MRT boom still a dream for business

Getting around Taipei's streets ranges from less than easy to death-defying. Traffic jams, cramped buses, crazy scooters and mad taxi drivers have made it a real hassle. Yet after the launch of the Hsintien line of Taipei's Mass Rapid Transit (MRT) system last week, traveling around the city might not be as annoying as it was.

The new line will reduce the time needed to commute between Hsintien and the Taipei Train Station from 40 minuets to 19 minutes and shorten the time between Hsintien and Tamshui from more than one hour to just 53 minutes. Apart from these visible benefits, the completion of the Hsintien line also creates some invisible ben-efits, such as increased productivity resulting from faster commuting, less spending on pollution and traffic control, and increased consumer spending.

If these invisible benefits were converted into dollar value, the Hsintien line is expected to create NT$1.98 billion worth of economic benefits, excluding ticket revenue, according to the Taipei Rapid Transit Corp (TRTC, 台北?j23捷1B股份|3--?膝q).

Tourism

The tourism industry will be one of the primary beneficiaries of the launch of the Hsintien line.

Taking the Taipei Zoo (台北市立動物園), which sits at the end of Mucha line, as example -- the number of its visitors jumped significantly following the completion of the Mucha line on March 1996.

The number of zoo visitors in August 1996 climbed to nearly 350,000, an increase of 118,000 from August 1995. Since then, the numbers have continued to stay around the 300,000 level. Even in the winter, the number of zoo visitors increased an average of 20,000 people compared to the years before the launch of the Mucha line.

"The Mucha line indeed helps our efforts to lure visitors," said an official at the Taipei Zoo.

"There is an increasing number of visitors taking the MRT to the zoo, especially students and young parents. That inspired us to come up with the idea of painting koalas on the outside of the train."

Not only tourist sites but also shops around recreation spots received a boost to their sales.

A store manager of the Ding Gua Gua Fried Chicken (3誑吤?/CHINESE>), near the entrance of the Hsin Peitou (新北投) station said its monthly sales increased by 20 to 30 percent after the MRT service to that station was launched. Peitou is a famous hot springs resort area on the outskirts of the Taipei.

"The most significant change is that before Peitou was a quiet place after dark, but now it has become a busy tourist place from day to night," said the manager.

The influx of tourists has also led to more and more fast food stores and restaurants opening up in Peitou.

"It's getting harder and harder to do business here. Although more visitors bring in more money, they also bring in more shops and competitors," said the manager.

A manager at a McDonald's in Hsin Peitou said the store's sales doubled after the launch of the MRT, but soon, the increased sales was shared by a new McDonald's that opened nearby.

The MRT has changed not only the business environment, but also the way people enjoy their leisure time. A manager at the Spring Resort Hotel (春?扆s店), a famous spa and restaurant in Peitou, said that more and more stylish customers prefer taking MRT to driving their own cars to the hotel.

"The MRT has caused changes in consumer behavior," said the manager. "It has changed the perception that only middle-and-low income families will take the MRT, as more and more high-class families now prefer the MRT."