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1 TAIWAN Overview Taiwan was BC s 12 th largest international market in terms of direct customs entries in 2010 and Taiwan was Canada s 18 th largest market in 2010 and In 2011, Taiwan accounted for 5% of BC s Asia/Pacific entries and 4% of Canada s Asia/Pacific entries. These proportions remained stable compared to visitor market profile JULY 2012 Top countries to BC (2011) USA overnight 1 Germany 7 United Kingdom 2 Hong Kong 8 Australia 3 Mexico 9 China 4 Philippines 10 Japan 5 India 11 South Korea 6 Taiwan 12 Source: Statistics Canada The market at a glance Outbound travellers from Taiwan (2010) 9.42 million Population (2010) million Direct customs entries to BC (2011) 38,886 Unemployment rate (2010) 5.2% BC s share of Canada s Taiwanese custom entries (2011) Taiwan as a share of BC s total international customs entries (2011) Asia/Pacific as a share of BC s total international customs entries (2011) Taiwan as a share of BC s Asia/Pacific customs entries (2011) 68% Real GDP (2010) $841.2 billion US 1% GDP growth (2010) 10.9% 19% GDP growth (2011) 4.8% 5% Forecasted GDP growth (2012) 4.6% Sources: Taiwan Tourism Bureau, Statistics Canada, CIA World Factbook, Taiwan National Statistics Taiwanese overseas travellers Over 9.4 million Taiwanese nationals travelled out of their country in Outbound travel had decreased 6% in 2008 and 4% in 2009, and then rebounded in 2010, growing by 16%. In 2011, over 57,000 Taiwanese travelled to Canada and 71% entered directly through British Columbia. Overall, Taiwanese entries to Canada have decreased 45% between 2002 and While entries to BC decreased 6 over this period, entries to other parts of Canada increased by 124%. Sources: Taiwan Tourism Bureau, Statistics Canada 150, ,000 50,000 0 Taiwanese overnight customs entries ( ) Rest of Canada BC Page 1

2 Visitor characteristics In 2007, nearly six-in-ten Taiwanese visitors to Canada were female (57% female versus 43% male). In 2010, the split had evened out slightly, although there continued to be more female travellers (54% female, 46% male). The average party size for Taiwanese visitors declined slightly between 2007 and 2010 (1.8 to 1.5). In 2010, twothirds of Taiwanese visitors travelled alone (up from 56% in 2007). In 2007, 3 travelled in groups of two, which declined to less than a quarter in A quarter of Taiwanese travellers in Canada were young adults aged 20 to 34 years. Within this group, eight-in-ten were 25 to 34 years of age. The proportion of middle-aged adults grew substantially from 22% to a third of travellers in Fewer older adults (55+ years) visited Canada, down from 24% to 16% in Trip characteristics In 2010, Taiwanese travellers to Canada (who also visited BC) spent most of their trip in BC (19 nights in Canada, 18 in BC). Average trip lengths increased four and five days for Canada and BC respectively. In 2007, one to two weeks was by far the most popular trip length (47% of travellers). Since then, Taiwanese travellers had a wider range of trip lengths including shorter and longer stays. In 2010, 7 of Taiwanese travel to Canada occurred during May to October; the other 6 months accounted for only 3 of visitation to Canada In Canada 6 4 In BC Travel party size (2010) 3 or more 11% 2 people 23% The Taiwanese traveller in Canada 1 person 66% Visitors by age group < Average trip length (nights) Visitors by trip length in nights % 1 5% Data sources for Country travellers in Canada The International Travel Survey (ITS) is an ongoing survey conducted by Statistics Canada in partnership with the Canadian Tourism Commission and some provinces, including BC. The survey contains questions designed to collect data on the characteristics of travellers. The ITS provides statistics on the volume and demographics of international travellers and on characteristics of their trips such as activities, expenditures, places visited, accommodations and length of stay. The data in this section is based on the 2010 ITS results and on those who entered Canada from Taiwan and who spent at least one night in BC. Comparisons to the 2007 ITS results are discussed where available. For more information, please visit Visitors to Canada by month (2010) Jan Mar May Jul Sep Nov Page 2

