Features

Taiwan - Straitly Business

30 Sep 2010
Despite all the odds, Taiwan’s economy has been doing quite well. Boasting a US$414 billion economy with a population of about 32 million, its per-capita GDP and purchasing power parity may still be catching up to Japan, Singapore or Hongkong, but it is well ahead of many Southeast Asian economies. This is no small feat for an island of a modest 35,980sqkm that has been struggling to find its place on the world stage as cross-strait relations remain a delicate matter. On the other side of the waters is mainland China, 268 times of the land mass with 1.3 billion in population, which has recently risen to become the second largest economy in the world. Improved ties with the mainland have become important to Taiwan’s economic future. Because of its political status, Taiwan had no access to international arbitration in the event of trade disputes, lacked foreign investment and was left out of free trade agreement (FTA) negotiations. As a result, it has lost out on the increasingly globalised world economy. Close to one million people left the island to invest and live on the mainland, setting up companies through a third country such as the US or Bermuda. But all that is likely to change as a historic trade deal between mainland China and Taiwan took effect last month. The Economic Co-operation Framework Agreement (ECFA) removes or drastically cuts tariffs on hundreds of goods traded across the strait and eases restrictions on the financial sector. The agreement is timely for the island nation as its export-reliant economy has been hard hit by slumped demands from Europe and the US. The excitement is palpable and expectations are very high of the benefits of ECFA. Economists estimate that the agreement will add 4.5 to 5.3 percent to Taiwan’s GDP growth by 2020, while the semi-official Chung-hua Institute in Taipei says that the agreement could create 260,000 jobs within a year. For starters, ECFA puts the island on an equal footing with the South-east Asian countries, which signed the Asean Plus One free trade zone agreement with China at the beginning of the year to give a list of goods and services from the 10 member states tariff-free status. With ECFA, Taiwan, alongside Asean, has an advantage against competitors such as South Korea and Japan in penetrating the mainland market. It grants Taiwan greater access to China’s insurance, banking and financial sectors and reduces tariffs on 539 items imported from Taiwan (about 16 percent of imports from the island). The deal allows for a better integration of production between factories from the same company based on the mainland and Taiwan and will therefore create more flexibility, better utilisation of resources and increased competitiveness in certain industries. Taiwan also hopes that ECFA will be a stepping-stone to free trade talks with developed economies and help attract foreign investment. “While the government has been seeking FTA talks over the past few years, progress has been stalled by the concerns of other countries about the mainland’s response to the issue. However, many trading partners have recently been studying the feasibility of negotiating FTAs with us, given the cross-strait commitment to ECFA talks,” the minister of economic affairs Shih Yen-shiang was quoted in Taiwan Today as saying, adding that the American, European and Japanese chambers of commerce were all keen on talks. Riding on ECFA, a recent cut in corporate taxes from 25 percent to 17 percent and its outstanding role in biotech and high-tech research and development, Taiwan hopes to evolve into a global innovation centre and a trade hub with investment from countries wishing to use the island as a stepping stone to doing business with China. Direct flights between the two sides were introduced almost two years ago, ending the costly delays of having to go through a third party’s airport. There are now 370 direct flights every week to China. The number is expected to continue growing, bringing in travellers as well as business opportunities. Since Taiwan lifted a decade-long ban in 2008, an increasing number of mainland tourists have been visiting the island, lured by curiosity for a place inaccessible to them for so long. In 2009, there were about 900,000 mainland arrivals and this year, the island expects 1.2 million mainland tourists, overtaking the number of arrivals from Japan. In the past two years, mainland tourists have provided US$2 billion in revenue, notwithstanding the Taiwanese incessantly complain about the Chinese groups. The nation, which only earns 1 percent of its GDP from spending by foreign visitors, readily admits that it is not prepared for an influx of tourists. “We are probably prepared neither physically nor mentally to receive so many tourists – I mean, we don’t have enough venues,” said a government employee who requested to remain anonymous. But if that is the problem, it seems to be a happy one and solutions are already coming up. A good number of hotels are coming onboard this year, including W Taipei, Mandarin Oriental, Le Méridien Taipei, as well as the Millennium Vee Hotel in Taichung and Crowne Plaza Kaoshiung E-Da World (see Where to stay). Taipei has been expanding its exhibition and conference venues to meet the demand from large Chinese incentive groups. The city hosted 12,000 members from Herbalife last year, a 3,000-strong conference of Bayer Healthcare China earlier this year and Perfect China’s 5,000 employees in July. All of these delegates made use of the facility of Taipei World Trade Centre Nangang Exhibition Hall, which is still being further developed. In 2012, Hall 2 is scheduled to be completed after four years of work and when it is, the combined space will provide a total of area of 195,360sqm. The new central business district of Xinyi, in eastern Taipei, offers a facility that is the brainchild of Taiwan External Trade Development Council (TAITRA). The Taipei World Trade Center, opened in 1986, is a four-in-one complex designed to be a comprehensive facility for international business functions. The four structures include The Exhibition Hall, International Convention Center, International Trade Building and Grand Hyatt Taipei, and they surround Taipei 101, the city’s focal point since 2004 when it opened as the tallest building in Asia, a title it held until Burj Khalifa in Dubai opened this year. Taipei’s aviation hardware is also gearing up for the expected growth. Songshan Airport is getting a facelift and will be positioned as a regional commercial airport for business travel. The first phase of the makeover is to be completed this month and the airport, originally only for domestic routes, will be able to handle Airbus A330s and other double-aisle aircraft employed in regional flights to China, Korea and Japan. The second and third phases will be completed in March and October next year respectively. Taoyuan International Airport is getting a new terminal and a new 4,000m long runway, which will be able to accommodate the Airbus A380. Other upgrade plans include the renovation of Terminal One, currently underway, to handle more passengers and traffic, and the addition of a special area for private jet passengers in Terminal Two, in response to rapid growth in this means of travel. The aspiration is for the airport, which has dropped in rankings in recent years, to become one of the world’s top five. Currently, it takes about 40 minutes by car or 60 minutes by coach from the airport to downtown Taipei, but with the 2013 opening of the Taoyuan International Airport Line, travelling time will be cut to 35 minutes. Taiwanese President Ma Ying-jeou has expressed his desire to further cut the length of travel to 20 or 25 minutes. Things are just getting started.  

