Taiwan’s hotels are taking an indirect hit from US tariff challenges, but hopefully the negative impact would prove short-lived, as the US and its trade partners iron out their differences, Formosa International Hotels Corp chairman Steven Pan (潘思亮) said yesterday.
Pan, whose company operates hotels under the brands Regent Taipei (台北晶華酒店), Silks Place (晶英酒店), Just Sleep (捷絲旅) and Wellspring by Silks (晶泉丰旅), made the comments at the grand opening of Wellspring by Silks Beitou (北投晶泉丰旅).
“Tourism, while driven by domestic demand, is closely tied to the broader economy,” Pan said. “If the economy flounders, the hospitality industry cannot remain unaffected.”
Photo: CNA
Concerns about a potential economic downturn are mounting, as global markets reel from escalating tariff tensions linked to US changes in trade policies, he said.
The global economic landscape looks murky and fluid at present, but with US financial markets showing signs of stabilization, the worst could soon be over, he said.
Pan called the coming three months “critical” after US President Donald Trump announced a 90-day moratorium on “reciprocal” tariffs.
Failure by the US and its trade partners to achieve clarity during this period could push the global economy into a slump, with far-reaching effects on industries focused on manufacturing, as well as tourism and services, he said.
While manufacturers would bear the brunt of tariffs, service-oriented industries would also suffer due to frail consumer confidence, Pan said.
The global economy has long been underpinned by US consumer demand, but the burden might shift to other countries, in light of Trump’s drastic policy changes, he said.
China, where Pan has business interests through the Regent brand, is most vulnerable to tariff-related shocks, as the US has more than doubled its tariff burden, he said.
The impact on China would be very, very significant, he added.
By contrast, Taiwan could turn the ongoing turbulence into an opportunity by repositioning itself within global supply chains, he said.
“Taiwan now plays a role in tech similar to what Hong Kong once was in finance,” he said, suggesting that the country could benefit from closer alignment with US technology moguls.
If Taiwan could navigate the uncertainty with prowess, it might emerge more integrated and influential in the global economy, Pan said.
Still, Pan has a positive outlook for Taiwan’s tourism sector, aided by the country’s rich tourism resources and steady travel demand.
Wellspring by Silks Beitou (北投晶泉丰旅), for instance, reported an average occupancy rate of 75 percent after its soft opening, higher than an estimated 60 percent, he said.
However, Pan voiced grave concern over a persistent labor shortage in the hospitality industry, describing the issue as a “national security-level” crisis.
He urged the government to develop effective workforce policies to support the sector’s sustainable growth.
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
UNCERTAINTIES: The world’s biggest chip packager and tester is closely monitoring the US’ tariff policy before making any capacity adjustments, a company official said ASE Technology Holding Inc (日月光投控), the world’s biggest chip packager and tester, yesterday said it is cautiously evaluating new advanced packaging capacity expansion in the US in response to customers’ requests amid uncertainties about the US’ tariff policy. Compared with its semiconductor peers, ASE has been relatively prudent about building new capacity in the US. However, the company is adjusting its global manufacturing footprint expansion after US President Donald Trump announced “reciprocal” tariffs in April, and new import duties targeting semiconductors and other items that are vital to national security. ASE subsidiary Siliconware Precision Industries Co (SPIL, 矽品精密) is participating in Nvidia
RSS