Is Taiwan only chasing the number of Chinese tourists? Tourism Bureau: Korean visitors grew 23.34% this year

▲The Tourism Bureau issued a statement today regarding the current state of Chinese tourists visiting Taiwan and Taiwan’s tourism industry. (Photo / Illustration, taken by reporter Chen Rui-zhong)

By reporter Chen Rui-zhong / Comprehensive report

In response to recent comments by a legislator that Taiwan’s tourism development is overly reliant on Chinese tourists, thereby affecting the willingness of visitors from other countries and domestic travelers to explore Taiwan, the Tourism Bureau under the Ministry of Transportation and Communications responded today (October 22).

The bureau noted that Taiwan’s major inbound markets and domestic travel market are growing simultaneously, without being squeezed out by Chinese tourists. Since 2011, Taiwan has been a tourism surplus country, and the policy for Chinese tourists has shifted to focusing on both quality and quantity, rather than just the number of visitors.

Explanation from the Tourism Bureau:
I. Major inbound markets and the domestic travel market are growing simultaneously, without being squeezed out by Chinese tourists
(1) In 2014, all major inbound markets showed double-digit growth, with Korea showing the highest increase; from January to September 2015, Taiwan welcomed 7.55 million visitors, a 4.11% increase, with Korea showing the highest growth at 23.34%, followed by Hong Kong and Macau (6.85%) and mainland China (5.16%). It is not solely focused on the Chinese tourist market.

(2) Additionally, in 2014, the domestic travel market reached 156.2 million trips, a 9.52% increase, and domestic tourism revenue reached NT$309.2 billion, also rising significantly by 13.63%. Domestic travel has become an integral part of people’s lives, and the number of trips relative to the population has reached saturation, making it difficult to achieve high growth. In recent years, through initiatives such as regional tourism flagship projects, competitive international attraction hubs, and international spotlight programs promoted by the bureau, along with the development of services like Taiwan Tourist Shuttle and Taiwan Sightseeing Bus tailored for independent travelers seeking immersive experiences, stable growth in the domestic travel market has been achieved.

(3) Regarding media reports that in 2014, 11.84 million Taiwanese traveled abroad compared to 9.91 million inbound visitors, resulting in a surplus of 1.93 million and suggesting that Taiwanese prefer to travel overseas, the bureau clarified that since 2008, it has actively promoted the “Tourism Excellence and Leadership Program,” centered on the core principles of “developing international tourism, enhancing the quality of domestic tourism, and increasing tourism foreign exchange earnings.” This has successfully expanded Taiwan’s tourism market scale, with steady development in the domestic travel market. Over the past seven years, the deficit in inbound and outbound travelers has significantly improved.

II. Taiwan has been a tourism surplus country since 2011
(1) Regarding the analysis of tourism economic benefits, based on the global analysis practices of the World Tourism Organization (UNWTO), using the “Tourism Foreign Exchange Earnings” estimated from the Tourism Bureau’s “Survey on Inbound Tourists’ Consumption and Travel Trends” and the “Travel Foreign Exchange Expenditure” statistics provided by the Central Bank, in 2014, tourism foreign exchange earnings were NT$433.8 billion, while expenditures were NT$425.1 billion, resulting in a surplus of NT$18.7 billion.

(2) Regarding media reports that calculated the tourism surplus as NT$159.6 billion by subtracting total outbound spending from inbound tourism earnings, it should be noted that outbound spending includes international airfare (approximately 1/2 to 1/3 of total travel costs), whereas inbound tourism earnings do not include the cost of airfare to Taiwan. The calculation bases are inconsistent, and direct comparison of these figures is not appropriate.

(3) Additionally, according to the Taiwan Tourism Satellite Account commissioned by the bureau, in 2012, outbound travel by Taiwanese contributed approximately NT$150 billion to the domestic economy, with the largest contributions from national airlines, domestic travel agencies, and retail sectors such as souvenirs, luggage, and cameras purchased before traveling. This indicates that the growth in outbound travel still benefits the domestic economy.

III. Chinese tourist policy has shifted to focus on both quality and quantity, not just visitor numbers
(1) To manage domestic tourism quality, the daily quota for Chinese tour groups was not increased in 2015
From January to September 2015, the number of Chinese tourists visiting Taiwan increased by 5.16% compared to the same period last year. Although this is the lowest growth rate since the opening of Chinese tourist visits in 2008, it is mainly because in March to May 2014, the quota for Chinese tour groups was flexibly adjusted from 5,000 to 8,000 per day, but in 2015, to maintain tourism quality, no flexible adjustments were made. This shows that the policy is not solely focused on increasing visitor numbers.

(2) The growth in independent Chinese travelers can expand the range of industries benefiting from Chinese tourism
1. Chinese tour groups are the largest source of tourism income for Taiwan, but their spending is highly concentrated on shopping (64.7%); whereas independent travelers spend more on in-hotel and out-of-hotel dining compared to group tourists, with shopping accounting for only 35.2%.

2. Since 2013, the growth rate of independent Chinese travelers has increased significantly, while the number of group tourists has decreased relatively. The growth in non-group travelers can broaden the range of industries benefiting from Chinese tourism, avoid monopolization by all-inclusive tour operators, and improve tourism quality and the likelihood of repeat visits.

(3) The primary goal for the Chinese market is to enhance tourism quality
The market strategy for mainland China will pursue dual tracks of “quality improvement” and “quantity growth,” with a primary focus on enhancing tourism quality and eliminating the unhealthy practice of offsetting tour costs with shopping. This year, in addition to continuing to promote high-quality itinerary policies, the bureau has actively implemented special quota policies. Through inter-agency collaboration, it is packaging and marketing products with unique Taiwanese features and potential, such as tribal-themed tours developed in cooperation with the Council of Indigenous Peoples. Other key areas include island tourism, premium tour groups, and incentive travel. In the future, the bureau will also continue to invite industry players to visit Taiwan for inspections and product development through its offices in Beijing and Shanghai, aiming to expand the high-end tourism market.