Tourism & Recreation Industry
Analysis and Investment Opportunities
Department of Investment Services, MOEA
July 2009
Table of Contents
I.
Global Trendsin the Tourism & Recreation
Industry........................................2
II.
Status of Taiwan’s Tourism & Recreation Industry......................3
1. Supply and Demand in the Tourism & Recreation Industry........................3
2. Gaps in Industry Supply Chain, Investment Niches and Prospective
Foreign Investors..........................................................................................9
3. Major Suppliers in Taiwan.........................................................................12
III.
Investment Opportunities for Foreign Investors.........................................13
1. Promoting mutual cooperation between international hotel chain brands
and Taiwan enterprises...............................................................................13
2. Encouraging construction of tourism hotels and holiday resorts in
Taiwan........................................................................................................14
IV.
Investment Incentives
1. Preferential Tax..........................................................................................19
2. Financing Loans.........................................................................................20
V.
Industry-Academia Collaboration in Taiwan............................................20
1
I.
Global Trends in the Tourism & Recreation Industry
According to the World Travel & Tourism Council, the global tourism industry
(including tourism and related industry revenues, investment, and tax revenues
collected) in 2009 is projected to account for 9.4 percent of global GDP
(US$5,474,000,000,000), and, by 2019, for 9.5 percent of global GDP
(US$10,478,000,000,000). In addition, the number of people involved in pertinent
parts of the global tourism industry will reach 219, 810,000 in 2009 and is projected
to grow to 275,680,000 by 2019. Clearly, tourism will play an important role in
economic development at both the global and national levels.
World Tourism Organization (UNWTO) statistics for 2009 indicate that there were
924 million inbound international tourist arrivals in 2008, 16 million more than in
2007, resulting in a 2 percent growth. As a result of the global economic downturn,
there was a marked drop in tourism demand during the second half of 2008. The
Asia-Pacific region accounted for 20 percent of the global inbound tourism market,
second only to the European market share of 53 percent. There were 188 million
tourist visits to the Asia-Pacific region from all over the world in 2008 (see Chart 1).
UNWTO’s 2009 figures also show that tourist visits from all over the world to the
Asia-Pacific region in 2007 grew 10.5 percent over 2006, a growth rate second only to
the Middle East. The Asia-Pacific experienced a 1.6 percent growth in inbound
tourism in 2008 (see Chart 2).
Chart 1:
Chart 2:
Source: UNTWO World Tourism Barometer,
Source: UNTWO World Tourism Barometer,
January 2009 Barometer, January 2009
2
January 2009 Barometer, January 2009
Hotel Industry
Status of Taiwan’s Tourism & Recreation Industry
II.
Taiwan is East Asia’s only island bisected by the Tropic of Cancer. Rich in tourism
resources, it is developing destination, theme and lifestyle, as well as health and
fitness tourism. Ecological travel such as bird watching and whale and dolphin
watching,
and theme
travel
like festival
tourism, cultural
tourism,
and
medical/recuperative tourism all have great potential. Currently, tourism authorities
are stepping up investment and construction at tourist sites of global market scale and
domestic scenic spots with international potential so as to create an excellent tourism
and travel environment. However, gaps in the industry supply chain, such as a lack of
strategic alliances with prominent international hotels and the building of
convention-related service facilities and international tourist resort areas, urgently
await the participation of foreign businesses to plan and cooperate in putting Taiwan
on the East Asian travel and recreation map. Following is a detailed explanation of the
supply situation, investment niches, and major vendors in Taiwan’s tourism industry:
1. Supply and Demand in the Tourism & Recreation Industry
According to the World Economic Forum’s 2008 Tourism and Travel Competitiveness
Report, Taiwan ranked 43 among 133 countries assessed and seventh in Asia, behind
Singapore, Hong Kong, Japan, South Korea, Malaysia, and Thailand. With a series of
strong international promotions after 2004, inbound Taiwan tourism has posted a
growth in visitor arrivals year after year (see Table 1).
Table 1 Inbound Travelers by Country in the Asia-Pacific Region 2004–2008
Unit: million visitor arrivals
Japan
S.
