Travel agencies report a surge in bookings as airlines increase flights to meet the rising demand.
TAIPEI: Businesses—particularly those in tourism—are already experiencing a sales boost as Taiwan welcomed the return of tourists on Thursday (Oct 13), following the easing of some of the world’s most stringent COVID-19 border restrictions. Travellers began arriving at Taoyuan International Airport shortly after midnight, as the territory lifted quarantine and isolation rules.
However, visitors are still required to wear masks, provide proof of vaccination, take rapid COVID-19 tests, and monitor their health for seven days. “I’m just glad that we don’t have to worry about (quarantine) now, (and we can) just spend time with our families and experience Taiwan,” remarked a tourist arriving early Thursday morning at Taoyuan International Airport, bustling with travellers for the first time in over two years.
Since the reopening announcement two weeks ago, travel agencies have reported a surge in bookings, with airlines adding flights to accommodate the increasing demand. Mr. Eddy Lan, assistant vice president at Hsi Hung Travel Service Co, noted a 20% increase in tour bookings. His agency, like many others in the tourism sector, has struggled over the past two years, facing significant revenue drops as the island closed its borders during the pandemic. “Overseas travel accounts for 90% of our company’s business. (The pandemic has forced us) to cut our staff from 500 to around 170 or 180 today. The entire business had literally dropped down to zero,” stated Mr. Lan, 54.
MANY TRAVELLING DESPITE HIGHER EXPENSES
Taiwanese eager to travel abroad have flocked to tour agencies and quickly purchased plane tickets, with many packages selling out, especially to popular destinations like Japan and South Korea. This surge in interest comes despite prices rising by 30% to 40% compared to pre-pandemic levels due to increased airfares and costs. In 2019, about 17 million Taiwanese travelled overseas, but that number plummeted by 98% last year. Before the pandemic, Taiwan’s tourism industry accounted for approximately 4% to 5% of the island’s gross domestic product (GDP).
As the number of inbound travellers fell by over 90% in the past two years, many tourism-dependent companies have shut down. However, with global airlines ramping up flights to and from the island, Mr. Lan anticipates the tourism industry will gain momentum and return to pre-pandemic levels soon. “I estimate that the earliest for the tourism industry to return to pre-pandemic level would be the second half of next year, and the latest would be 2024,” he predicted.
BUSINESSES EAGER TO SEE RETURN OF TOURISTS
Tourism is not the only sector eagerly anticipating the reopening. A recent survey revealed that 91% of companies in Taiwan believe it is crucial to reopen borders. Many businesses, particularly hotels and restaurants, have expressed their eagerness to welcome back tourists, with some retailers even working overtime to stock up on products ahead of the expected increase in demand.
According to health authorities, the decision to reopen now comes after over 70% of Taiwan’s population received booster shots. The country also has a sufficient supply of vaccines, rapid test kits, and medication for patients.
REOPENING COULD AFFECT ELECTIONS
However, the timing of the border restrictions easing surprised some political observers, who anticipated that President Tsai Ing-wen’s administration would wait until after the local elections on Nov 26 to reopen, as any spike in COVID-19 cases could impact her party’s performance at the polls. Last week, Taiwan’s infection numbers were rising at approximately 44,000 per day, among the highest in the world.
“Once the borders are reopened, its high infection rate could persist, which will put a lot of pressure on the DPP as elections near,” commented Professor Chu Chao-Hsian of the National Taiwan Normal University, referring to Ms. Tsai’s Democratic Progressive Party (DPP).
Delaying the reopening, however, could compromise the economy and frustrate individuals and businesses already burdened by pandemic fatigue, especially as other economies in the region have forged ahead with reopening efforts. In August, the government downgraded its growth forecast for this year to 3.76%, down from 6.57% last year, primarily due to inflation and decreasing global demand.
Concerns persist that the growth forecast might be revised downward again as September exports fell for the first time in two years, and the finance ministry warned of “deepening doubts” about the outlook. “General voters may feel strongly about the deteriorating economy. Therefore, reopening borders to create more business opportunities is a key reason for the government to ease border controls,” noted Professor Chu.
Based on various polls, the ruling DPP is trailing behind the opposition Kuomintang (KMT), with estimates suggesting the DPP could lose as much as two-thirds of the 22 counties and cities up for grabs, posing a serious threat to its chances of winning the presidency in 2024. If the reopening manages to revitalize Taiwan’s economy, it could benefit the DPP in the upcoming elections, Professor Chu added.