3 Activities and transportation The purpose of Taiwanese trips to Canada shifted considerably between 2007 and Leisure travel dropped from half to, while business travel and visits to friends and family (VFR) increased considerably between 2007 and Most of the other trips were taken for educational purposes and remained stable. In 2010, shopping (95%) and sightseeing (81%) were the most popular activities for Taiwanese travellers (these activities were 93% and 88% respectively in 2007). Likely related to the shift in trip purpose, Taiwanese visits to friends and relatives increased considerably over Visits to parks, galleries, gardens and historic sites declined. The Taiwanese traveller in Canada Primary trip purpose In 2007, Taiwanese visitors 25% 5 75% 10 travelled mainly by bus and boat in Canada, likely reflecting the % 49% 5% 21% itineraries of organized tours. In 2010, following the shift to more % VFR Leisure 22% Business 23% Other VFR travel, visitors from Taiwan favoured private cars, and metro, subways and taxis. Other activities while in Canada Transportation while in Canada Trip activities* Transport method Friends or relatives 5 72% Private car 42% 65% National or provincial park 64% 48% Metro, subway, taxi 3 56% Museum or art gallery 31% 27% Bus 62% 36% Historic site 5 23% Boat 5 27% Zoo, aquarium or garden 37% 21% Plane 1 Theme or amusement park 22% 17% Rented car 8% 9% Sport or outdoor activity 18% 16% Private boat 2% Festival or fair 7% 13% Train 2% Casino 9% 12% Private plane 1% Spending and perceived value On average, Taiwanese travellers spent $1,600 per party during their visit to Canada in 2010, up 7% from In 2010, travel parties spent $86 a night, down 17% from The increase in trip length offset the decline spending per night (which was likely due to a decrease in average party size). In 2007 and 2010, about 6 of travel expenses were directed to food, lodging, and transport. Taiwanese spent more on entertainment and other items than other overseas visitors to Canada. Expenditures by travel party Expenditure type Accommodation 26% 23% Transportation 13% 12% Food and beverage 24% 23% Recreation/entertain 7% 7% Other costs 3 34% Total spend by party $1,521 $1,621 Party spend by night $104 $86 *Other than shopping and sightseeing Overall, visitors from Taiwan were satisfied with the building blocks of travel transportation, accommodation, local hospitality, and the variety of activities available during their trip. In 2010, over 7 rated these aspects as good. Satisfaction levels have increased since 2007, particularly for the variety of activities (good ratings were up 9 percentage points) and accommodation (up 18 points). Taiwanese travellers have been less satisfied with their trip to Canada in terms of value for money. Over 4 of Taiwanese gave poor ratings, which is high compared to visitors from other overseas markets (a quarter of other overseas visitors rated Canada s value for money as poor ). However, there may be a more positive trend in terms of value as poor ratings decreased five percentage points and good ratings doubled in *Includes cruise, ferries, etc. Trip experiences in Canada Satisfaction with Transportation services Good 78% 79% Average 17% Poor 5% 1% Accommodation services Good 59% 77% Average 38% 23% Poor 3% Hospitality of local people Good 77% 83% Average 21% 13% Poor 2% 4% Value for your money Good 9% 18% Average 43% 41% Poor 47% 42% Variety of things to see and do Good 62% 71% Average 29% 29% Poor 9% Page 3

4 Taiwan s economic development since the 1960s was powered by exports, first in labour-intensive products and later in sophisticated high-technology goods, petrochemicals and services. Galvanized by US aid in the 1950s, Taiwan s economic growth has been sustained over many years with full employment and low inflation. Taiwan is now a creditor economy, holding the fourth largest stock of foreign exchange reserves behind China, Japan and Russia. In 2003, China overtook the US as Taiwan s largest trading partner, and Japan remains its second largest partner. Taiwan s economic profile In 2010, the average annual household income was 1.07 million NT$ (approximately $36,250 CAD). Housing and utilities accounted for a quarter of consumption expenses, followed by health, food and beverages, and hotels and restaurants (15%, 14% and 1, respectively). Private savings rates have increased with economic development, rising from 5% of disposable income in the 1950s to 25% in the early 1990s, and in Like many industrialized nations, Taiwan is undergoing significant demographic change. It has one of the world s lowest fertility rates just over one child per woman and the population is aging rapidly. These trends may pose challenges in terms of labour shortages and declining tax revenue and domestic demand. Taiwan has forged closer ties with China through trade and foreign investment. Taiwanese firms often act as management centres within global supply chains, producing goods domestically or elsewhere in Southeast Asia, and shipping them globally. However, Taiwan s export-fueled economy is sensitive to changes in global demand over the short and long term. Sources: CIA World Factbook, US State Department, Taiwan National Statistics Source: Bank of Canada Asia captures the lion s share of Taiwanese outbound travel, accounting for 92% of travellers in Mainland China, Hong Kong and Japan are the largest markets for Taiwanese travellers within Asia. China and Japan saw increases of 6 and 25%, respectively, in 2010 over North America attracted about 5% of Taiwanese outbound travellers, and Europe captured 2% in Within North America, the United States was the dominant market, attracting 436,000 Taiwanese travellers. Given America s close ties with Taiwan, the US has historically attracted many Taiwanese. However, more stringent US visa entry requirements for Taiwanese and the proliferation of attractive and competitive destinations in Europe and Asia may be reducing overall visitation to North America, especially as experiences such as Disneyworld and foreign-branded shopping are now available closer to home. Source: Taiwan Tourism Bureau, American Chamber of Commerce in Taipei Competition for Canada and BC Outbound destinations for Taiwan ( ) Country Mainland China 19% 26% Hong Kong 28% 25% Japan 14% 15% Macao 9% 7% United States 5% 5% South Korea 5% 4% Thailand 3% 4% Vietnam 3% 3% Malaysia 2% 2% Indonesia 2% 2% Singapore 2% 2% Philippines 1% 1% Australia 1% 1% Canada 1% 1% Netherlands 1% <1% United Kingdom 1% <1% Germany <1% <1% Austria <1% <1% France <1% <1% Source: Taiwan Tourism Bureau Page 4