Singapore Malaysia
Korea
Hong
Mainland
Kong
China
Taiwan
2004
6.14
5.83
8.33
15.70
21.82
109.04
2.95
2005
6.73
6.02
8.94
16.43
23.36
120.29
3.38
2006
7.33
6.16
9.75
17.55
25.25
124.94
3.52
2007
8.346
6.45
10.30
20.90
28.17
132.00
3.72
2008
8.35
6.89
10.11
22.00
28.20
130.02
3.85
3
Source: Department of Investment Services, MOEA compilation from website of each
country in June 2009.
According to differences in customer segments, Taiwan’s tourism and leisure market
can be divided into two types, domestic demand (leisure) and external demand
(tourism).
Table 2 Taiwan’s Tourism Foreign Exchange Revenue 2004–2008
2004
Inbound tourism foreign exchange (US$
billion)
4.05
2005
4.98
2006
5.14
2007
5.21
2008
5.94
2.95
3.38
3.52
3.72
3.85
(2.83) (2.80) (2.86) (2.99) (2.96)
Inbound tourists (million visits)*
Total domestic travel expenditures
(US$billion)
7.38
5.98
6.89
6.67
5.84
Domestic tourists (million visits)
1..09
93
1.08
1.10
96
Total Revenue (US$billion)
11.43
10.96
12.02
11.88
11.77
Source: Yearbook, Tourism Bureau, Ministry of Transportation and Communications
Note：Figures in parentnesis indicate foreign tourists excepting overseas Chinese
visitors
Taiwan inbound tourism figures for 2008, compiled by the Tourism Bureau, Ministry
of Transportation and Communications (MOTC), indicate that 1,775,229 visits, or 46
percent of all arrivals were made for the purpose of “tourism,” while those citing
“business” reasons totaled 881, 431, or 23 percent of the total. Broken down by
country of origin, the five largest source markets were Japan (28 percent), Hong
Kong/Macau (16 percent), the United States (10 percent), mainland China (9 percent)
and South Korea (7 percent). Average daily expenditures per traveler by country were,
respectively, US$260.47 (Japan), US$168.65 (HK/Macau), US$193.14 (United States)
US$231.10 (mainland China) and US$196.24 (South Korea).
On the supply side, employment created by tourism activities has remained above the
200,000-person level in recent years. Most of these employment opportunities were
created by the food and beverage, land transportation, and lodging services industries.
4
The job opportunities created by the tourism industry canprovide jobs for students
graduating from over 180 academic departments of schools in Taiwan, including
National Kaohsiung Hospitality College, Taiwan Hospitality and Tourism College,
and Ming Chuan University School of Tourism, with a platform for utilizing their
acquired professional skills.
Taiwan’s tourism and recreation industry is attempting to establish and build on the
tourism characteristics of five regions to establish flagship tourism spots nation-wide
that possess international appeal. It is also promoting the development of large-scale
event-oriented tourism and designated theme travel.
1.1
Building on the tourism characteristics of five regions to establish flagship
scenic spots with international appeal
Taiwan’s exploitation of its tourism resources has progressed from developing
specific spots (such as Taipei 101, the National Palace Museum, Sun Moon Lake,
Alishan, Mount Jade, Love River, Kenting National Park, and Taroko Gorge) and
package tours (such as seacoast tours in northern Taiwan, Sun Moon Lake tours,
Alishan tours, Hualien-Taitung tours, and Hengchun Peninsula tours) to the
recasting of the image of entire areas. The development of flagship tourist spots
with international appeal will be basedon the characteristics of the following five
regions:
1)
The northern region, characterized by the “Life and Culture of Taiwan”
through art and fashion design, popular music, and the culture of the Chiang
family legacy.
2)
The central region, characterized as “Skilled and Fashionable Taiwan”
through tea plantations, flower arranging, recreational farms, and cultural
creativity.
3)
The southern region, characterized as “Historical and Seaside Taiwan”
primarily featuring history, historic spots, seaside, and ecology.
4)
The eastern region, characterized as “Idyllic Taiwan” through bicycle tours,
indigenous peoples, organic farming, and the Pacific Ocean.
5)
The offshore islands region, characterized as the “Isle Character of Taiwan”
5
by Penghu being designated the isle of international vacation resorts and
Kinmen featuring its battlefield atmosphere, folk culture, and picturesque
village scenery.
