China yesterday made the sudden move to ban individual mainland tourists to Taiwan starting today. It cited "the current state of cross-strait relations."
People see this as a disaster for Taiwan's economy.
But not so fast..
bloomberg.com/opinion/articl…
Taipei responded by easing rules on SEA travelers.
Further, the reduced flow of mainland visitors is offset by more Japan, Korea tourists wishing to visit.
Now: Japan + Korea > Mainland
The contribution from mainland visitors is easily overstated.
Japan, Korea visitors spend more per day than mainland visitors.
Moreover, they spend more on employment drivers: hotels, restaurants, transport.
However, a CRUCIAL point is that around half that money is spent on luxury (jewelry, cosmetics, perfumes, accessories, alcohol). Most are imported, meaning little economic contribution or tax revenue to Taiwan
A cut in mainland tourism to Taiwan has seen a double-digit increase in visitors from Japan & Korea in past 3yrs.
Japan & Korea combined now send more visitors to Taiwan than mainland China.
They spend more.
That money spent goes more directly to Taiwan's economy