The Tourism Bureau’s travel subsidy programs yesterday drew mixed reactions from lawmakers, who said that they offer only short-term boosts to the domestic tourism industry.
The Legislative Yuan’s Transportation Committee asked the bureau and the Ministry of Transportation and Communications to brief lawmakers about the effectiveness of the winter travel subsidy program, which ended in January.
The first phase of the program, which was designed to boost tourism in Kaohsiung and Yilan, Hualien, Taitung and Pingtung counties, subsidized costs for 1.26 million independent and tour group travelers.
Photo: Huang Yao-cheng, Taipei Times
The second phase subsidized 1.83 million people traveling to any of the nation’s 22 cities and counties.
The program cost about NT$2.1 billion (US$68.07 million) and helped generate about NT$11.5 billion, the bureau said.
The briefing came after the bureau on Tuesday announced a spring travel subsidy program, for which it has allocated NT$860 million.
The winter program was a success when considering the bigger picture, Minister of Transportation and Communications Lin Chia-lung (林佳龍) said, adding that the bureau would solicit assistance from local governments in speeding up subsidy application reviews and reimbursements following complaints from travel agents.
Spring subsidies would not only serve as stimulants in the off-season, but also tackle the sources of the problems facing the domestic tourism sector, Lin said, adding that government agencies would integrate their resources to promote tourist attractions.
Democratic Progressive Party (DPP) Legislator Chen Ou-po (陳歐珀) said that he supports the subsidy program.
Tourism revenue only accounted for 4.45 percent of GDP last year, lower than the global average of 10.1 percent, Chen said.
Meanwhile, 16.64 million Taiwanese traveled overseas last year, 70 percent of the nation’s total population, he said, adding that the number of outbound tourists would be about the same as the total population by 2025 if the trend continues.
Overseas travel expenses topped NT$54.77 billion last year, but tourism revenue brought by inbound tourists totaled only NT$37.49 billion, which should serve as a warning, Chen said.
DPP legislators Lin Chun-hsien (林俊憲) and Yeh Yi-jin (葉宜津) questioned whether the subsidy program would have any long-term effects on the tourism industry.
Rather than giving the same amount to all cities and counties, the bureau should create competition among them by evaluating their performances before granting any subsidies, they said.
It would be “pathetic” if giving out travel subsidies becomes the bureau’s only job, Yeh said.
The bureau should gauge the economic benefits brought by travel subsidies and make them public, while local governments receiving subsidies should also improve scenic spots and offer innovative tours, or else local government officials and travelers would become numb to the constant provision of subsidies, she said.
The bureau should also clarify that it would subsidize people who book rooms at star-rated hotels, as it is encouraging more hotels to participate in its hotel reviews, Yeh added.
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