1.2
Promoting Large-scale Festival Activities
These primarily include athletic events (such as the World Games 2009 in
Kaohsiung, the 21st Summer Deaflympics, Taipei, 2009, Sun Moon Lake
Cross-Lake Swim, Bicycle Tour Around Taiwan, Taroko Gorge International
Marathon, and Hsiuguluan River White Water Rafting), indigenous peoples
festivals (Amis Harvest Festival and Austronesian wedding events), gastronomical
experiences (such as the Come Enjoy Taiwan’s Catered Banquet event, Taiwan
Culinary Exhibition, Hot Springs Gourmet Food Carnival, and Taipei International
Beef Noodle Festival), religious events (Ghost Month Festival, Zuoying Wannien
Folkore Festival, Taiwan Lantern Festival, Dajia Mazu Pilgrmage Procession,
Dragon Boat Festival races), ecology events (such as the Maolin Purple Butterfly
Valley Biennial Butterfly Watching Event, Taiwan International Orchid Show, and
Hakka Tung Blossom Festival), artistic events (such as the Sanyi Woodcarving
Festival and Yingge Ceramics Festival), and seaside music festivals (such as the
Hohaiyan Rock Festival and Kending Spring Music Festival).
1.3
Promoting “in-depth” theme travel
1.3.1
Mountain climbing and fitness hiking
With the nearly 4,000-meter-tall Jade Mountain as its centerpiece, Taiwan can offer
a selection of 258 peaks over 3,000 meters high. Plans are to package six
intermediate-level mountain-hiking itineraries and 14 beginner-level fitness hikes
to attract mountain climbers and fitness hikers from all over the world.
1.3.2
Salon photography and honeymoon trips
This concept capitalizes on Taiwan’s salon photography advantages of diverse
photogenic settings, fashion savvy, photographic techniques and reasonable pricing
to promote Taiwan’s top ten wedding photo locations, integrating well-known
6
events such as the north coast wedding photo shoot, Austronesian wedding and
Weddings beneath the Alishan Sacred Tree to attract young people from Hong
Kong, Singapore, and Malaysia for a novel experience as well as to make a name
for Taiwan as a salon photography center and “honeymoon island.”
1.3.3
Senior Sentimental Journey packages
The retirement of Pacific World War Π babies offers the opportunity to attract
them to Taiwan for package tours that integrate Japanese colonial-era sites. Plans
call for LOHAS-paced tours that combine sentimental revisits, hot springs, and
gourmet cuisine to attract senior tourists from Japan and Southeast Asia.
1.3.4
Medical tours
In line with the promotion of Taiwan’s Chinese medicine and hot-spring logo
scheme, besides offering hot-spring therapeutic and Chinese medical travel, Taiwan
intends to offer packaged medical checkup itineraries, to U.S. and Hong Kong
operators offer dental remediation to Japanese operators, and to offer dialysis
itineraries, to Singapore operators, making Taiwan a globally competitive medical
travel destination.
1.3.5
Trips based on Taiwan’s TV and Pop Music Allure
Utilizing Taiwan’s leading role in celebrity-based television series and Mandarin
Chinese popular music, key Taiwan tourist spots will be combined with
celebrity-based TV program filming sessions and music concerts. Tours will
include tie-in products and booklets on how to follow the media stars to attract their
fans from neighboring countries to Taiwan.
1.3.6
Trips to sporting events
Capitalizing on the record-setting performance in world events of Taiwan’s athletic
stars, and in line with Taiwan’s hosting the the World Games 2009 in Kaohsiung,
the 21st Summer Deaflympics, Taipei, 2009, package tours will be promoted in
combination with large-scale competitions, such as the Asia Cup Baseball
7
Championship, marathons, Round-the-Island Bicycle Race, and golfing trips.
1.3.7
Railroad trips
Taiwan will target railroad buffs from various countries with package trips on the
High Speed Rail, branch lines of the Taiwan Railway Administration, steam
locomotives, and peripheral scenic spots, and will hold CK124 steam locomotive
sentimental journey events.
1.3.8
Hot Spring, Gourmet, and Recuperation Trips
Taiwan’s rarely matched diversity of hot springs and local foods will be used to
entice modern travelers into a LOHAS lifestyle of health and sustainability through
the strong promotion of hot spring health and gourmet cuisine tours.
1.3.9
Eco-tours
Taiwan possess a diverse array of ecological settings and outdoor events, such as
Northeast Asia’s tallest mountain peak (Jade Mountain) to attract mountain
climbers, as well as tourists to engage in bird watching, whale watching off the east
and northeast coasts, marine geological observation trips, and Green Island diving.
