The Kaohsiung Department of Tourism last week defended its estimate that a yellow duck art installation earlier this year generated about NT$14 billion (US$431.83 million) in profits.
The inflatable yellow ducks were set afloat in Kaohsiung’s Love River (愛河) Bay on Jan. 27 for 30 days as part of the Kaohsiung Wonderland festival.
It was the second time the artworks, created by Dutch artist Florentijn Hofman, visited Taiwan.
Photo courtesy of the Kaohsiung City Government
The department had estimated that the month-long installation drew about 9 million people and generated NT$14 billion in profits.
However, some Kaohsiung city councilors said the numbers were absurd.
The department said its estimate was not exaggerated, adding that it was conservative in its evaluations.
National tourism value equations are based on average expenses, not total sales, it said.
Based on a 2022 Tourism Administration report, an average visitor, excluding room and transportation expenses, spends NT$1,158 at a tourist spot, while those who need one night of accommodation spend NT$5,736 on average, meaning the total average is NT$2,316, it said.
Telecom statistics showed that the installation drew about 9 million travelers, the department said, adding that about 60 percent, or 5.4 million, of the visitors were residents of Kaohsiung and surrounding areas.
The department said it arrived at NT$14 billion by estimating that local visitors on average spent NT$1,158 per person, while others spent NT$2,316 per person.
If it had applied the Tourism Administration’s estimates for expenses, which were NT$5,316 for visitors coming from outside of Kaohsiung who do not spend the night in the area and NT$5,736 for those who stayed overnight, the expected profit margins would stand at NT$25 billion to NT26 billion, it said.
The department said that its concert-related income estimate was also conservative, basing its average profit margin at NT$4.5 billion on the lowest average room price of NT$3,000.
Kaohsiung hosted 117 concerts last year, drawing 1.39 million people, the department said.
It said it estimated that locals — half of the crowd — spent about NT$1,158 on average.
Including outsiders, the concerts generated total profit of about NT$4.78 billion, it said.
Based on telecom companies’ statistics, all scenic areas in Kaohsiung saw a 20 to 50 percent increase in visitors before and after the concerts, it said.
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