Tourism sector sees lifesaver in visitors from China

Construction segment

An average occupancy rate exceeding 75 percent would require the city to build more hotels to accommodate the rising demand, which would benefit not only the hoteliers but the construction sector, said Chuang, who is also president of Leofoo Development Co (六福開發), which operates the Westin Taipei, the Leofoo Hotel (六福客棧) and the Leofoo Village (六福村) amusement park.

Betting on the potential business boom, Chuang said he is planning to build more hotels at sites popular among Chinese tourists, such as Sun Moon Lake (日月潭) and Alishan (阿里山).

But the world's tallest skyscraper, Taipei 101, could be the biggest beneficiary of the relaxed policy as Chinese tourists are said to be eager to visit the landmark.

The Observatory, located on the 89th floor of the Taipei 101 building, at a height of 382.2m, currently attracts an average of 5,000 visitors per day, Taipei 101 Mall's public relations manager Shieh Wen (謝文) said.

With an admission fee of NT$350 for each adult and that of NT$300 per person for groups with more than 20 visitors, Shieh said that the Observatory could rake in extra sales of over NT$100 million annually from the Chinese visitors. Accordingly, the Taipei 101 Mall is expected to enjoy 20 percent growth in annual sales, Shieh added.

Airlines shrug

The nation's airlines, however, do not seem excited about the extra business, as additional 1,000 Chinese visitors per day is a relatively small base compared to the nearly 20,000 travelers who use services between Taipei and Hong Kong or Macao, according to estimates from both EVA Airways Corp (長榮) and China Airlines (華航).

"The opening-up of direct links is the real boost we want," EVA's spokesman Nieh Kuo-wei (聶國維) said.

Despite all the optimism, another economist was doubtful that the positive effects would emerge quickly and smoothly, citing uncertainties such as the industry's overly bullish expectations and possible policy flip-flops.

The long-term separation of the two sides of the Strait makes Chinese visitors curious to come to Taiwan, but their excitement may fade if they feel the actual scenery is not as appealing as imagined, said Cheng Cheng-mount (鄭貞茂), chief economist of Citigroup in Taipei.

The risk of Chinese remaining in the country illegally may rise along with increasing numbers of visitors, which could result in the policy being tightened in the future, Cheng said.

The government should think about relaxation of rules for visits of Chinese professionals to Taiwan, as they are more stable and traceable, and opening up in this area is more urgently needed by multinational companies, he added.