1.3.10 Agricultural tourism
Plans call for repackaging farming and fishing villages that have successfully made
the transition into experiential products to attract modern urban tourists from Japan,
Hong Kong, and Singapore.
1.3.11 Cultural education trips
Cultural research and internship activities will include packaged trips to learn
Chinese, learn traditional folk arts, tour Taiwan’s historical sites (including colonial
sites and aboriginal villages); religious/cultural and festival experience trips (such
as the Hakka Tung Blossom Festival, Amis Harvest Festival, Pingxi Sky Lantern
Festival, Yanshui Beehive Fireworks, and Dajia Mazu Pilgrimage procession); and
cultural creativity performances (Cloud Gate Theater, Han-Tang Yuefu, hand
8
puppet theater, and tea ceremony performances). These will be offered as
“in-depth” travel itineraries to attract culture lovers.
1.3.12 Other styles of uniquely Taiwan travel
Learning tours by young people, working holiday travel and surfing, diving, hang
gliding, and paragliding adventure trips are gaining in acceptance, and
environmentally friendly and energy-saving bicycle events are proving to be very
popular.
2. Gaps in Industry Supply Chain, Investment Niches and Prospective Foreign
Investors
The number of international travelers coming to Taiwan has continued to grow in
recent years. From January to May 2009 a total of 414,953 travelers came from the
Chinese mainland, marking a 250 percent growth over the same period of the year
before; and continuing to expand the domestic demand leisure market is another key
point for attention. In the “Best of Taiwan Tourism Development Plan,” promoted by
the Tourism Bureau, NT$30 billion has been budgeted from 2009 to 2012 to plan and
undertake projects utilizing optimal positioning (deployment of advantages), buying
low (cultivating competitiveness), and upgrading (adding value) that involve
attractive flagship features, international tourist spots, industrial reinvention, talent
cultivation, market development, and quality enhancement so as to build up an
outstanding tourism environment for Taiwan and upgrade the competitive advantages
of its tourism industry.
The tourism industry is broad in scope and reach, but at its core are the hotel industry,
food and beverage services industry, transportation industry, and amusement park
industry; and among these, travel intermediaries include travel agents as well as
ancillary industries and organizations (see chart 3).
One supply chain gap in Taiwan’s tourism industry is an insufficient number of global
brand hotels. Taiwan currently has 63 international tourist hotels, but only nine have
9
technical cooperation with international hotel chains; these include the Gloria Prince
Hotel (Prince), Hotel Royal Taipei (Nikko), Grand Hyatt Taipei, Shangri-La’s Far
Eastern Plaza Hotel Taipei, Sheraton Taipei, Westin Taipei, Four Points by Sheraton,
Shangri-La’s Far Eastern Plaza Hotel Tainan, and Nice Prince Hotel Chiayi (Prince).
We must continue to work on boosting strategic alliances with prominent international
hotels to create a competitive advantage for Taiwan in the Asia region.
A second gap is not enough hotel rooms in Taipei, and the number of large
international conference venues able to hold over 500 people is limited. If
international conference venues and international hotel facilities can be built at scenic
Taiwan locations, the result will be complementary growth between the tourism and
conference/exhibition industries.
A third gap is that most of Taiwan’s 24 large amusement parks are located in the
western part of the island, and current amusement park service facilities are only
capable of meeting the demand of the domestic travel market. To attract international
tourists, diversified recreation and entertainment facilities such as international tourist
resort areas, including theme parks, shopping malls, gourmet centers, conference and
exhibition centers, and large-scale performance venues, should be developed near
metropolitan areas.
The number of overseas businesses investing in the Taiwan tourism industry at the
current stage is still limited. It is recommended that overseas businesses invest in the
aforementioned areas of Taiwan’s tourism and recreation industries, as future
development potential is without limit.
10
Chart 3: Tourism Industry Structure
Transportation Industry
Hotel Industry
Travel Intermediaries
1.
Wholesale Travel Agents
2.
Retail Travel Agents
Food and Beverage
Services Industry
Amusement Park
Industry
Tourists
Ancillary Industry and Organizations
1.
Travel Information Media
2.
