Last October 2022, in a bid to kickstart tourism industry recovery, Taiwan re-welcomed incoming visitors to its borders as it finally lifted previously mandatory and strict quarantine protocols as per a report by Channel News Asia. With Taiwan expecting an influx of returning tourists, such a development will effectively revitalize the economy and bring business back to several of its industries.
Recovery and Development of Taiwan’s Economy
Many industries will experience growth because Taiwan decided to re-open its borders to visitors, but the tourism industry and closely related sectors are set to benefit the most. Although there is no guarantee that Taiwan’s tourism market will see similar growth achieved during pre-pandemic times, the international reception and early indicators still suggest relative success.
Recent travel advisories from major, global powerhouse countries like the United States reflect an encouraging trend for the Taiwanese tourism industry. Specifically, a recent report from the U.S. Department of State lowered Taiwan to a Level 1 ranking. This ranking advises American citizens to “exercise normal precautions,” which indicates that Taiwan is safe and secure to travel to.
The Taiwanese government and its tourism bureau have also been proactive in advertising the country as a tourist destination as evidenced by recent cultural initiatives held in Canada and the Philippines, which saw local products promoted through business-to-business events.
The interest generated through the effort of the public sector will undoubtedly present promising business opportunities in the private sector. Given that incoming tourists will need accommodations, those currently situated in the hospitality industry should expect an influx of business. To capitalize, local companies can create marketing schemes that incentivize travelers through packages that bundle essential services, such as tour plans, day-to-day transportation, and lodging.
Meanwhile, the increased number of tourists will also help micro, small, and medium enterprises (MSMEs) in the food & beverage (F&B) sector as local businesses will be able to cater to a new market. Considering that the F&B industry has relied heavily on food delivery and online orders to generate profit during the pandemic in Taiwan, these establishments will need to adopt an omnichannel approach that considers both the demand for online and in-person transactions. Adopting such an approach will also reap long-term benefits as it provides flexibility for future changes that MSMEs might make to their business models.
With Taiwan set for economic growth via the business that the tourism industry will attract, both the public and private sectors will be faced with the challenge of sustaining interest from tourists. As such, interested parties should expect an emphasis on public-private cooperation in the coming months as Taiwan navigates the recovery of its economy. This will likely manifest in mutually beneficial partnerships between the government and local businesses across several industries. Further, potential investors from foreign parties should capitalize on and explore business opportunities that will facilitate their entry given Taiwan’s eagerness to stimulate development.