,China Haikou,China E-mail:[email protected] E-mail:[email protected] He Lifang School of Mathematics and Statistics Hainan Normal University Haikou,China E-mail:[email protected] Abstract—The previous literatures generally study miscellaneous goods,and services as indicators in consumption level of the single urban or rural residents in modeling the consumption structure, but few takes the Hainan.But there are few documents about the residents' social development degree into account. consumption level in Hainan province. According to the the We think that statistics analysis of overall spending data in range of year 2003-2012,this paper analyzes and behavior in both urban and rural eras would give better evaluates on consumption level of urban and rural residents understanding of the consumption structure. We therefore in Hainan from the whole perspective. We compare and employed weighted FCM algorithm to carry out the analyse the data of cities. The main conclusions are as analysis in this perspective. follows: It unveils that the urban and rural resident We categorized the factors that drive consumption consumption trend shows strong positive correlation to each behavior as essential factors, major factors and other respective local economic status. The education expense accounts for gradual increasing part of resident factors. We choose per capita GDP as the essential factor.
    [Show full text]
  • Rights and Responsibilities of Strait States
    chapter 2 Rights and Responsibilities of Strait States Jon M. Van Dyke* 1 Types of Straits1 The 1982 United Nations Law of the Sea Convention2 recognizes at least four distinct types of international straits: 1 Article 37 Straits, “which are used for international navigation between one part of the high seas or an exclusive economic zone and another part of the high seas or an exclusive economic zone.” 2 Article 35(c) Straits “in which passage is regulated in whole or in part by long-standing international conventions in force specifically relating to such straits.” A definitive list of such straits does not exist, but most com- mentators agree that the Baltic or Danish Straits, the Turkish Straits, and the Strait of Magellan are included in this category, and some add the Äland Strait to this list. These straits are governed by the applicable trea- ties, some of which are quite venerable, and thus have their own unique regimes that govern passage. 3 Article 38(1) Straits, where the right of transit passage does not apply “if the strait is formed by an island of a State bordering the strait and its mainland” and “if there exists seaward of the island a route through the high seas or through an exclusive economic zone of similar convenience with respect to navigational and hydrographical characteristics.” This provision is generally referred to as the Messina Strait Clause, “because it emerged from proposals put forward by Italy with implicit reference to the strait which separates the island of Sicily from the mainland.”3 It is * William S.
    [Show full text]
  • THE SAPPHIRES of PENGLAI, HAINAN ISLAND, CHINA by Wang Furui
    NOTES AND NEW TECHNIQUES THE SAPPHIRES OF PENGLAI, HAINAN ISLAND, CHINA By Wang Furui The sapphire deposit at Penglai, on Hainan Island, is potentially the largest in China. Gem-quality sap- phires, at least one as large as 35.5 ct, have been found in alluvial gravels approximately 2 km south- east of the city of Penglai. Gem-quality zircon and a few pieces,of, what might be considered ruby have also been recovered in the course of the geologic study of this area, which has not yet been commer- cially developed. The average size of the sapphires is 2-5 mm. Tfiey are similar in appearance and gem- ological properties to sapphires from Australia, Thai- land, and Kampuchea. Figure 1. This 2.60-ct faceted blue sapphire is from the deposit near Penglai, on Hainan 1s- Sapphire is one of the greatest potential gem land, People's Republic of China. resources in China today. To date, several major occurrences have been identified, including Ming- xi, Liuhe, and Jiangsu Province. However, the HISTORY deposit at Penglai, on Hainan Island in Guangdong Sapphires were first discovered by a farmer named Province, appears to be the most promising (figure Zhang Changde (figure 2)near the town of Penglai 1).Although the Penglai sapphire deposit is still in in the early 1960s. He found a beautiful stone on the exploration stage, local government and Bu- reau of Geology officials feel that it will develop into a major gem field. Already, gem dealers from ABOUT THE AUTHOR abroad are coming to Penglai to buy sapphires.
    [Show full text]
  • Measurement of Tidal and Residual Currents and Volume Transport Through the Qiongzhou Strait Using Coastal Acoustic Tomography
    Continental Shelf Research 108 (2015) 65–75 Contents lists available at ScienceDirect Continental Shelf Research journal homepage: www.elsevier.com/locate/csr Measurement of tidal and residual currents and volume transport through the Qiongzhou Strait using coastal acoustic tomography Xiao-Hua Zhu a,b,n, Ze-Nan Zhu b,a, Xinyu Guo a,c, Yun-Long Ma a, Xiaopeng Fan a, Menghong Dong a, Chuanzheng Zhang a a State Key Laboratory of Satellite Ocean Environment Dynamics, Second Institute of Oceanography, State Oceanic Administration, Hangzhou 310012, China b Ocean College, Zhejiang University, Hangzhou 310058, China c Center for Marine Environmental Study, Ehime University, 2-5 Bunkyo-cho, Matsuyama 790-8577, Japan article info abstract Article history: Quantifying the tidal current and volume transport through the Qiongzhou Strait (QS) is vital to un- Received 6 February 2015 derstanding the circulation in the northern South China Sea. To measure the tidal current in the strait, a Received in revised form 15-day coastal acoustic tomography (CAT) experiment was carried out at four acoustic stations in March 10 August 2015 2013. The horizontal distributions of the tidal currents were calculated by inverse analysis of CAT data. Accepted 18 August 2015 The diurnal tidal current constituents were found to dominate: the ratio of the amplitudes O , K , M , S , Available online 20 August 2015 1 1 2 2 and MSF was 1.00:0.60:0.47:0.21:0.11. The residual currents were found to flow westward in the northern Keywords: QS and turn southward in the southern QS. The residual current velocities were larger in the northern Tidal current area than in the southern area, with a maximum westward velocity of 12.4 cm sÀ1 in the northern QS.
    [Show full text]
  • Chen Hawii 0085A 10047.Pdf
    PROTO-ONG-BE A DISSERTATION SUBMITTED TO THE GRADUATE DIVISION OF THE UNIVERSITY OF HAWAIʻI AT MĀNOA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN LINGUISTICS DECEMBER 2018 By Yen-ling Chen Dissertation Committee: Lyle Campbell, Chairperson Weera Ostapirat Rory Turnbull Bradley McDonnell Shana Brown Keywords: Ong-Be, Reconstruction, Lingao, Hainan, Kra-Dai Copyright © 2018 by Yen-ling Chen ii 知之為知之，不知為不知，是知也。 “Real knowledge is to know the extent of one’s ignorance.” iii Acknowlegements First of all, I would like to acknowledge Dr. Lyle Campbell, the chair of my dissertation and the historical linguist and typologist in my department for his substantive comments. I am always amazed by his ability to ask mind-stimulating questions, and I thank him for allowing me to be part of the Endangered Languages Catalogue (ELCat) team. I feel thankful to Dr. Shana Brown for bringing historical studies on minorities in China to my attention, and for her support as the university representative on my committee. Special thanks go to Dr. Rory Turnbull for his constructive comments and for encouraging a diversity of point of views in his class, and to Dr. Bradley McDonnell for his helpful suggestions. I sincerely thank Dr. Weera Ostapirat for his time and patience in dealing with me and responding to all my questions, and for pointing me to the directions that I should be looking at. My reconstruction would not be as readable as it is today without his insightful feedback. I would like to express my gratitude to Dr. Alexis Michaud.
    [Show full text]