The Development of Bed and Breakfast (B&B) Accommodation in Taiwan

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1 The Development of Bed and Breakfast (B&B) Accommodation in Taiwan Kun Shan University Applied English Department Instructor: Conrad Karl Markiey Students:Hsiang-Ping Hu (Tracy) Chia-Chi Tsai (Maggie) Wan-Hsin Ding (Emma) Yu-Chin Hsu (Ann) Wei-Hao Ho (Gil) January 2006

2 2 Preface In recent years, the media in Taiwan has reported lots of information about tourism sights and Bed & Breakfast (B&B). These new and developing B&Bs are not similar to past ones. The new types not only offer accommodations and rooms but offer different kinds of tour plans or advice according to the B&Bs geographical position and time. B&Bs in Taiwan are thought of secondly by people, because they usually consider staying in hotels instead of B&Bs unless the hotels are sold out. In fact, B&Bs are universal in Europe. But in Taiwan, people have paid attention to them in recent years. Because Taiwan s economy is growing fast, citizens income also is becoming higher and higher. People begin to attach importance to their recreation activity, especially before the two weekly holidays. They really care about their outdoor activities. For this reason, B&Bs have become more important now. There are five kinds of B&Bs: they are aborigine tribe, area of agricultural products, natural ecology experience, cultural art and characteristic of landscape. Our group will analyze the marketing and promotion technique of selected B&Bs. We will also discuss the comparisons and dependence with the network, books and magazines.

3 3 Table of Contents 1. Introduction Content A. Bed and Breakfast in Taiwan i. The definition of Bed and Breakfast 6 ii. The development of Bed and Breakfast 6-7 iii. The type of Bed and Breakfast 7-8 iv. Bed and Breakfast in famous resorts in Taiwan 8-9 B. The promotion and marketing of Bed and Breakfast i. Promotion 9-11 ii. Marketing C. The statistics and the analysis of Bed & Breakfast in Taiwan 12 i. The statistics of B&B by Taiwan Tourism Bureau, M.O.T.C. Republic of China 13 ii. The questionnaire of B&B in Taiwan- Chingjing area of Nantou a. The proprietors business situation b. The situation of tourist s accommodation-shangrila Hanging Garden & Resort Conclusion Appendix Reference 23-24

4 4 Introduction Because to get information about tourism sights is easy, Bed & Breakfast (B&Bs) have become more important. We usually stay in hotels when we travel. But, there are more and more people who travel on holiday. Hotels are always sold out on these days, so people must stay in B&Bs. That is why we think B&BS are becoming more important. They are just like bamboo shoots after a spring rain. In our past experience, B&Bs were cheap, old, and simple. But now, B&Bs have some changes, having websites, better rooms, and good services. They also offer convenient travel plans and discounts. In addition, our country s economy is getting better and causing our income to be more than in the past. People even travel every week or month. They want more choice about loading information, so they choose B&Bs. First, we will introduce B&Bs definition, development, types and famous resorts. Secondly, we will discuss promotion and marketing of Bed and Breakfasts. Finally, we will present the statistics and the analysis of Bed & Breakfast in Taiwan. In the first part, we will show that B&Bs have five types: aborigine tribe, area of agricultural product, natural ecology experience, cultural art and characteristic of landscape. The second part contains discussion of promotion and marketing. We present some ways to promote their business, such as coupons with travel magazines or books, an arranged travel plan so that customers do not worry about their route, and group discounts so that the trip is cheaper. Marketing also plays an important role for business. We present about two ways to improve and increase their business. For example, a B&Bs could set up a website to let people know their location, price, and types of rooms and offer to reserve rooms on-line. B&Bs also use press, newspapers,

5 5 radios, TV ads and magazines to make themselves well known. Finally, we have surfed the internet and compared some B&Bs. All three parts will be mentioned again and clearly in our paper.

