Taiwan, here I come!

Three travelers from Beijing enjoy pearl bubble milk tea, one of Taiwan’s best-known specialty drinks. (Photo by Chang Su-ching)

The arrival of independent mainland Chinese tourists is expected to give Taiwan’s tourism industry and many other sectors a shot in the arm.

“I’ve always wanted to travel to Taiwan by myself rather than as part of a tour group so that I can go wherever I want to go and do whatever I want to do. Still, this day has arrived sooner than I thought. It’s a nice surprise,” says 31-year-old Candy Lee from Beijing. “I was also overwhelmed by the warm welcome and media attention that we received when we arrived at Taiwan Taoyuan International Airport.”

Taiwan’s Straits Exchange Foundation (SEF) and mainland China’s Association for Relations Across the Taiwan Straits (ARATS) exchanged documents on June 21 this year allowing mainland residents to visit Taiwan as independent travelers rather than as members of a tour group, as was previously the case. Lee was among the 278 mainland Chinese tourists who touched down in Taiwan on June 28 this year, the first day of travel under the new rules.

Taiwan began accepting organized tour groups from mainland China in July 2008 after President Ma Ying-jeou (馬英九) took office with a pledge to normalize cross-strait relations. Prior to the June 21 agreement, the number of mainland visitors had grown to an average of 3,350 a day since the daily quota was raised from 3,000 to 4,000 early this year. All of those visitors were required to travel as part of an organized group. The recent cross-strait agreement allows for an additional 500 individual mainland tourists per day from the three major mainland cities of Beijing, Shanghai and Xiamen to come to Taiwan for a maximum stay of 15 days.

For her part, Candy Lee says she would like to take her time looking around Taipei during her five-day stay, doing some shopping, sampling local dishes, relaxing at one of the city’s many stylish cafes and visiting bookstores. The destinations listed on her travel plan include the National Palace Museum, Taipei 101, National Chiang Kai-shek Memorial Hall, the Chiang Kai-shek Shilin Residence, Shida night market and Eslite Bookstore.

Mainland Chinese student Du Jin, left, and his parents taste local delicacies at Danshui Old Street in New Taipei City. (Photo by Chang Su-ching)

Lee says she also planned to go to see the movie Transformers: Dark of the Moon during her visit. International movies are released a few days earlier in Taiwan than in mainland China, she says, adding that there is also a greater selection of them here. As far as shopping is concerned, Lee says she knows that Taiwan’s pineapple cakes and nougats are very famous, so apart from enjoying them herself, she planned to buy some to take home as gifts for her relatives and friends.

TV Travel

The Beijing-born traveler also likes Taiwan-produced television dramas and films, particularly the film Secret, which was directed and written by Taiwanese pop star Jay Chou (周杰倫). She intended to visit Tamkang Senior High School in Danshui District, New Taipei City, where the majority of the film’s scenes were shot.

Despite it being her first trip to Taiwan, Lee says she has felt pretty comfortable as the two sides share a common language and local people are friendly and helpful. The city is also less crowded compared to Beijing or Hong Kong, and Taipei appears to have more to offer in terms of recreational activities, she says.

The holidaymaker says she has little knowledge of Taiwan’s history and culture, but does know about the island’s democracy and openness, adding that her primary source of information about Taiwan is mainland Chinese television programs.

“Since my visit this time is short, I’ll just stay in Taipei. But I’m sure I’ll come back again as I know Taiwan has many other interesting places,” Lee says. “Thanks to the launch of the individual travel program, I can even come over for the weekend. That’s really great!”

A poster welcomes independent mainland visitors to Taipei. A recent cross-strait agreement allows 500 such tourists per day to visit Taiwan for a maximum stay of 15 days. (Photo by Central News Agency)

Wang Xiao-chen (王曉晨), another independent traveler from Beijing, says she is especially interested in savoring Taiwan’s food offerings including oyster omelets, dan zi noodles, tempura, meatballs, chicken cutlets, wok-fried squid served in a thick soup and pearl bubble milk tea. In addition to local night markets, she planned to visit Din Tai Fung, one of the city’s most famous dumpling houses, as part of her food-based trip.

“Taiwanese cuisine is delicious. In fact, in Beijing we’ve a number of restaurants that offer Taiwanese dishes and are operated by Taiwanese. They’re pretty good,” Wang says. “Nevertheless, I’d like to use this trip to get an authentic taste of Taiwanese delicacies and enjoy them to my heart’s content.” Wang adds that Taipei has such a convenient transportation network, she planned to rely solely on the metro system to travel around the city.

University student Du Jin (杜金), 22, and his parents also arrived on the first day of travel under the new scheme. It was their second trip to Taiwan. They first visited the island in 2010 by joining a ’round island tour, visiting several major scenic spots including Sun Moon Lake, Alishan, Kenting National Park and Taroko Gorge. In particular, they were captivated by the beauty of the sunrise and “sea of clouds” at Alishan, a mountain resort and natural preserve located in Chiayi County, southern Taiwan.

