Taiwan’s Covid-hit tourism operators wait for spending spree after government announces cash incentives for foreign travellers
- Taiwan announced late last month that half million independent foreign travellers will be eligible to receive NT$5,000 (US$162) each when visiting the island
- The giveaway scheme has been welcomed by the pandemic-hit tourism sector, though specifics of the plan have not yet been released by the government
Taiwan’s pandemic-weary tourism sector is expecting big payday from a government plan that will give foreign travellers money to spend on the island’s hotels, transport and restaurants.
The government announced late last month that half million tourists will be eligible to receive NT$5,000 (US$162) each when visiting Taiwan. Industry analysts say the initiative will provide a healthy boost to tourist numbers, though caution details of the scheme are still unclear.
Flight bookings to Taiwan jumped by 61 per cent in the week after the announcement on February 23 when compared with bookings from January 26 to February 2, the travel market research firm ForwardKeys said. The top three sources of bookings were Singapore, Vietnam and Malaysia.
A total of US$81.3 million will be made available under the plan, which could be a huge gain for the tourism sector if the handouts are restricted to travel-related services.
“Most tourism boards would have data on tourist spending, and if governments are pragmatic, then they would target locally owned businesses,” said Zennon Kapron, Singapore-based director of financial industry research firm Kapronasia.
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“These are the businesses that have suffered the most over the pandemic and typically helping them helps the entire economy, the impact of which could likely be quantified fairly easily.”