Abstract: In 2010,Hainan Island was set as an International Tourism Island.This paper applied the panel data of 31 provinces from 1999 to 2015,used the synthetic control method to investigate the impact of the implementation of the International Tourism Island policy on housing price in Hainan from the theoretical and demonstrational aspects,and explored into the sustainability of the impact of policy on Hainan’s housing price.The results show:(1) the implementation of the international tourism island policy indeed raised the price of commercial housing in Hainan in the short run;however looking from the long run aspect,the price pushing effect of it has been restrained to a certain extent because of the implementation of real estate regulation and control policies at both province and national levels;(2) the result didn’t change significantly when using the average price of residential housing as a robustness test;(3) it was found that the price pushing effect of the policy was robust when using the placebo test a step further.In order to determine the significance of this result,this paper calculated its possibility by applying the permutation test method and found that the result was significant at the level of 5% minus.With the result of the calculation of the effect of the policy from the real estate market perspective,the authors suggested careful cautions should be given to reckless rise of housing price to ensure a healthy development of tourism in Hainan in the future.

Key words: Hainan, international tourism island, housing price, SCM