6 6 Content A. Bed and Breakfast in Taiwan i. The definition of Bed and Breakfast Bed and Breakfast is usually called B&B. It offers travelers places to put up for the night. Generally speaking, the main difference between the B&B and the hotel is the B&B gives guests deep friendliness and warmness just like at home. In Taiwan, Bed and Breakfast is getting more and more popular. According to Regulations for the Management of Home Stay Facilities (2001) 1, B&B is to make use of the spare rooms of a personal house and offers travelers accommodations. These kinds of accommodations operate as domestic sideline occupations and combine with local cultures, natural landscapes, ecotourism, environmental resources, and the productive activities of agriculture, forestry, and animal husbandry. Many savants state the definitions of Bed and Breakfast by distinct viewpoints. In an aspect of operation, Hui-Pin Lo (1995) 2 thinks B&B belongs to the hotel business. The B&B is different from the hotel. The host of a B&B can not only know and communicate with travelers but let travelers enjoy the regionalism and the perception of home. ii. The development of Bed and Breakfast In 70s, Alishan and Sitou had become well-known for B&Bs. During the weekend or the winter and summer vacation, many sightseers come to visit. In order to solve the problems of accommodation, the residents provide their extra rooms that were rebuilt to those travelers make more comfortable. In addition, the inhabitant can 1 Executive Information System 2 Dissertation and Thesis Abstract System.

7 7 increase their income and make new friends. In recent years, Taiwan s B&B have risen rapidly. However, different areas have different styles and features that are called characteristic B&B. Nowadays, more and more proprietors need to create new ideas to attract tourists; consequently, operating the business by using specialized knowledge becomes an important factor. That decides the business succeeds. Some of the owners use the media, newspapers, and magazines to increase their celebrity rating. In this modern society, people value weekends more than before, and most of them think going outside to relax would increase their work effects. For this reason, B&B s position and role have changed. A few years ago, a B&B was the last choice when the hotels were all booked out in the scenic spots. Today, if the tourists do not to make room reservations in advance, they will have trouble because there is no room available. iii. The type of Bed and Breakfast Tsai-yun Chen (2002) 3 classifies Taiwan B&B according its geographical feature and characteristic. It includes aboriginal village, agricultural products, natural ecology, art culture and landscape features. Traveling is beloved of all kinds of people, and peculiar geographical features always attract considerable tourists. For example, Kenting is the type of nature ecological and Guanjzling belongs to landscape features. The government set up a national park in Kenting, and it is a paradise in southern of Taiwan that has rare corals and plants 4. In Tainan County, Guanjzling has a kind of hot springs - mud hot springs. In the world there are only three locations having mud hot springs, which are Kagoshima in Japan, Sicily in Italy and Guanjzling in Tainan County. 3 Dissertation And Thesis Abstract System. 4 Mary-Anne Sioco, Kenting Havens. Travel in Taiwan, May/June 2005: 20-22

8 8 In Taiwan, people attach great importance to humanism. Aboriginal culture and historic significance has become valued in recent decades. There are eight villages in Ping-Dong Country; however, there are only two major aboriginal clans: Paiwan and Rukai. All of them belong to a type of aboriginal village. Aborigines run spread their inherent culture and popularize sightseeing. Besides, proprietors plant fruits or vegetables near their B&B and they combine B&B business with farm development. As an example of art culture, Kinmen has preserved much of its traditional island culture and there are many old towns and villages with temples and residences built in traditional style 5. Wind Lions is the most symbolic in Kinmen which give the people of the islands comfort. More and more tourists choose to go there for studying. The other type of B&B is agricultural products. In this kind of B&B, some proprietors focus on their specialty or special product of the place or area, and some offer experience in person. For instance, Huang-Ching fruit farm in Chingjing is a grange. The host plants all kinds of fruit and runs an orchard. Besides this fruit farm, there are many tea plantations in Alishan, and various pastures open in eastern Taiwan. iv. Bed and Breakfast in famous resorts in Taiwan In recent years, national income is getting higher and the government provides two holidays a week in Taiwan. In addition, Taiwanese have changed their point of view about their leisure time, and they are willing to join and invest in the tourism business. What is more, the growing number of B&Bs has showed that B&Bs stimulate the Taiwan tourism industry. Therefore, Taiwan Tourism Bureau, M.O.T.C Republic of China, dedicated this situation to start B&B s development and calculate 5 Kinmen: memories of Hot War, Cold War, and Hardship Travel in Taiwan, Sept./Oct. 2005: 22-25

