Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Car rental; Demand factors; Health & wellness tourism; Tourism flows domestic;
Tourism flows inbound; Tourism flows outbound; Tourism receipts and
expenditure; Tourist attractions; Transportation; Travel accommodation; Travel
retail
Executive summary
Government tourism goals fall short of the mark
In recent years the Taiwan government has adopted two major programs to boost
inbound tourism, with the focus being on higher arrival numbers. Challenge
2008, which proposed a goal of five million arrivals by the end of 2008, fell
significantly short of the mark. The tourism-focused Tour Taiwan Years:
2008-2009 plan, set a goal of 7% growth in annual arrival numbers, and this
too has so far failed to materialise, with growth for 2008 around half that
figure.
Price hike during first half of 2008 and fuel price leads to high inflation
A rise in fuel prices led to rising costs for all transport operators. Other
transport, particularly, airlines and bus/coach companies, have been affected
most. Combined with the economic slowdown and competition from Taiwan High
Speed Rail, these companies have been forced to close routes, and cut back on
existing services all the while heavily discounting their prices.
Opening up to Chinese tourists, far from expected traffic
Taiwan' s new government and President has promoted the economic benefits of
increased tourism from China as a means to alleviate the stagnant economy, as
well as stressed inbound arrival numbers from China would be high. Within
months of the new President taking office, Taiwan had opened itself to
tourists from China. Tourist numbers have fallen significantly short of
projections, leading to many disappointed businesses within the travel and
tourism industry.
High Speed Rail changes traveller preferences; takes a heavy toll on rivals
Since its launch in 2007, Taiwan High Speed Rail has driven demand through a
flexible fare structure, high speed travel and convenient station locations.
Impulse and same day return trips are common. High Speed Rail has both
stimulated demand in the travel and tourism industry while at the same time
caused the demise of many airline routes and pushed bus/coach operators to the
brink of closure. Far Eastern Air Transport Corp, a significant player in the
domestic airline market, experienced cash flow difficulties during this time.
The company closed down in May 2008.
Travel accommodation suffers from improvements in transportation
The speed and convenience of Taiwan High Speed Rail, which links the major
cities along Taiwan' s west coast, has deterred people from travelling to
locations such as the east coast and offshore islands. Same day return trips
have become more common, with accommodation operators gaining little benefit
from the increased traffic. A similar situation has arisen with Xueshan
Tunnel, which has cut travel times between Taipei and the east coast towns of
Hualien and Ilan. Many Taipei residents visit for day trips instead of staying
for a longer periods.
Tourism slowdown to continue
In the short term, Taiwan' s travel and tourism industry will continue to feel
the effects of both the global economic crisis and domestic economic downturn.
Companies can be expected to keep a close eye on efficiency of the services
and packages they offer. The overall market is expected to become much more
optimistic in the medium term.
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