Restrictions on Chinese tourists... He predicts several more hotels will close before year’s end

Photo shows the consumption of Chinese tourists at the Liuhe Tourist Night Market in Kaohsiung. (Photo by Wu Jiangquan)

Global tourism trends are changing—75% of Taiwanese travelers now opt for independent travel, and traditional package tours offered by travel agencies are no longer as popular. Consumers are placing greater value on experiential and in-depth travel. This year, the Tourism Bureau under the Ministry of Transportation and Communications is promoting transformation and source-market expansion initiatives, acting as a matchmaker to encourage partnerships between travel agencies, e-commerce platforms, and other industries. The goal is to enhance the quality of travel experiences and attract more tourists to Taiwan.

With the decline in Chinese tourists, Taiwan’s tourism industry has become a “suffering” sector. Xiao Borren, chairman of the General Chamber of Commerce of Travel Agents Associations, bluntly stated that after the drop in Chinese visitors, the southern tourism industry, in particular, is in deep distress. While “you can’t put all your eggs in one basket,” he called on the government to pursue a dual-track approach in advancing its New Southbound Policy—striving to also attract more Chinese tourists to Taiwan in order to grow the overall tourism pie.

Zhang Rongnan, chairman of the General Chamber of Commerce of Hotels, operates lodging businesses in Hengchun and has been acutely aware of the sharp decline in Chinese tourists visiting Kenting. He observed that nowadays, Chinese tourists arrive in Kenting in the morning but head to Kaohsiung or eastern Taiwan (Hualien and Taitung) by the afternoon, making Hengchun feel almost like a ghost town. While he acknowledges the government’s efforts to promote new tourism policies, he also worries that several hotels may go bankrupt before the end of the year.

To address this, the Tourism Bureau is helping the tourism industry tap into new resources, with a focus on developing localized, innovative forms of travel. Tsai Ming-ling, executive secretary of the Tourism Bureau, pointed out that around 10 million tourists visit Taiwan each year, with approximately 75% traveling independently, while the proportion of Chinese tour groups has also declined—with nearly half of Chinese visitors now choosing independent travel. Traditional tour itineraries often cover many sites superficially, whereas in-depth, localized travel experiences that highlight authenticity are now in vogue.

She noted that the Tourism Bureau has divided Taiwan into seven regions—including North, Yilan & Keelung, and Kaohsiung-Pingtung—and is integrating upstream, midstream, and downstream players in the travel industry. It aims to innovate and disrupt conventional travel agency models while collaborating with new e-commerce platforms. Additionally, the initiative brings together 24 types of sectors including cultural creativity, tourist factories, and local delicacies, launching a “team effort” to attract international visitors. In late October, the bureau plans to hold four cross-domain, cross-border, and cross-industry industry matchmaking events across Taiwan, hoping to give a boost to Taiwan’s tourism sector.