“Last time, we had a very short stay in Taipei, just stopping at the National Chiang Kai-shek Memorial Hall and National Dr. Sun Yat-sen Memorial Hall for a few minutes to take photos,” Du says. “My friends tell me that there are a lot of fun places for young people in Taipei like night markets and Ximending—a shopping district with movie theaters, clothing and shoe stores, karaoke parlors, department stores and local snacks. So this time, we intend to stay only in Taipei and take time to go to those places as well as other shopping areas in Xinyi District and along Zhongxiao East Road.”

Money to Burn

According to tallies compiled by the Tourism Bureau under the Ministry of Transportation and Communications, the total number of mainland tourist arrivals since mid-2008 amounted to 2.42 million by the end of June this year. During that time, they generated nearly NT$120 billion (US$4 billion) in foreign exchange earnings, spending an average of US$245 a day. An additional 500 independent travelers per day would mean an extra 182,500 tourists a year, which could generate an additional NT$9.1 billion to $19.5 billion (US$314 million to $672 million) in foreign exchange earnings on average stays of seven to 15 days.

Benson Chen (陳振宏), general manager of Comfort Travel Service Co. in Taipei, says the new rules allowing mainland Chinese to make independent trips to Taiwan will create a new market segment for the local tourism sector, adding that he is upbeat about the potential for lucrative business opportunities. Moreover, Chen is glad to see that starting July 1 this year, the number of direct flights between Taiwan and cities in mainland China will be allowed to increase from 370 to 558 a week. That will serve as another boost to cross-strait tourism exchanges, he says.

Mainland Chinese tourists visit one of Taiwan’s scenic attractions, Yehliu Geopark in Wanli District, New Taipei City. (Photo by Central News Agency)

Following the establishment of direct transportation links across the Taiwan Strait in 2008, Chen’s company established branches in Beijing, Shanghai, Guangzhou and Xiamen to tap the new business opportunities. Comfort Travel raked in nearly NT$30 billion (US$1 billion) in sales in 2010, the highest among local travel agencies, with about 17 percent of that amount from cross-strait travel.

Until now, a seven-night, eight-day ’round island package tour has been the most popular choice for mainland tourists visiting Taiwan, Chen says. Local travel agencies have had no alternative but to offer more or less similar ’round island tours, with the result that profits have dropped due to price wars. Moreover, he says that such a trip is very rushed and challenging for participants, particularly older visitors, adding that 70 percent of mainland tourist arrivals are over 55.

Off the Beaten Track

“Now we can design a wide range of mini or custom tours for individual mainland tourists,” Chen says. “Plus, the ones that like to travel on their own itineraries are mostly younger than those in tour groups and have stronger purchasing power. They’ll go to places for accommodation, dining and recreation that in the past weren’t included on group tours. That’ll benefit a wider variety of local businesses.”

Chen says his company plans to offer diverse options for mainland holidaymakers, including trips dedicated to cycling, hiking, diving, hot springs and health examinations. The travel service has recently purchased 10 mini buses to meet the transportation needs of mainland tourists who wish to travel as a family or with friends. It has even set up a special 24-hour telephone hotline and stations representatives at the airports in Taoyuan, northern Taiwan and Songshan in downtown Taipei to serve individual mainland Chinese travelers.

“The less restricted travel program will allow mainland tourists to explore Taiwan in ways previously unavailable and help them enjoy better quality vacations, while getting to know more about Taiwan’s culture and folk customs,” Chen says. “Consequently that’ll increase their willingness to make repeat visits.”

Mainland tourists generated nearly US$4 billion in foreign exchange earnings from mid-2008 to late June this year. (Photo by Central News Agency)

Still, there is room for improvement in the new arrangements, according to Chen. He hopes that authorities on both sides of the Taiwan Strait can further streamline the application procedures for mainland residents traveling to Taiwan, which take about two to three weeks. Currently, the National Immigration Agency (NIA) under the ROC Ministry of the Interior requires independent travelers from mainland China to first obtain a travel pass to Taiwan from mainland authorities, then submit a financial statement, proof of travel insurance and a travel plan including their entry and departure dates and itinerary when applying for an entry permit to Taiwan. The applications also have to be made through local travel agencies certified by the ROC Tourism Bureau. The travel agencies are held responsible for ensuring that the visitors return to mainland China. The NIA says it had issued only some 1,700 permits by late July, although the agency adds that during the same period nearly 11,000 applications were awaiting approval by mainland authorities.

Chen says he would like to see the rules for mainland Chinese tourists relaxed even further, as well as more cities on the mainland included in the travel scheme. This would boost visitor numbers and thus create larger economic benefits for local businesses, he says. “Many countries such as the United States, Canada and Australia and our neighbors including Japan and South Korea have been aggressive in soliciting mainland Chinese tourists by simplifying visa requirements or providing visa-free travel and tax refunds,” Chen adds. “We stand a better chance of attracting mainlanders given the geological proximity and cultural and language similarities providing we can make their entry easier and improve the quality of our services.”

