Marine spatial planning (MSP) represents a critical tool for the worldwide design of coastal development and protection strategies. China, as one of the pioneers in establishing comprehensive MSP policies, has created a well-developed marine planning structure—known as the “multi-rule-in-one"—with Marine Functional Zoning (MFZ) serving as a cornerstone for the country's coastal economic and environmental development. Despite its significance, limited studies have presented the practical application of MSP/MFZ policies upon tourism exploitation in coastal regions. This paper fills this research gap by thoroughly examining China's marine planning structure, the implementation of provincial MFZ policy, and the operational mechanisms of these strategies. The analysis focuses on the Xiasha Beach Resort, a case study exemplifying the coordinated efforts required among governments, scientists, and the public for the successful implementation of MFZ policy. Findings from the Xiasha Beach Resort highlight the importance of robust tourist market management, a shift from hard seawall structures towards more eco-friendly alternatives, and a high degree of collaboration among key stakeholders. Furthermore, the study emphasizes the importance of ecosystem-based restoration technology that maintains the integrity of the beach-dune system, fosters diverse vegetation, and encourages adaptive measures such as environmental capacity control. The sustainability of the MSP approach hinges on wide and diverse public participation, as national MSP policies foster trust, credit, and feedback from local citizens, promoting necessary policy adjustments. In conclusion, this study offers valuable insights for domestic and international regions seeking to harmonize MSP operations to achieve high-quality coastal economic development and environmental protection targets.