The Ministry of Transportation and Communications (MOTC) is seeking more funding from the government’s third stimulus package, so that it could continue its subsidy-program for domestic travelers through the fall, MOTC Minister Lin Chia-lung (林佳龍) said yesterday.
Though the funding paid to the ministry — a total of NT$3.9 billion (US$ 132.14 million) — was supposed to cover the program expenses until the end of October, the Tourism Bureau only has NT$300 million left and might not be able to pay further travel subsidies after the first half of next month, the bureau said.
The bureau proposed three possible solutions to resolve the shortfall: requesting more funding from the Executive Yuan, reducing the subsidies paid to eligible travelers or terminating the program early.
Photo: George Tsorng, Taipei Times
Lin said that the MOTC would urge lawmakers to include further funding in the ministry’s proposed budget for the third stimulus package, which is to be discussed in the upcoming legislative session that starts next month.
The program’s subsidies were warmly received by the public and have boosted tourism, particularly to Hualien and Taitung counties and to the outlying islands, Lin said, adding that the Triple Stimulus Vouchers have also contributed to a surge in tourism.
“We hope that the domestic tour market will continue to prosper after the summer season is over. After all, the nation’s borders are likely to remain closed throughout the year, and we need as much funding as possible to support the market,” Lin said, adding that the ministry has allocated NT$1.6 billion from its own operating budget to fund the program.
Asked why the ministry had not asked for more funds when the program’s budget was debated in June, Lin said that the Central Epidemic Command Center had lifted domestic travel restrictions earlier than the ministry expected, on June 7.
While the ministry has paid travel subsidies since July 1, it had initially planned to do so starting next month.
“We thought that tourism would serve as a ‘locomotive’ that pulls the economy forward. However, at the time it was unclear how the global
COVID-19 situation would play out, and the tourism industry needed a stimulus,” he said.
On the possibility that the government might terminate the program early, Travel Agent Association of Taiwan chairman Hsiao Po-jen (蕭博仁) said that the government should not “shelve umbrellas on rainy days,” as domestic tourism is central to ensuring that the nation’s economy remains stable.
“The program has not just encouraged people to travel domestically, but also helped travel service operators survive and generated tax revenue for the government,” he said.
Ending the program early would lead to disputes between tourists and travel agents, endanger businesses and could lead to the unemployment of many ground-level workers in the tourism sector, Hsiao said.
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