9 9 the number of B&B per month. From Appendix A we know that the number of lawful B&Bs has grown from 347 in 2004 to 1194 in Those B&B have their own characteristic styles, inclusive of features of the aboriginal village, nature ecological, art cultural, agriculture products and landscape features. (Tsai-yun Chen 2002) 6 From computation of Taiwan Tourism Bureau, M.O.T.C Republic of China, the most number of lawful B&B is Nantou County, the second is Hualien County, and the third is Yilan County. Finally, the fourth and fifth are Taitung County and Miaoli County. The development of B&Bs not only increase Taiwan s tourist industry but also help Taiwanese have a more intimate acquaintance with the native country they live in. B. The promotion and marketing of Bed and Breakfast i. Promotion In Taiwan, Bed and Breakfast becomes more and more popular. The owners of B&Bs have some special commercial ways to push ahead with their businesses in recent decades. Certainly, sales promotion cannot only easily catch customers attentions, but also obviously attract tourists coming. There are several means of sales promotion. The proprietors usually offer coupons or package schedules for tourists. What is more, they may also give a discount to group travelers. A successful sales promotion is very important to the B&B. It can bring a large fortune for the owners of a B&B and help to bring prosperity for the local economy. The coupon is the most common and the easiest way that tourists can get promotions on the Internet and in tourist magazines. Especially in this modern society, many people like to surf the Internet to search the information when they 6 Dissertation And Thesis Abstract System.

10 10 want to have a journey. To make good use of coupons that a B&B offers will greatly benefit a traveler and reduce his expenses. For example, in Kinmen, Breeze and Waves B&B 7 provides coffee coupons if customers lodge there. Besides this, there are various coupons that the B&B supplies, such as hot spring coupons, amusement park coupons and housing coupons. Another way of sales promotion that is often seen is the package journey. On many websites, the owners of B&Bs lists diversified package schedules for referral. The main reason that these schedules are recommended is that of local characteristics. The host of a B&B always combines cultural heritage with geographical features, and then arranges a series of schedules. Therefore, travelers do not worry about their itinerary. For instance, The Cactus B&B 8 in Kenting maps out the activities very well for tourists. The host of the B&B schedules the route from morning to evening. Therefore, travelers can have fun readily. In addition to Kenting, a B&B in Nantou also suggests tourist scenic spots nearby. It also has travel service and a tour guide. Deserving to be mentioned, the B&B such as The Dream House 9 of aborigines in Wu-tai provides a special package which includes a night stay and two meals for only $1700 dollars. Offering discounts can create many more commercial opportunities. Many proprietors are willing to discount the price for group customers. To go or travel in a group could usually save much money for the trip. For example, if two people go traveling together, they may have 20% discount. Some B&Bs also encourage customers to invite their friends to go. For instance, in Green Island, every B&B Lin, Yu-She, Cactus B&B Taiwan Play, October 2002: Yu, Co-Hsin, Dream House Taiwan Play, May 2002:82-86

11 11 has several tourist schemes. The Cat House 10 is one B&B. It plans three programs which include a different amount of people and days. The more people join the activities, the less price every member would pay. Group traveling has alluring discounts and so it is so popular in season. ii. Marketing Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer. In addition, all marketing decisions should revolve around customer issues; consequently, the influential factor that determines whether or not the business succeeds is marketing. Nowadays, we know that the many Bed and Breakfasts that have spring up in Taiwan have caused the market to become more sharply competitive. Most of travelers concerned about the quality and evaluations, however, how to attract tourists to come to the place is the main point that the owners need to solve. Here are some ways that innkeepers use to solicit customers. The internet setting is the most common and popular technique in this modern society. A website introduces a B&B s business concepts, the environment and the price; therefore, sightseers may get more information about that B&B. Sometimes the B&B owner will insert special local activities that invite people to join with them. Huang-Ching fruit farm 11 in Chingjing is using this way to promote their business. Besides, most B&B have cooperated with the government, such as Taiwan Tourism Bureau, M.O.T.C. Republic of China 12. Taiwan Country Lodging 10 Cat House 11 Huang-Ching fruit farm 12 Taiwan Tourism Bureau, M.O.T.C. Republic of China

12 12 Association 13 is another lawful association. Both of them have provided many legal B&B s brief introductions and evaluations. They are trustworthy because of their guarantee, so the people do not worry about being duped. Increasing the public awareness is another way to expand a Bed and Breakfast s business; therefore, the media, newspaper, and magazines are the best methods to use. Guanjzling in Tainan County has mud hot spring that only three places have. For this reason, several newspaper offices report the B&Bs in Guanjzling 14 that have good service and newfangled style. Undoubtedly, their businesses get better than before. Looking for a quaint or unusual B&B would tempt a TV station to report it. Kinmen 15 has a traditional island culture and there are many old towns and villages with temples and residences built in traditional style. One its B&Bs 16 because of its architectural design and excellent quality of granite became very popular. Moreover, it is the biggest and most complete quadrangle in Kinmen, so that many TV stations have striven strive to be the first to report this news to its audiences. C. The statistics and the analysis of Bed & Breakfast in Taiwan With the implementation of the two-day-off weekend, living quality has improved, and demand for leisure activities has also increased. People have more and more chance to travel. The manner of traveling trends variety and the accommodation experience becomes gradually more important. In recent years, because the price of a B&B is rational and the environment can make people relaxed, B&Bs have became 13 Taiwan Country Lodging Association 14 Guanjzling B&B 15 Kinmen: memories of Hot War, Cold War, and Hardship Travel in Taiwan, Sept./Oct. 2005: Shin-he hostelry