Road to Nature

Taiwan is continuously developing new destinations for the business event market While the industrialised west-coast cities such as Taichung and Kaohsiung have long been internationally known, the eastern part, with its tall mountains and rugged sea coast looking onto the Pacific Ocean, has been a best-kept secret which MEET Taiwan has only recently started promoting. It used to take rather long to visit this part of Taiwan, but travelling time has been greatly cut with the 2006 opening of the Hsuehshan Tunnel and the introduction of a high-speed rail link last October. The north-eastern coastal city of Yilan is now only 30 minutes by train from Taipei, making it the back garden of the capital city.  This has opened up great opportunities for event planners, who now have the option of adding one or two days of relaxation to a hectic schedule in Taipei and let delegates savour the many enjoyments unspoiled nature can offer. Famous for its medical hot springs, Yilan is many-faceted and has a lot to offer. Event planners can combine work with pleasure at some of the best venues here. One of the recently opened hotels here is five-star Silks Place Yilan, which features a design of clean, modern lines. The ballroom with ample natural light can seat 1,000 people in Chinese banquet style. It can also be divided up into five smaller meeting and breakout rooms to accommodation groups of different sizes. Functions can be catered for on the leafy Sky Garden terrace or even at outside locations near the hotel, such as an old brewery building five minutes’ walk away. The 193-room hotel can cooperate with sister hotel Grand Formosa Regent Taipei (www.grandformosa.com.tw) in organising bigger events. In the past, the two have hosted the 1,000-member Avon incentive programme. After meetings, delegates can relax in the 6,020sqm Sky Garden and enjoy the aqua recreational facilities. hotel Royal Chiao Hsi (www.hrjhotel.com.tw) can take a maximum of 250 people seated at 25 tables in Chinese banqueting style. This 193-room hotel, which opened in 2005, successfully hosted Herbalife Taiwan’s 200-member incentive group for meetings and a banquet. The hotel can also organise whale and dolphin watching. The waters on the east coast nurture 29 species of cetaceans, which makes this part of the world a hot spot for watching these aquatic animals. To get even closer to nature, the group can spend a couple of days in Yilan Shangrila Leisure Farm (http://shineyou.hotel.com.tw/eng/). This lovely hotel and farm brings delegates close to agriculture and tradition with a range of activities. Team building can be organised with fun programmes such as making wishing lanterns, glutinous rice balls and paper baby silkworms, as well as watching puppet shows. For more ideas, you can also turn to the local Outward Bound team (Parkview Center: 970 No 1-1, Lin-Yuen, Hualien 970, Taiwan. Tel: 03 823 6027) who are ready to organise many days of adventure for your group.

