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Developing 'co-opetitive' tourism

Travel agencies on both sides of the Taiwan Strait have been preparing for the cross-strait tourist market. The China National Tourism Administration has also prepared policies pertaining to Chinese tourists traveling to Taiwan.

In the past, Taiwan’s cross-strait policies were focused on restricting investments in China because of national security concerns. National security and economic openness are, in fact, not a zero-sum game. They can also exist in a “co-opetitive” relationship centered on the implementation of public policies, as exemplified by the urgency to formulate tourism policy.

The remedy for the economies in Hong Kong and Macao was the influx of Chinese tourists. If Taiwan were to open up to Chinese tourism, Hong Kong and Macao could provide some “policy inspiration” for Taiwan. Chinese travel agencies in Beijing, Shanghai and Guangzhou are promoting various package tours to Taiwan. It can be expected that the number of Chinese tourist groups traveling to Taiwan will increase after May 20. Is Taiwan’s infrastructure ready to cope with the influx? Are the related tourism and service industries ready?

The government has long put priority on the manufacturing industries such as electronics, information technology, software development and biotechnology industries and actively supported and assisted small and medium-sized enterprises, sparing no effort in establishing science and industrial parks. In doing so, the government has ignored the development of the service industry, leaving Taiwan far behind international standards and also less competitive than the service industry in Southeast Asian countries such as Thailand and Malaysia. The government has launched several plans to boost tourism, but with limited success.

The output value of the tourism industry among Organization for Economic Cooperation and Development (OECD) member countries always makes up a large proportion of GDP, which shows the importance developed countries place on the service industry.

Although Taiwan meets OECD membership requirements, its long-term disregard for the service industry has nearly caused it to stagnate and the output value is only at the level of developing countries. Therefore, if the new administration can properly plan for and support Taiwan’s tourism industry, it will create an opportunity to realize direct transport links.

Taiwan doesn’t possess many historical sites and has a limited number of scenic spots. After adding high commodity prices, many Western tourists would rather travel to Southeast Asian countries. However, Taiwan and China share a cultural background, food, and language and similar living habits. The long-standing confrontation and separation between Taiwan and China has created curiosity and maybe envy among Chinese people, just as some Taiwanese bear historical feelings toward China.

Before opening Taiwan to Chinese tourism, we should first be concerned about the possibility that Taiwan’s tourism infrastructure may be insufficient, rather than worrying that Chinese tourists may not come. After all, Taiwan has a land area of only 36,000km2 and to bear the increasing number of Chinese tourists, the government must plan for hotels, tour buses, roads, parking lots, shopping centers and toilets.

In particular, commercial credibility must be maintained between Taiwan’s tourism industry and Chinese tourists. Unnecessary misunderstandings may not only damage the reputation of Taiwan as a tourist destination, but also disappoint Chinese people regarding Taiwan’s democracy and even make them suspicious of it.

After all, cross-strait relations have changed from hostile to competitive in recent years, especially in terms of national systems. The quality of Taiwan’s tourism industry is an important benchmark for its democratic and political system.

To safeguard the image of Taiwan’s system and to promote the sustainable development of the tourism industry, the Ministry of Transportation and Communications should immediately review and evaluate the nation’s tourism infrastructure and management. When necessary, the government should propose quotas and quality controls, increase information and price transparency, open complaint channels and punish unethical commercial behavior to consolidate interest and confidence in Taiwan among the Chinese.

The quality of Taiwan’s tourism industry is related to the quality of its democracy and political system. We should lay down public policies aimed at sharing Taiwan’s democratic achievement with the Chinese people.



Liao Kun-jung is a political science professor and dean of the Department of Political Science at National Chung Cheng University.

Translated by Ted Yang
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