13 13 more popular than hotels. Therefore, most B&Bs are distant from cities and near the scenic areas. Because of these reasons tourists choose B&Bs to rest. Consequently, many people have auxiliary an occupation by running B&B. i. The statistics of B&B by Taiwan Tourism Bureau, M.O.T.C. Republic of China According to the statistics by Taiwan Tourism Bureau, M.O.T.C. Republic of China 17 (see Appendix A), there were 1,775 B&Bs in January and 1,848 B&Bs in October in Taiwan, The data exhibits B&Bs are developing gradually. From the form, the number of applications is 1,240 in October, Accordance with Regulations for the Management of Home Stay Facilities 18, the number of lawful B&Bs is 1,126(90%) and number of lawful rooms is 4,606(4.09 per B&B). In addition, there are almost no B&Bs in cities in Taiwan. Thus it can be seen most proprietors choose suburbs that are near the famous tourist spots to run a B&B. From the form, it also can be seen that Nantou County has the most B&Bs in Taiwan. ii. The questionnaire of B&B in Taiwan- Chingjing area of Nantou Nantou, which is located in the middle of Taiwan, has many scenic resorts. Many people travel and stay there for one or two days. Consequently, some people invest in accommodation in Nantou and Bad & Breakfast is the most popular. According to the statistics by Taiwan Tourism Bureau, M.O.T.C. Republic of China, there are 195 lawful numbers (24%) of Taiwan s B&Bs in Nantou County. The statistics exhibits that B&Bs are rising and flourishing in Nantou County. a. The proprietors business situation 17 Relative Statistics 18 Dissertation And Thesis Abstract System.

14 14 We selected The Development of Tourism in Chingjing (1995) 19 to analyze B&B s owners in Nautou County (see Appendix B). There are 40 proprietors of B&B in Nautou help the searchers to answer questions. In the building style of B&B, the survey shows that the most proprietors choose the style of Europeanism (53%). By the way, according to the article six of Regulations for the Management of Bed and Breakfast that a business registration certificate may be issued to a home stay facility with specific tourism features that has an operating scale of no more than 15 guest rooms. Therefore there are 47% of B&B proprietors following the regulation and set within 10 rooms. In response to the space facilities, the large majority of participants think their facilities are enough to offer tourists. That is because they hold a large amount of land and few rooms. 57% proprietors consider summer time is the high season, and 38% of them think that s winter time. That is because in summer and winter time people always have vacations to travel around. On this mountain they can go away for the heat in the summer and enjoy the scene of snowing in the winter. On the other hand, most proprietors offer a meal, breakfast for the most part. Furthermore, 73% considered that their B&Bs are balance between the income and expenditure. The proprietors express that most owners who are in benefit always carry on their business for over three years. However, there are many competitors nowadays, so that a small number of proprietors face the condition of more expenditure than income. b. The situation of tourist s accommodation_ Shangrila H.G.R. We select the case study of Visitor s experience toward home stay facility (2003) to analyze the visitor who rests in a B&B there (see Appendix C). This is a survey for the tourists of Shangrila H.G.R. to explore their experience in lodgment. According to the data, 78.5% tourists would make a reservation and 21.5% of them 19 Dissertation And Thesis Abstract System.

15 15 would not. 35% tourists got information of Shangrila hanging garden & resort from relatives and friends commendation, 24.1% from experience, and 18.2% from ad media. It shows the strategy of relatives and friend s recommendation and former customers is the main point of B&B s exploitation. 45.5% tourists choose to lodge with their friends, classmates or companies, and 40.9% tourists come with family and relation. To consider the reasonable lodgings expense, each person spends dollars per day (41.9%) and 33% tourists spend dollars. For room style, 59.7% tourists choose a suite room and 33.3% choose family style. For a construction style, the majority is foreign construction (47.5%), and 40.6% in the log cabin style. According to the statistics could be the reason why tourists choose Shangrila hanging garden & resort.

