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Hotels in Taiwan struggling with less than 20% occupancy rates

Business picking up slowly, and industry outlook dampened by new COVID outbreaks

Grand Cosmos Resort in Hualien. (Website photo)

Grand Cosmos Resort in Hualien. (Website photo)

TAIPEI (Taiwan News) — Legislators of the ruling Democratic Progressive Party (DPP) joined hospitality industry representatives on Tuesday (Sept. 7) in pleading for more government financial assistance to prop up their failing businesses.

Local lodging businesses have suffered since Taiwan implemented Level 3 curbs amid a surge in COVID-19 cases. While the restrictions have been downgraded to Level 2 on July 27, room sales have hardly picked up.

According to a survey by the Hotel Association of the ROC, hotels nationwide logged average room occupancy rates of 18%, 21%, and 13% in July, August, and September, respectively, which are barely enough for the businesses to maintain basic operations, wrote UDN.

Legislator Hsu Chih-chieh (許智傑) said more subsidies are needed to aid the country’s accommodation industry. The bailout 4.0 package totaling NT$3.26 billion (US$118 million) for over 11,000 lodgings appears to have been ineffective in providing relief to the sector.

Major travel agencies such as Lion Travel and Colatour are reporting a revived interest in domestic travel, buoyed by the government’s stimulus plans. Meanwhile, the Taiwan Railways Administration (TRA) has resumed its cruise-style tours starting this month to woo residents who began to get itchy feet.

Nevertheless, the fresh COVID outbreak at a kindergarten in New Taipei and the confirmed delta infections amongst EVA Air crew members are casting a pall over the prospect of domestic tourism, concerned businesses said.

Updated : 2022-05-24 23:32 GMT+08:00