Hotels and travel agencies last month saw their revenue pick up significantly from a month earlier, signaling that the negative effects of the COVID-19 pandemic are tapering off.
However, on an annual basis, sales still left much to be desired, as lingering border controls continue to curtail inbound and outbound travel.
Formosa International Hotels Corp (FIH, 晶華國際酒店集團) reported revenue of NT$381 million (US$12.88 million) for last month, a modest increase of 4.15 percent from May, after local consumers demonstrated more confidence and interest in domestic travel and social gatherings, the group said in a statement.
Business might gain more traction this month and next month, when domestic travelers have no choice but to spend their summer in Taiwan, with virus infections spiking abroad and authorities maintaining travel restrictions.
Hotels outside Taipei have by and large returned to normal operations, but occupancy rates remain low for facilities in Taipei, as people prefer to escape to suburban and rural destinations, FIH said.
FIH has sought to take advantage of the trend by launching twin-city packages that feature a two-night stay at luxury Regent Taipei (台北晶華酒店) and Silks Club in Kaohsiung (晶英國際行館) for NT$9,999.
FDC International Hotels Corp (雲品國際) reported NT$109 million in revenue, a 39 percent increase from a month earlier, backed by robust demand for its Fleur de Chine Hotel (雲品溫泉酒店) near Nantou County’s Sun Moon Lake (日月潭), it said in a statement.
Occupancy rates at the resort property reached 95 percent during the Dragon Boat Festival and reservations are approaching 90 percent for weekends in the summer, the company said.
Compared with a year earlier, sales last month plummeted 43.05 percent, the company said, but added that it expects to come out of the woods in the second half of the year as private consumption continues to recover.
Farglory Hotel (遠雄悅來大飯店) and affiliate Farglory Ocean Park (遠雄海洋公園) in Hualien County expect visitor numbers to rise 15 to 20 percent annually in the summer, aided by a rebound in domestic travel and the government’s stimulus measures.
The theme park is to grant free admission to students under the age of 19 and a discount of NT$699 for older students to attract visitors from across the nation, it said in a statement.
Farglory Hotel, part of Farglory Group (遠雄集團), saw its sales soar 44 percent from May.
Lion Travel Service Co (雄獅旅行社) reported that revenue increased 84.04 percent month-on-month to NT$117 million, its best performance since the height of the virus outbreak in March.
Revenue at Richmond International Travel and Tours (山富國際) spiked to NT$11.83 million, thanks partly to the growing popularity of camping experiences and other theme-travel packages.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to