Tourism Promotion Organizations
Source: Department of Investment Services, MOEA
Currently, expectations are that overseas groups will work with Taiwan tourism
groups to create new opportunities in the overall travel market. For example, the UK’s
Amazing Ltd. Group has begun carrying out a large-scale hotel and vacation resort
development project at the seaside Fenggui Village in Penghu County, with an
assessed investment of at least several billion New Taiwan Dollars. Taiwan’s Janfusun
Group, operator of the Gloria Prince Hotels and Nice Prince Hotel in Chiayi, expects
to operate and manage the Amazing Ltd. Group’s Penghu resort. aThis investment in
Penghu is the first investment by Amazing Ltd. in the greater China area. In addition,
Amazing Ltd. and Janfusun Group signed a cooperation memorandum of
understanding in December 2007 to jointly invest in and establish a leisure and
tourism consulting company, which is preparing to secure a tourist gaming operators
license and enter the gaming industry.
Other potential overseas tourism and travel hotel vendors include the largest budget
hotel chain in mainland China the Parity Hotel Chain (its first “Taiwan Home Inn” is
planned to open in Taipei), the French Accor Group (in which is developing a Taipei
County BOT project), and the U.S. Starwood Hotel & Resorts group.
11
3.
Major Suppliers in Taiwan
In response to the Doubling of Tourist Arrivals Plan and Sports and Recreation
Strategic Service Industry Development Outline and Action Plan as well as proposals
from pertinent government agencies, such as the 2015 Economic Growth Outlook
First Stage 3-Year Sprint Program (2007–2009), Eastern Area Sustainable
Development Basic Plan, Inbound Mainland Tourist Liberalization Policy, and Best of
Taiwan Tourism Development Plan, the government in Taiwan, besides encouraging
private-sector investment and intensifying efforts to develop a diversified tourism
environment, is planning the development of regional tourism flagship projects and
tourist spot seamless travel service projects to carry out basic travel construction and
investment as well as renovation of facilities (including projects to raise the quality of
ordinary hotels and revamp major local scenic spots), as well as matching industry
development (such as bringing in international hotel chains and sponsoring and
holding prominent competitions). Investment by both the government and private
sector will reach into the tens of billions of New Taiwan Dollars.
3.1 Hotel Industry
According to the Tourism Bureau, MOTC as of the end of May 2009, Taiwan had
63 international tourist hotels (with a total of 18,348 rooms). The top five hotels in
terms of room capacity were: the Grand Hyatt Taipei (865 rooms), Sheraton Taipei
Hotel (692 rooms), Howard Plaza Hotel Taipei (606 rooms), The Splendor Kaohsiung
(592 rooms), and the Grand Formosa Regent (569 rooms). It also had 31 regular
tourist hotels (with 3,672 rooms in all), and 5,464 ordinary hotels as well as bed and
breakfast hostels (with a total of 117,256 guest rooms). There are 38 international
tourist hotels in the application or planning stage (with an estimated 11,034 guest
rooms), representing a total investment of nearly NT$84 billion.
3.2 Amusement Park Industry
The amusement park industry is capital-labor-technology; and knowledge-intensive,
and is a locomotive industry for vitalizing the local economy; yet, it is a type of
12
industry driven by domestic market demand. In response to rapid changes in the tastes
and demands of customers, operators must change accordingly and continue to
refurbish equipment or invest further to maintain a competitive advantage. Taiwan
currently has 24 large-scale amusement park operators. Tourism Bureau figures for
April 2009 indicate that there were 2,233,000 visits to Taiwan amusement parks in Q1,
an increase of 26.21 percent over the same quarter of last year. Total revenue was
NT$1.34 billion, up 12.19 percent. The top five amusement parks in terms of
customers drawn were the Formosan Aboriginal Culture Village, Leofoo Village,
Janfusun World, Window on China, and Farglory Ocean Park, most of which are
located in western Taiwan.
3.3 Travel Agents
According to the Tourism Bureau, as of the end of June 2009 there were 2,139
travel agents in Taiwan (including 88 consilidated travel agents) with an estimated
34,000 employees. Among these, Lion Travel, Phoenix Tours, SET Tour, Star Travel,
and Cola Tour are the largest.
III.
Investment Opportunities for Foreign Investors
To make Taiwan into a major East Asia travel destination and boost its international
profile so as to attract international tourists to the island, the current policy used by
Taiwan’s Tourism Bureau is to promote measures that encourage Taiwan tourist hotels
to join international hotel chains and to plan and develop tourist hotel and vacation
resort BOT projects in scenic areas of eastern Taiwan and the offshore islands, to help
foreign firms discover Taiwan’s investment niches. A brief explanation follows:
1. Promoting mutual cooperation between international hotel chains and
Taiwan enterprises
To boost the operating standards of Taiwan hotels and bring them up to the standards
of prominent international hotels, Taiwan’s Tourism Bureau is promoting measure to
encourage domestic hotels to join up with international hotel chain brands. It hopes
that the operators of prominent international hotel chains will of their own accord
13
contact Taiwan tourist hotel operators and urge Taiwan enterprises to join their chains,
and introduce new operating models to raise industry service standards. To boost
overall hotel service quality while differentiating markets and providing customers
with lodging choices, Taiwan’s Tourism Bureau is in the midst of promoting
Star-Rating Hotel Assessment and Upgrading to International Standards plan. It is also
drafting Star-Rating Hotel Assessment Guidelines, and has commissioned the Taiwan
Assessment and Evaluation Association to carry out the assessment. When it is
completed, its assessment results will serve as the basis for issuing star ratings to
guide tourist hotel operators in building product brand distinction. Currently, there are
approximately 94 domestic tourist hotels, of which a few may be able to collaborate
with foreign firms and join international hotel chains.
To encourage tourist hotel and ordinary hotel operators to obtain a star rating and join
international or domestic hotel chains so that they may use the full range of guidance
for improvement of operating structure and boosting of professional capabilities, the
Tourism Bureau, has drawn up a draft Tourism BureauSubsidy Guidelines to Help
Star-grade Hotels Join International or Domestic Hotel Chains. Under this program,
any tourist hotel operator or hotel or ordinary operator assessed by the Tourism
Bureau as a star-grade hotel that joins an international or domestic hotel change may
apply to the Tourism Bureau for a subsidy to cover expenses incurred in joining the
hotel chain, such as membership fees, administrative fees, franchise fees, royalties,
brand name licensing fees, training fees or technical guidance fees. The amount of the
subsidy is limited to 50 percent of the annual franchise fees incurred by the tourist or
ordinary hotel operator, and may not exceed NT$5 million.
2. Encouraging construction of tourist hotels and holiday resorts in Taiwan
To promote high-quality vacation and recreation parks in the scenic areas of eastern
Taiwan and its offshore islands, the Tourism Bureau hopes that willing foreign firms
in Taiwan will invest in tourist hotels and vacation resorts. Potential investment
locations and bidding summaries are as follows:
14
2.1 Penghu Area
Penghu is located in the Taiwan Strait between the Chinese mainland and the island
of Taiwan, and is the only island county under Taiwan’s jurisdiction. Air traffic in and
out of Penghu is via MagongAirport, Wangan Airport, and Qimei Airport, with over
100 one-way flights daily to Taipei, Taichung, Chiayi, Tainan, and Kaohsiung. The
major portion of passenger ship traffic in and out of Magong Harbor is with Taichung
Harbor, Budai Harbor, Anping Harbor, and Kaohsiung Harbor. Recently there have
been proposals to promote two investment projects: the Yuweng Island Recreation
Resort Area Build, Operate, Transfer plus Renovate, Operate, Transfer (BOT+ROT)
project, and the Dongwei Stone Sculpture Park BOT+ROT project.
2.2. Yuweng Island Recreation Resort Area BOT+ROT project
2.2.1 Site location
The location for this project is a newly designated site on the eastern side of large
bridge spanning the sea at the very northern edge of Xiyu Township on Yuweng
Island. It connects residents of Xiyu Township via a sea-spanning bridge to the
north, and over the bridge to the Xiaomen Iislet Recreation Area, while to the south
it connects with Wannong Fishing Village and Erkan Ancient Residence.
2.2.2 Project Description
The project consists of a recreation resort hotel area (tourist hotel with a minimum
of 80 rooms), theme exhibition area (theme exhibition building including cultural
artifacts, handicraft studios, and display and vending of local farm produce) and
related tourism and leisure facilities.
2.2.3 Investment amount
Minimum investment of NT$200 million
2.2.4 Usage rights and area
The BOT land area is 3.2016 hectares and the ROT land area is 2.3766 hectares, for
a total project area of 5.5782 hectares, along with a peripheral sea operating and
15
management area of 3.366 hectares, with surface land rights for a period of 50
years.
