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《TAIPEI TIMES 焦點》 Travel firm folds amid cross-strait slowdown

2016/08/25 03:00

By Shelley Shan / Staff reporter

A Taiwanese travel agency that specialized in arranging tours for Chinese travelers went bankrupt yesterday, the first bankruptcy in the travel industry since the Democratic Progressive Party (DPP) administration took office on May 20.

The Tourism Bureau said that A Plus International Travel Service Co (創世紀國際旅行社) had bounced checks totaling NT$2.33 million (US$73,335) as of Tuesday, adding that the whereabouts of its chairman was unknown.

The bureau and the Travel Quality Assurance Association made a joint inspection of the agency, during which the firm’s chief executive officer said that it would not be able to continue operations.

The firm was ordered to suspend business immediately, it said.

The bureau said that A Plus was to pay a NT$1.2 million bond and it would lose its license if it failed to pay with 15 days.

The agency had eight Chinese tour groups in Taiwan, it said.

Travel Agent Association spokesman Ringo Lee (李奇嶽) said that A Plus was not the first bankrupt agency the association has handled, while the groups visiting Taiwan would be able to continue their tours.

The government should see A Plus’ bankruptcy as a warning, Lee said, adding that a watch should be maintained to see whether the industry suffers a domino effect.

Lee said that about 400 agencies in Taiwan are licensed to arrange tours for Chinese tourists, while a large part of the business is handled by the top 30 percent, which are financially viable.

“The question that should be asked is how much longer can firms last if their business continues to shrink,” he said, adding that financial problems facing travel agents would also affect hotels, restaurants, amusement parks and bus companies.

Although the government has proposed attracting more tourists from Southeast Asia and encouraging travelers to stay in Taiwan for longer as ways to salvage the tourism market, Lee said that tour operators would need two to three years to transition to the new business model, during which many would have to fold.

“The government needs to maintain at least as many Chinese tourists as there were before so it can send visitors to all parts of the country,” he said. “While the government is busy attracting tourists from new, but smaller countries, it must not forget to solidify a larger number of Chinese visitors.”

Lee said that political leaders on either side of the Taiwan Strait need to show more goodwill toward each other and seek ways to communicate.

Taipei Hotel Association chairman Chiu Lofen (邱樂芬) said that several mid-range hotels are seeking buyers because of the decline in Chinese tourists.

Hoteliers are pinning their hopes on a rise in tourism from South Korea and the Summer Universiade next year, Chiu said.

Hwang Cheng-tsung (黃正聰), an associate professor in the Department of Tourism at Providence University, said that stagnant cross-strait relations and the tour bus fire on July 19 have contributed to a decline in entry permit applications by Chinese tourists since last month.

The number has dropped from 12,500 per day to about 6,000 per day, he said.

Despite the decline in entry permit applications, Hwang said that Chinese tourist numbers increased by 3 percent from January to June, whereas inbound tourists from other countries grew by an average of 13 percent.

The bureau is confident that this year’s goal of 10.75 million international tourists can be reached, he said.

“I am concerned about central and southern counties, as a majority of Chinese tourists visit attractions in those areas,” Hwang said.

“Those areas would probably be affected the most by a decrease in Chinese tourists,” he said.

新聞來源:TAIPEI TIMES

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