The nation’s economy will benefit significantly from cross-strait weekend charter flights and the influx of Chinese tourists, but the economic effects may come at a slower pace than expected, a local economist said yesterday.
“The positive effects might kick in around the latter half of 2009,” said Wea Chi-lin (魏啟林), a professor at the College of Management at National Taiwan University.
Addressing a seminar hosted by the Asia Pacific Industrial Analysis Association (APIAA), Wea said the weekend direct charter flights beginning today were not regular flights and would therefore be more symbolically significant than anything, but would lead to more substantial changes down the road.
“The significance is that Taiwan will join the logistical network of the Asia-Pacific region by offering international businesses direct access to explore the huge Chinese market,” Wea said.
He said that in the past Taiwan had been ignored by some international investors because of the lack of cross-strait links.
As of today, 36 cross-strait charter flights will operate each weekend.
But Wea said the full benefits of cross-strait air links would not materialize until regular scheduled flights were introduced.
“Arrangements for regular cross-strait flights are expected to be completed by the latter half of 2009 to bring real benefits to Taiwan’s economy,” said Wea, who is also the chairman of Paradigm Asset Management Co.
As for the influx of tourists from China, Wea said the number of tourists expected this year depended on further negotiations between Taiwan and China.
More than 700 Chinese tourists are expected to arrive today in 25 tour groups.
The government initially estimated that opening Taiwan to 3,000 tourists from China per day would boost economic growth by 0.48 percent this year.
However, China has since limited the number of tourists to 1,000 per day.
“But the increased number of tourists could cause problems that could drive up social costs significantly,” Wea said.
For example, new diseases could be introduced into Taiwan, he said.
“The government needs to develop precautionary measures to deal with these potential problems,” he said.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS