600 hotels throughout Taiwan are looking for sale? A shuffle in the hotel market is just on the go
2017-09-30 16:10:20
Extracted from China Times
Sept. 26, 2017
Mainland China tourists are not coming and hotels are crying for sale? Beginning this year, at least 600 hotels throughout Taiwan are said to be selling off, seemingly an unstoppable tide of resale. The trend of investing in the hotel industry since 2008, the commencement of Taiwan’s Open-Door Policy to mainland tourists, has boosted an increase of tourism hotel rooms by 6,000 to reach 28,000 rooms and general hotel rooms by 46,000 to reach 152,000 rooms, but the upcoming new tourism hotel rooms, amounting to 14,000, account for half of the existing tourism hotel rooms. The average operational condition of the tourist hotels in Taiwan bears market impact, resulting in a gradual slide of the average rate of occupancy from 72% in 2014 to 67% in 2017.
Sept. 28, 2017
With a great decrease of mainland tourists in Taiwan, the DDP government is taking a proactive measure of New Southbound Policy. Following the “Taiwan Tourism Development Forum” held yesterday, Yong-dian Liao, GM of Hwafu Tourism Group – one of the first two leading travel agencies, pointed out that “The low consuming power of the countries from New Southbound Policy has severe impacts on the tourism industry chain. Rumors spread that the big two HongKong-funded shopping sites with serial losses are considering closing their businesses in Taiwan, which may cause a sharp rise of unemployment in the tourism industry.”