5 The internet underpins the global tourism industry. Like several Asian countries, Taiwan is well positioned to take advantage of the convergence of wireless and mobile web, social media, and e-travel. There are 17 million internet users in Taiwan, representing 7 of the population, most of whom are using broadband access. In addition, 35% of Taiwanese internet users accessed the web via wireless and 19% accessed with mobile devices in Smartphones, which bring together mobile devices and the web, are growing in popularity in Taiwan and will likely increase further usage. Taiwanese national holidays Republic Day/New Year's Day January 1 January 1 Chinese New Year's Eve January 22 February 9 Chinese New Year's Day January 23 February 10 Chinese New Year holiday January February Peace Memorial Day February 28 February 28 Women and Children's Day April 4 April 4 Tomb Sweeping Day April 4 April 4 Labour Day May 1 May 1 Dragon Boat Festival June 23 June 12 Armed Forces Day September 3 September 3 Mid-Autumn Festival September 30 September 19 National Day October 10 October 10 Source: Timeanddate.com For more information, contact Tourism British Columbia s Research, Planning and Evaluation team By By phone: Ministry of Jobs, Tourism & Innovation Province of British Columbia (2012) Cover photo: Albert Normandin/Tourism BC Image Bank Page 4 photo: Tom Ryan/Tourism BC Image Bank Emerging trends in travel In a study conducted by the Taiwan Network Information Center, over half of participants used social networking websites, often spending an hour a day on these sites. According to ComScore, blogs are very popular in Taiwan; 85% of internet users visited blogs, making Taiwan the top markets for blogs globally. Taipei s Internet Advertising Media Association reported that social media advertising which uses blogs, forums and Facebook pages to create buzz and exposure is becoming mainstream and grew 35% in Many Taiwanese speak Mandarin Chinese and have access to Chinese websites. Six-in-ten Taiwanese shopped on-line, enjoying the low prices and quick delivery. Bargain hunting and discount buying is popular globally, with the proliferation of websites such as Groupon. Over a million Taiwanese visited Groupon in 2011, making the country one of Groupon s top ten markets. Groupon is pursuing the Asia market and other players are moving in as well. Ticket Monster is a South Korean website that offers daily deals on products, travel, and events; the site has grown rapidly to 2 million members and was acquired in 2011 by USbased LivingSocial, the world s second largest discount website after Groupon. The group-buying business is in its infancy but as broadband and credit card penetration increases across Asia, the impact on purchase and travel patterns could be significant. While many Taiwanese outbound travellers stay within Asia, longer vacation periods such as 2012 s longer Lunar New Year holiday break have increased demand for long-haul travel. In 2011, changes in Europe s Schengen visa requirements led to an increase in Taiwanese visiting Europe. Canada granted Taiwan visa-less entry in 2010, which may have provided a slight boost to inbound Taiwanese visitation. Direct flights from Taipei to Vancouver International Airport rose 2% in 2010, after declining 7% in A 2006 report on Taiwanese travellers to Nordic countries indicated that visitors were interested in seeing beautiful scenery, although purchasing distinctive regional items was also important. As a relatively mature travel market, Taiwanese long-haul pleasure travellers to Nordic countries were less interested in group tours with rushed itineraries, preferring more luxurious travel. Nordic countries were seen as a destination for second trips to Europe, and had few repeat visitors. Canada s destination image may be similar to that of Nordic countries, but Canada and BC may benefit from a trans-pacific affiliation. Sources: Taiwan Economic and Cultural Office, European Travel Commission, Taipei Times, Financial Times, Scandinavian Tourist Board, InterVISTAS Page 5

26% Estimated GDP per capita (2012) $41,231 USD. 2% GDP growth (2011) 3.4% 10% GDP growth (2012) 0.9% 19% Forecasted GDP growth (2013) 0.

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