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    China Business
     Aug 31, 2006
The Chinese (tourists) are coming!
By Ting-I Tsai

TAIPEI - Representatives of Taiwan and mainland China will sit down at the negotiation table as early as mid-September to decide on opening the island to tourists from the mainland, a possible breakthrough that will lift the decades-long ban after years of back-channel talks.

However, travel agents in Taiwan remain cautious, having experienced years of disappointments. Many are also concerned



whether the industry has the self-discipline to avoid vicious competition through price wars that would damage the quality of services.

"They have been talking about this so many times. I am not sure if things will come true this time," said Wang Jie, manager of Kaohsiung-based travel agency Chang Ku. Tsai Feng-lung, section director of Taipei-based Richmond Tours, further noted that "politics create a lot of uncertainties".

As things stand now, some 365,000 mainlanders are expected to visit Taiwan annually once the current ban is officially lifted - 1,000 per day.

Hotels, meanwhile, are gearing up to meet competition. Some 46 new hotels, including 36 international tourist hotels, are under construction or planning to expand.

Because of concerns over national security, the Taiwanese government has set high criteria for local travel agencies interested in engaging in the mainland-origin tourism business. Only those travel agencies that have been in business for at least five years and have paid a NT$1 million (US$30,390) deposit are eligible to participate. Currently, 121 Taiwanese travel agencies qualify.

Tourists' overstaying their visas - the duration is four-10 days - in Taiwan will lead to the temporary suspension of the agency's mainlander business, anywhere from one month to one year, depending on the number of the overstayers.

To control service quality and reduce national-security risks, Taiwan's Tourism Bureau has designated 10 routes for the Chinese tour groups to follow, and has categorized prices into three levels based on the rating of the hotels. Five-star-hotel tours will cost about US$120 per day and three-star ones will be about US$80 per day.

Believing that tourists from the mainland are really coming, Phoenix Tour, one of the leading travel agents in Taiwan, has already expanded its inbound service section. Liao Wen-chen, chief executive officer of Phoenix, said his goal is to handle 10,000 mainland Chinese tourists each year; his company will focus on five-star services.

Taiwan started planning to open up to mainland Chinese tourists in 2001. However, negotiations bogged down as there are differing opinions on how to conduct the actual process. Taiwan hoped to keep shifting the channel back to government-to-government, but Beijing insisted on non-governmental dialogues.

Finally, after years of back-channel interactions, mainland China founded the Cross-Strait Tourism Association, and Taiwan followed the move by founding the Taiwan Strait Traveling and Tourism Association last Sunday. Though ostensibly a private organization, the process is still dominated by the governments.

Taiwan's Mainland Affairs Council (MAC) said the two sides will mainly focus on non-political technical issues, including the verification of Chinese tourist identities, the repatriation formula for absconding tourists and the treatment of travel disputes. Once agreements are reached in these areas, the associations will deal with the details.

Hsu Wen-sheng, director of Taiwan's Tourism Bureau, reportedly said that bureau deputy director general Lai Se-chen will represent Taiwan, and Zhang Xichin, deputy director of China's National Tourism Administration, will be her counterpart. But, MAC said, there's no final decision on the negotiation's location and timetable.

Meanwhile, Taiwan is busy planning on creating a mechanism that will allow mainland Chinese tourists to exchange the yuan into the Taiwanese currency after their arrivals.

The Taiwan side calculates that the time for reaching a decision is propitious, Beijing might be too busy to deal with the issue next year because of the Chinese Communist Party's 17th Congress. Therefore, the upcoming months should be a good time for Taiwan to settle the tourist issue, said an MAC official.

Beijing currently allows its citizens to visit 81 countries. Some 36 million Chinese are estimated to have ventured overseas since China started to allow its citizens freedom to travel in 1983. Taiwan, meanwhile, is still not one of the 81 approved destinations, thereby making it illegal for mainland Chinese tourists to visit Taiwan.

Optimistically planning a banquet to welcome the first Chinese tour groups, Sean Chuang, chairman of Taiwan's Leofoo Group, which owns the Westin Taipei and is also a board member of the newly founded association, is delighted to see Taiwanese authorities move on this matter.

"Things will be easier after the two associations are established," he said, noting that he believes the first tour group from the mainland could set foot in Taiwan as soon as the end of this year.
Ting-I Tsai is a freelance writer based in Taipei.

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