2.2.5 Development timetable
Bid tender is scheduled for January 2010, with operation to commence in 2013.
2.3 Dongwei Stone Sculpture Park BOT+ROT project
2.3.1
Site location
Dongwei Stone Sculpture Park is situated near Magong City, Penghu County,
adjoining County Road 203 to the south not far from Dongwei Reservoir. To its
east, across county Highway 203, are private residences. To the east, across County
Highway 203 it connects to Dongwei Borough. To the north, Xiwei, the Penghu
Interior Sea, and Dacang Island can be seen. To the west is a sea dike, and very
close by is the Penghu interior sea intertidal zone. This side of the site is roughly 2
km from Magong City, at the junction of County Highway 203 and County
Highway 202. Traveling westward, County Highway 203 connects to Magong City;
traveling eastward, it connects to Baisha Township. onto the east, County Highway
202 connects to Huxi Township.
2.3.2 Project Description
The project consists of a stone craft workshop and welcome area, retail shops,
exhibition and marketing center, and tropical sea lodging area.
2.3.3 Investment amount
Minimum investment of NT$300 million
2.3.4 Usage rights and area
52 plots of government-owned land in number 478-1 of the Wendong sector of
Magong City, Penghu County, with a total site area of 4.2035 hectares (12,974
ping), with surface land rights for a period of 50 years.
16
2.3.5 Development timetable
Bid tender scheduled for June 2010, with operation to commence in 2014.
2.4 Jinlun Hot Spring Area, Taimali Township, Taitung County
The Jinlun Hot Spring area has been selected by the Tourism Bureau to serve as a
model hot spring area. It is a quintessential river valley hot spring, where spring water
is emitted from the side of the riverbed. The hot steam and gurgling river current
make it a very well known local sight. It is a weakly alkaline carbonic acid spring,
with a PH of between 7 and 8, and a water temperature between 70ºC and 90ºC. The
spring water is potable. Major tourist spots nearby include the Mount Dawu Nature
Education Center, Mount Jinzhen leisure farm area, Jinlung Hot Spring Scenic Area,
Taimali Township Aurora Garden, Sanho Waterfront Park, and the homeland of
indigenous peoples. The area is rich in aboriginal culture, with the Amis Harvest
Festival, Bunun Malahodaigian Festival, Puyuma Basibas Mangaya Festival, and
Yami Flying Fish Festival constituting distinctive events in the area.
2.4.1
Site location
The Jinlun Hot Spring Area is located in the Jinlun River delta of Taimali Township,
Taitung County. It is an approximately 40-minute drive from Taitung City and is
sandwiched between mountains to the north and south. Indigenous tribes live in the
area, and it abounds in mountain and seaside scenery. Rich in hot-spring resources,
there is plenty of scope for development and it has the right conditions for
development as a large-scale vacation resort area.
2.4.2
Project Description
The project primarily consists of a tourist hotel development and hot spring spa
facilities. It will constitute a hot spring spa facility (including hot spring spa,
hydrotherapy, and health facilities, sports facility, and hot-spring pool), recreation
and leisure facilities and other ancillary facilities (including conference rooms,
education and training center, food and beverage services, indoor entertainment,
outdoor recreation, staff housing, and service center).
17
2.4.3
Investment amount
Minimum investment of NT$700 million (not including land costs)
2.4.4
Usage rights and area
The site is located on 44 plots of land in Jinfu Section 661, Taimali Township,
Taitung County and occupies an area of 27.4799 hectares, with surface land rights
for a period of 50 years.
2.4.5
Development timetable
Bid tendered in June 2009, with contract signing by the end of 2009.
2.4.6
Promoting private sector participation in developing tourism and
leisure facilities
The Public Construction Commission under the Executive Yuan has announced
over 20 projects that international businesses can take part in from 2009 to 2012.
IV.
Investment Incentives
To promote the upgrading of Taiwan’s tourism industry and encourage foreign
businesses to invest in the industry, government agencies are offering such measures
as a 5-year business income tax offset, financing and revolving capital loans, and
subsidies to domestic hotels to join international hotel chains in order to boost the
investment willingness of foreign firms. Details are as follows:
1.
1.1
Tax Preferences
Investments made in any of the following categories specified in the Statute
for Upgrading Industries (SUI) may be applied as tax credits against the
profit-seeking enterprise income tax due that year, and any remaining unused
credit amounts may be use as credits within four years. (The Statute for
Upgrading Industries expires at the end of 2009, and will be replaced by the
Act for Industrial Innovation.)
