Tourism industry in Taiwan’s Kenting suffers serious downturn | Taiwan News

TAIPEI (Taiwan News) — Tourism in Taiwan’s Kenting continues to suffer, with many warning that the hospitality industry in the previously popular vacation destination may have difficulty recovering in the years ahead. 

In early September, a group of hotel operators revealed that during summer 2024, rooms had the lowest occupancy rate for Kenting in 27 years at around 50%, reported SETN. Some called it the local tourism industry’s worst summer season in history. 

Commentators and netizens have discussed reasons for Kenting’s troubles in recent weeks. On Sept. 25, Yeh Kuang-shih (葉匡時), transportation minister from 2013 to 2014, discussed the issue on a podcast and outlined four primary reasons for tourism’s decline in Kenting. 

The first major reason is the lack of Chinese tour groups, which were a major source of income for Taiwan’s hotel industry for over a decade. Yeh said that during his time as minister, Taiwan saw around 10 million Chinese tourists annually.

Restrictions on Chinese tour groups were introduced during the Tsai administration, which cut into an important income stream for Kenting businesses. Since the COVID-19 pandemic in 2020, Chinese tour groups have essentially disappeared, with many hotel and restaurant operators struggling to return business to pre-pandemic levels. 

The second factor is that Kenting is often seen as an out-of-the-way destination for foreign visitors in Taiwan for a short period. While the number of foreign tourists has rebounded since the pandemic, the majority do not venture far from Taipei.

Similarly, Yeh said the third and fourth reasons are the relatively high cost of lodging and the long distance for domestic travelers. When total expense and travel time are calculated, Kenting is falling behind the attractiveness of other destinations for residents of central, northern, and eastern Taiwan.

During the podcast, Yeh said that Taiwan and Kenting failed to take advantage of the opportunities presented by the epidemic. He said more coordination between the government, local businesses, and tour operators is required to create a distinct brand image for Kenting.  

In addition to these systemic problems, some have cited the summer’s exceptionally high temperatures and associated operational costs as factors. Higher electricity bills have resulted in higher booking fees and fewer customers, per Mirror Media.

Another reason cited by hotel operators was the relatively low number of public holidays in 2024. This resulted in fewer company trips. 

Lastly, major trends in regional tourism present a new, potentially longer-term problem for Kenting’s tourism industry to consider. With the increasing number of low-budget, direct flights to other tourist hubs in northeast and southeast Asia, many Taiwanese travelers find the cost differences between a short trip abroad and a trip to Kenting negligible.