October 1st sees the official launch of China's Tourism Law, dealing a blow to Taiwan’s tourism industry

▲China’s Tourism Law officially takes effect on October 1st. Taiwanese domestic travel agencies estimate a short-term 30% drop in group tours from mainland visitors. (Photo / Reporter Yao Nan-hung)

Tourism Center / Comprehensive Report

As China’s “Golden Week” holiday begins, the newly revised Tourism Law has also officially commenced. In an effort to improve tourism quality, the law strictly forbids low-cost tour groups packed with shopping stops aimed at cutting expenses. Taiwan’s tourism industry, neighboring mainland China, is hit the hardest, with various tourism operators reacting very differently to the new law.

Tourism Bureau and travel agencies believe the long-term development of Taiwan’s tourism will benefit

The Tourism Bureau of the Ministry of Transportation stated that while the short-term impact on Taiwan’s tourism market seems negative—with fewer mainland tourists visiting—the long-term outlook shows that, under the new regulations, the overall quality of tour groups will gradually improve. Shopping activities will be significantly reduced, and tour prices will return to market rates, changing the previous vicious cycle of low-cost tours and cutthroat price competition that forced businesses to operate at a loss just to attract customers. This shift is seen as positive for the long-term development of cross-strait tourism.

Most Taiwanese travel agencies agree that although tour prices will rise by over 30% after the new law takes effect, and visitor numbers are expected to drop by 30–40% in the short term, the previous reliance of low-cost tours on shopping to subsidize accommodation and bus costs will gradually improve. The change will have minimal impact on well-managed travel agencies but will hit those with weaker systems much harder.

Taiwanese tour bus operators worry about triggering a price war among peers

Xu Haoyuan, National Chairman of the Republic of China Tourist Bus Federation, said that the Tourism Law has had the greatest impact on the tour bus industry. The sudden drop in visitors in the short term could leave over 10% of tour buses idle, making it difficult for operators to cover costs. To avoid this, price competition among peers will intensify—and once prices start to drop, there’s no turning back, severely affecting both large and small tour bus companies.

▲Coral jewelry is one of the most popular items purchased by mainland tourists in Taiwan. (Photo / Screenshot from Eastern News)

Popular shopping spots for mainland tourists shift business models

Travel agency operators stated that due to the ban on shopping stops, high-end shops favored by mainland visitors—such as those selling Hualien marble and Taiwanese coral—might consider moving into large hotel groups or setting up shop within popular tourist areas. Offering more discounts, they hope to attract mainland tourists to “come voluntarily,” thereby avoiding any legal issues.

Yao Daguang, Chairman of the Republic of China Travel Agents Association, also noted that there’s no need to overly scrutinize “shopping itineraries.” Some travelers enjoy shopping abroad and bringing back souvenirs. The new law regulates improper practices like commission-based shopping stops, but does not prevent tourists from enjoying shopping during their overseas trips. (Source: Central News Agency)