The SEF and ARATS are scheduled to review the pact on a quarterly basis and may propose adjustments with regard to visitor numbers and the cities eligible for the individual travel scheme.

Alex Hung (洪子仁), president of Shin Kong Medical Club, an organization set up for medical travel by Shin Kong Wu Ho-su Memorial Hospital in Taipei, says his hospital has received about 800 mainland medical tourists since 2009, the year it began serving mainland Chinese travelers. Most of those visitors chose a half-day health check as part of a packaged group tour, but so far, visitor numbers, as well as their spending, have fallen short of expectations. Hung says he suspects the limited time available to those on group tours is a major reason for the less than stellar results of the program. That should change with the advent of the independent travel scheme. “With the availability of individual travel, mainland Chinese can now make a health check or aesthetic procedure their main purpose for traveling to Taiwan. They can thus have all the time they need and can opt for comprehensive or tailor-made examinations based on their specific problems, medical history or doctor’s recommendation,” Hung says. “That will certainly help raise the number of mainland visitors to our hospital and their spending, too.” The medical club recently teamed up with a local travel agency to introduce a number of package tours aimed at independent travelers from mainland China. The tours combine a health exam or aesthetic medicine service with sightseeing and other leisure activities including hot springs and spas.

Shanghai businessman Tom Wang, 55, gets a health examination at Shin Kong Medical Club in Taipei. (Photo by Huang Chung-hsin)

Hung says with its advanced medical technology, well-appointed facilities, quality services and competitive prices, Taiwan has a big advantage in promoting medical tourism. Its medical costs, for example, are on average at least 50 percent lower than other Asian economies such as Hong Kong, Japan, Singapore and South Korea, not to mention those in the United States and some parts of Europe.

Vacation Checkup

Shanghai businessman Tom Wang (王省), 55, and his 85-year-old father were also among the first arrivals to Taiwan on June 28 and planned a five-day trip. On the second day of their vacation they visited their Taiwanese relatives and the National Palace Museum. On the third day they arrived at Shin Kong Wu Ho-su Memorial Hospital for cardiovascular examinations using a 256-slice computerized tomography (CT) scanning system.

“I’d heard about Taiwan’s high quality medical care and thought I’d like to experience it. In Shanghai, most hospitals are crowded and it’s not uncommon to wait for two hours to see a doctor,” Wang says. “Also, my father has long hoped to visit the grave of his brother, who came to Taiwan in 1948 and passed away a few years ago, and to meet his brother’s family, but he’s too old to cope with the intense schedule of a group tour. So I decided to use this chance to bring him here and have a health checkup as well.”

After undergoing their physical examinations at Shin Kong, Wang and his father enjoyed a healthy meal prepared by the hospital while waiting for the exam results. “The hospital’s equipment is very high-tech and the examination procedure is detailed. Plus, the environment and service are nice, which makes us feel at ease,” Wang says. “Given the convenience of direct cross-strait flights and the individual trips that we’re allowed to make, I plan to do an annual health checkup in Taiwan from now on. And next time I’ll ask for the positron emission tomography [PET] exam for cancer screening recommended by the doctor.”

The ROC Tourism Bureau produces a multitude of pamphlets introducing the island’s scenic spots and operates a travel service center to serve mainland and other visitors. (Photo by Chang Su-ching)

It is early days for the independent travel scheme, but there could be good reason for all the optimism about greater business opportunities. Since ties were opened for mainland tourists on group tours in mid-2008, the number of visitors has risen exponentially from around 54,000 by late 2008, to 600,000 in 2009 and 1,200,000 in 2010. David Hsieh (謝謂君), deputy director-general of the Tourism Bureau, says mainland Chinese have surpassed Japanese in just three years to top the number of Taiwan’s inbound tourist arrivals, creating very good growth opportunities for the island’s tourism industry and the overall economy. Making independent travel available to mainlanders, he says, will enhance that growth momentum.

Help on Hand

Hsieh says the bureau has produced contact cards for mainland travelers that list the local telephone numbers for travel information, emergency assistance and offices that handle cases involving lost documents. It also produces a number of pamphlets that introduce the island’s scenic attractions and recommended itineraries, in addition to setting up a dedicated counter for mainland visitors within its travel service center.

Moreover, besides promoting a hotel accreditation system, the Tourism Bureau encourages the private sector to upgrade or build new tourist hotels and other facilities by offering subsidies and helping them secure preferential loans. It also cooperates with local governments to offer shuttle bus services running between train stations and major scenic sites to facilitate tourist arrivals in those areas.

“By embarking on their own itineraries, mainland Chinese travelers have a lot of options during their stay in Taiwan. They can try out all sorts of local delicacies, get a health checkup or take wedding photos, in addition to enjoying all kinds of recreational activities,” Hsieh says. “That’ll enable them to explore Taiwan in greater depth and, more significantly, deepen mutual understanding through closer interactions with Taiwanese people.”

Write to Kelly Her at kelly@mail.gio.gov.tw