Yilan’s appeal

Turtle Island – a volcanic islet in the shape of a turtle and an excellent spot to appreciate the sunrise. Wufon waterfall – magnificent waterfalls located in Toucheng township. Jiaoshi hot springs – rare ground-level hot springs with odourless clear water. Wushih Harbour – also in Toucheng; boat operators here offer trips to Turtle Island and whale or dolphin watching. Luodong Night Market – famous for its snacks and fashionable shops; try the iced tapioca stuffed with red beans.  

WHERE TO STAY

Hotel Quote Open for just over one year, this hotel is excellent for travellers using Songshan Airport, as it is only a six- to 10-minute drive away. The 64-room boutique hotel’s guestrooms are between 22sqm and 37sqm and have a fresh, modern design. There is a pleasantly presented home kitchen providing a hub to satisfy varying needs during the day, a service centre, a restaurant, a bar and a small meeting facility. For a good place to relax, there is also an open-air rooftop bar. www.hotel-quote.com Palais de Chine This beautiful, dark and sensuously decorated hotel opened its doors in March this year with 286 guestrooms. Close to the Ximending business district and situated above Taipei’s transportation hub, Taipei Main Station, it is also within walking distance from the bus station and the high-speed train terminal. The Taiyuan Airport line will also be right on the hotel’s doorstep once it is completed in 2013. From the 30sqm Superior rooms up to the 67sqm Executive suites, there is a flat-screen TV, Wi-Fi and a media hub on offer. Four elegant food and beverage outlets serve steak (La Rotisserie), Cantonese cuisine (Le Palais), afternoon tea (Le Thé) and avant-garde cocktails (Le Bar). A Grand Hall and four multi-function rooms are available for events. en.palaisdechinehotel.com   Crowne Plaza Kaoshiung E-Da World In June this year, Crowne Plaza started business in the southernmost industrial and logistics port of the island. Although the hotel has 656 rooms, 20 multi-functional meeting venues and five restaurants, its location close to the E-Da theme park and 17km from the city centre makes it more relevant for large meetings and incentive groups than for business travellers. www.ichotelsgroup.com   Le Méridien Taipei The hotel opens in November in the Xinyi central business district (CBD), with 160 rooms and the usual sophistication, offering travellers an art experience. The hotel provides easy access to Taipei 101, shopping centres and business destinations such as banks and company headquarters. Rooms will feature floor-to-ceiling windows, LCD screen TVs and high-speed internet among others. Three F&B outlets will serve Cantonese and local cuisine, while an indoor heated pool and a health club will offer space to relax and recharge. www.starwoodhotels.com/lemeridien   Mandarin Oriental, Taipei No opening time has been set for the 300-room Mandarin Oriental, which will be situated in a mixed-use luxury lifestyle and entertainment complex. The hotel will feature four restaurants and two bars, with an expansive spa area, a fitness centre and an outdoor swimming pool. Adjacent to the hotel, Residences at Mandarin Oriental will feature 26 serviced apartments. www.mandarinoriental.com/about_mo/developments/   Silks Place Yilan The only five-star hotel in Yilan, Silks Place opened last year and is situated on the sixth to 11th floors of a complex that also houses the largest shopping mall in East Taiwan. The 193 beautifully designed rooms are grouped around five different concepts, from boutique to family and luxury holiday. The entry-level rooms are 40sqm. The sunny Mix Gourmet, The Lounge and the Red Lantern Chinese restaurants are all situated on the sixth floor. The hotel’s highlight is the Sky Garden with swimming pools and a spa. www.silksplace-yilan.com.tw   W Taipei Opening at the end of December, this new W hotel can celebrate the turn of the year in style in its 1,039sqm grand ballroom. The 405-room hotel, situated on top of the MRT’s Taipei City Hall station and the east bus terminal complex, also comprising a shopping mall, will be near the TWTC Exhibition Halls, the Xinyi CBD, Taipei 101 and a range of Shin Kong Mitsukoshi department stores. Entry level rooms start at 43sqm, going up to the 365sqm Extreme Wow Suite. There will be two restaurants, one bar, a signature W lounge called the WOOBAR, a rooftop outdoor pool and a poolside bar, a fitness centre and spa and a calendar of exclusive W Happenings. The hotel is currently training its staff to provide the Whatever/Whenever service promise. www.whotels.com

FACTS & FIGURES

 

5.4 million – the number of people who travelled between China and Taiwan in 2009

50,000 – the estimated number of Taiwanese businesses on the mainland

1 million – the estimated number of Taiwanese working on the mainland

4,395,004 – the number of overseas visitors to Taiwan in 2009, an 18.27-percent increase over 2008

953,009 – the number of mainland Chinese arrivals in 2009, representing a 200 percent increase over 2008

         
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