Wed, Apr 16, 2025 page9

• Hotel operator cautious amid US tariff challenges

  DOWNTURN? While US tariffs would directly affect manufacturing, the service industry, including hotels, would not be unaffected if the world economy slumps, Steven Pan said

  • By Crystal Hsu / Staff reporter
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  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.”

  

  Formosa International Hotels Corp chairman Steven Pan attends a news conference in Taipei yesterday.

  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.
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