1.1.1
Investment in automation, resource recycling, pollution prevention,
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energy conservation, reduction of greenhouse gas emissions,
improvements in energy utilization efficiency, or in hardware, software
and technology to boost corporate digital information efficacy, such as
Internet and television functions, enterprise resource planning,
telecommunication and electronic communication products, electronic,
video equipment as well as digital content production.
1.1.2
Investment in R&D and professional skills training.
1.1.3
Investment in a certain industry of a rural or urban township lacking
sufficient resources or lagging in development wherein such
investment reaches a certain amount or results in the hiring of a certain
number of additional employees.
1.2
Preferential terms pertaining to the Act for Encouragement of Private
Participation in Infrastructure Projects, such as Profit-seeking Enterprise
Income Tax exemptions and investment credits, import duty exemptions and
installment payments, land value tax, property tax and transaction tax credits
and exemptions.
1.3
Stipulations in the Statute for Development of Tourism that international
tourism promotion expenses may be used as credits against the profit-seeking
enterprise income tax due.
1.4
Regulations pertaining to Medium and Long-term Loan Financing in the
Medium and Long-term Capital Utilization Guidelines.
2.
Financing Loans
In addition, holders of tourism hotel operating licenses, hotel registration certificates,
or tourism amusement operator licenses issued by competent government agencies in
charge of tourism can apply to the Tourism Bureau, MOTC for financing loans (the
maximum amount of which for tourism amusement park operators, tourism hotel
operators, and hotel operators shall not exceed NT$300 million, and for travel agency
operators may not exceed NT$60 million; the loan amount may not exceed 80 percent
of the total cost of the project, and the loan term may not exceed 15 years in duration),
and may apply for revolving credit (the maximum amount which is not to exceed
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NT$50 million, and the duration of which is not to exceed 5 years). They may also
apply for revolving credit financing (the maximum amount of which for hotel
operators, tourism hotel operators and tourism amusement park operators shall not
exceed NT$50 million, for integrated travel agency operators may not exceed NT$10
million, and for Type I and Type II travel agency operators may not exceed NT$5
million; and the financing term may not exceed 5 years in duration).
If the financing loan funds are used for verified investment in upgrading equipment,
(re)building, expansion or rebuilding of an operating venue or renovation of a capital
funding nature, and pertain to boosting travel or lodging quality, once acquisition and
installation is complete or utilization has commenced upon completion, for tourism
industry operators regularly repaying the financing and paying financing interest, the
Tourism Bureau, MOTC will provide an annual interest rate subsidy of 1.5 percent for
up to 5 years. However, no interest subsidy will be provided for any loans other than
those pertaining to revolving credit financing.
V.
Industry-Academia Collaboration in Taiwan
Integrating the resources of government agencies and industry associations (as
enumerated in Table 5), Taiwan is actively promoting the growth of its leisure and
tourism industry.
Table 5:
Agencies and Organizations Promoting Taiwan’s Leisure and Tourism
Industry
Agency
URL
Tourism Bureau, MOTC
www.taiwan.net.tw
Industrial Development Bureau, MOEA
www.moeaidb.gov.tw
Commerce Industrial Services Portal, MOEA
gcis.nat.gov.tw
Water Resources Agency, MOEA
www.wra.gov.tw
Department of Investment Services, MOEA
www.dois.moea.gov.tw
Council for Cultural Affairs, Executive Yuan
www.cca.gov.tw
Council of Agriculture, Executive Yuan
www.coa.gov.tw
Sports Affairs Council, Executive Yuan
www.sac.gov.tw
Department of Health, Executive Yuan
www.doh.gov.tw
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Taiwan Visitors Association
www.tva.org.tw
Travel Agent Association of R.O.C. Taiwan
www.travelroc.org.tw
Taiwan Tourist Hotel Association
www.tourist-hotel-asso-taiwan.org.tw
The Hotel Association of R.O.C.
www.roc-hotel.org.tw
Taiwan Convention & Exhibition Association
www.taiwanconvention.org.tw
Taiwan External Trade Development Council
www.taiwantrade.com.tw
Footwear & Recreation Technology Research www.bestmotion.com
Institute
Source: Department of Investment Services, MOEA, June 2009
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