China Fosun dials up tourism push with $1.74 billion Atlantis Sanya luxury resort

By Shu Zhang and Bobby Yip

SANYA, China (Reuters) - China's Fosun International Ltd on Saturday launched its Atlantis Sanya luxury resort in a $1.74 billion bet that the sail-shaped development will become an icon in Hainan - China's Hawaii - and a beacon to tourists domestic and abroad.

The conglomerate's 11 billion yuan ($1.74 billion) investment in China's southernmost province is in line with the central government's desire to further boost tourism in Hainan, already popular among Chinese holidaymakers.

Fosun, co-founded by Chinese billionaire Guo Guangchang, has been one of the country's most acquisitive overseas dealmakers.

But like peers including Dalian Wanda Group and HNA Group, Fosun - China's largest privately held conglomerate - has faced increased scrutiny by Beijing for debt-fuelled, big-ticket foreign deals and is now pursuing a development path more closely aligned with Beijing's priorities.

Tourism is viewed as key to China's shift towards a more consumption-driven model of economic growth from an investment and export-led one. Beijing aims to raise the country's tourism market revenue to 7 trillion yuan by 2020, from 5.3 trillion yuan last year.

Located on Haitang Bay, one of the major bays in Sanya and known for its 22-kilometre strip of white, sandy beaches, Atlantis Sanya was inspired by Dubai's Atlantis, The Palm. The integrated resort offers hotel suites with views of underwater marine life, as well as a water park and a shopping mall.

"Atlantis Sanya is not only a forerunner of the supply-side reform of the tourism industry, but is also becoming a new landmark of Hainan tourism," Xu Zhenling, vice mayor of Sanya said at a news conference on Saturday ahead of the resort's grand opening scheduled for the evening.

She said the resort will also raise Hainan's profile overseas, as the island province - China's largest economic development zone - seeks to further open up its economy and focus on developing modern tourism, services and high-technology industries.

($1 = 6.3325 Chinese yuan renminbi)

(Reporting by Shu Zhang and Bobby Yip in SANYA; Writing by Ryan Woo; Editing by Kenneth Maxwell)