16 16 Conclusion In conclusion, the Bed and Breakfast is a new and developing line of business, and the speed of development of B&Bs is faster than hotels. They do not need too much funding and the scales are much smaller than hotels. B&Bs are just like small hotels, the manpower is easy to get and sometimes, the staffs are also the owners themselves. In addition, the statistics and the analysis of B&Bs in Taiwan show why we think the speed of development of them are faster than hotels and it also enhance the information collected in this study.

17 17 Appendix A The Registration of B&B for each county government (January, 2005) country The number of present B&B The number of application The number of lawful B&B The number of lawful rooms Taipei City Kaohsiung City * * * * Keelung City * * * * Hsinchu City * * * * Taichung City * * * * Chiayi City * * * * Tainan City * * * * Taipei County Taoyuan County Hsinchu County Miaoli County Taichung County Nantou County Changhua County Yunlin County Chiayi County Tainan County Kaohsiung County Pingtung County Yilan County Hualien County Taitung County Penghu County Kinmen County Lienchiang County Total

18 18 The Registration of B&B for each county government (October, 2005) country The number of present B&B The number of application The number of lawful B&B The number of lawful rooms Taipei City Kaohsiung City * * * * Keelung City * * * * Hsinchu City * * * * Taichung City * * * * Chiayi City * * * * Tainan City * * * * Taipei County Taoyuan County Hsinchu County Miaoli County Taichung County Nantou County Changhua County Yunlin County Chiayi County Tainan County Kaohsiung County Pingtung County Yilan County Hualien County Taitung County Penghu County Kinmen County Lienchiang County Total

19 19 Appendix B The Development of Tourism in Chingjing (1995) Building style Room 53% 5% 3% 39% other European Japanese American 11% 16% 26% 47% 1~10 11~20 21~30 over 31 Space facilities High season 10% 90% enough not enough 38% 3% 2% 57% summer winter spring autumn Meal offer Income condition 3% 97% yes no 15% 73% 12% benefit balance deficit

20 20 Appendix C Visitor s experience toward home stay facility (2003) Make reservation 21% yes no 79% B&B information from Have rested before advertisements 3% 12% 3% 5% 24% relatives and friends commendation sponsor of group 35% 18% Finding by self in the locality From commendation of other B&B other

21 21 Companion 1% 1% 1% 3% 8% alone classmates, colleague, friends family,relation 41% 45% company, school activity tour group,social organization other Constructional style 5% 2% 1% 4% Chinese construction (three-section compound) Foreign construction Log cabin style 41% 47% Aboriginal construction (stone or bamboo house) Cement and brick house Others

22 22 Room style 33% 6% 1% suite room family style 60% wide bed for several people other Response lodgings expense 0% 15% 5% 5% 33% under 500dollars 501~800 dollars 801~1100 dollars 1101~1400 dollars 42% 1401~1100 dollars over 1700 dollars

23 23 References Cheng-tian. Survey Report on Visitors Expenditure and Trends in Taiwan. Taiwan: Tourism Bureau, Ministry of Transportation and Communications, Republic of China, This book introduces visitors expenditure, and the accommodation is one part of the visitors expenditure. Greenisland Cat House, Ya-Pu Information. 7 January This website introduces a B&B in Greenisland. National Central Library, Dissertation and Thesis Abstract System. 1/9/1997. Fei Tzu Te Information. 13 December This website can help researchers to look for periodicals and thesis in it. Wang Sih-wun. Wu-Tai B&B village, Visiting Taiwan Guidebook (Ping-dong). 31 October 1994:2-3 It introduces the special B&B in Wu-Tai and let tourists more realize about the B&B there. Syue-lao Zhang. The Brief Introduction of Hot Spring Hotel in Taiwan. Taiwan: Tourism Bureau, Ministry of Transportation and Communication, Republic of China, This book introduces Hot Spring Hotel and B&B in Taiwan, and describes their

24 24 characteristics of each Hot Spring Hotel. Tourism Bureau, Ministry of Transportation and Communication. R.O.C. Kenting Havens Travel in Taiwan No.9 May/June 2005: The periodical introduce popular scenic spots and special food in Southern Taiwan Tourism Bureau, Ministry of Transportation and Communication. R.O.C. Kinmen Travel in Taiwan No.11 September/October 2005: The periodical let the readers know offshore islands of Taiwan, such as Penghu, Kinmen, Mazu and Greenisland. The development research plan about sightseeing industrial of Taiwan area. Taiwan Tourism Bureau, Ministry of Transportation and Communication Republic of China, There are statistics of the B&B around Taiwan in this book.

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