Tourism revenue from Chinese visitors over the past months have been far below the expectations of the Tourism Bureau, with the number of visitors and their level of spending in Taiwan falling short of estimates, a survey conducted by the Institute for Business Development (IBD, 商業發展研究院) said.
IBD vice president Tu Tze-chen (杜紫宸) said at a press briefing yesterday that based on the monthly average of between 70,000 and 80,000 arrivals from China, it was estimated that the total for this year would be about 900,000, way below the Tourism Bureau’s forecast of 1.6 million visitors.
Through interviews with 28 experienced tour guides and the observations of IBD researchers who posed as tour guides to collect information on tourists’ consumption behavior, the institute drafted an analysis on the benefits to the tourism sector from the opening to Chinese visitors.
The report indicates that, to the disappointment of the travel sector, Chinese tourists each spend an average of NT$35,244 for an eight-day, seven-night stay in Taiwan, which means that revenues from Chinese tourists this year may not reach the Tourism Bureau’s projected NT$30 billion, which is based on an estimated average spending figure of NT$62,601 per person.
IBD researcher Lee Chu-yuan (李竺姮) said the average expenditure of Chinese tourists was far less than expected, partly because of cutthroat competition among travel agencies.
With the itineraries of low-budget tour groups mostly confined to night markets and cursory tours of scenic spots such as Alishan and Sun Moon Lake, Chinese tourists have hardly had the opportunity to appreciate Taiwan’s attractions and culture and therefore might not come again, Lee said.
The IBD analysis shows that 70 percent of the Chinese tourists to Taiwan over the past few months were people from rural areas, over 40 years of age, looking forward to fulfilling a dream of “going to Taiwan,” and expecting intensive tours during which they would see a wide variety of places.
Tu said Taiwan’s tourism sector should help Chinese tourists develop an appreciation for delicacies like Din Tai Fung (鼎泰豐) dumplings and for music stores, coffee shops, wineries and the tea houses of the Eslite (誠品) bookstore chain.
He said that both the government and the tourism sector should target white-collar workers and young people in China and design theme tours of special interest to them.
As many Taiwanese corporations are now preparing to hold year-end parties for their employees, Tu said, corporations with branches in China should consider inviting their Chinese employees to attend the celebrations in Taiwan. Such a gesture of company unity can also serve as a type of tourism promotion, he said.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a