Fall in visits from mainland threatens Taiwan GDP
A decline in Chinese mainland tourists to Taiwan could trim the island’s GDP growth, Taiwan’s statistics agency has warned.
If the number of mainland tourists to Taiwan declines 10 percent this year, the island’s service revenue would shrink by NT$17.8 billion (US$560 million), according to the Directorate-General of Budget, Accounting and Statistics. This would shave about 0.1 percentage points off GDP.
The estimate is based on figures showing that last year each tourist from the Chinese mainland spent an average US$228 a day during a seven-day visit.
Last year, about 3.44 million visitors traveled to the island from the mainland as tourists, representing about 80 percent of all visits from the mainland. Other visitors traveled for reasons that included study and business.
The statistics agency called for close attention to the decline amid a lackluster growth outlook for the island.
The number of mainland tourists has plummeted since Taiwan’s leader Tsai Ing-wen took office in May.
Agency data showed that the monthly decline had widened from 10 percent in May to 36 percent in August.
An agency official said indirect economic losses brought about by the decline were still being calculated. The island’s economy increased a seasonally adjusted 0.23 percent quarter on quarter in the second quarter. Year on year, GDP grew 0.7 percent over the same the period.
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