Based upon a case study of Silver Beach coastal resort of Beihai, Guangxi Zhuang Autonomous Region, this article examines the rise and fall of Chinese coastal tourist resort development since the 1980s. It explores the causes for and responses to the decline of Chinese coastal resorts. The data were collected through in-depth interviews with twelve local key information providers, and secondary information sources such as government archives, survey reports, and resort plans. It was found that the rise and fall of Chinese coastal resorts in the last three decades is closely linked to the transitional reform from a central planned economy to a market economy. Three stages of coastal tourism development were identified in a sequence of rapid growth, decline and redevelopment. It was government financial funds and high local government involvement that promoted the rapid expansion of coastal resorts during the 1980s. However, coastal resort decline occurred when transitional reform was intensified and deflationary policy executed after 1992. Institutional failure is found to be the main reason of Chinese coastal resorts decline since the mid-1990s. The government-dominated pattern could not be sustained and should be restructured in forthcoming coastal tourism development in China. Revival strategies should emphasize enhancing market-oriented reform in the declining resorts on both supply and demand sides. Based on a case study of Silver Beach coastal resort of Beihai, Guangxi Zhuang Autonomous Region, this article examines the rise and fall of Chinese coastal tourist resort development since the 1980s. It explores the causes for and responses to the decline of Chinese coastal resorts. The data were collected through in-depth interviews with twelve local key information providers, and secondary information sources such as government archives, survey reports, and resort plans. It was found that the rise and fall of Chinese coastal resorts in the last three decades is closely linked to the transitional reform from a central planned economy to a market economy. Three stages of coastal tourism development identified in a sequence of rapid growth, decline and redevelopment. It was government financial funds and high local government involvement that promoted the rapid expansion. of coastal resorts during the 1980s. However, coastal resorts decline occurred when transitional reform was in tensified and deflationary policy executed after 1992. Institutional failure is found to be the main reason of Chinese coastal resorts decline since the mid-1990s. The government-dominated pattern could not be sustained and should be restructured in forthcoming coastal tourism development in China. Revival strategies should emphasize enhancing market-oriented reform in the declining resorts on both supply and demand sides.