Why Restarting Cross-Strait Tourism Remains a Challenge: The Role of Politics and Economic Interests

Tags: Cross-strait tourism, political tensions, Taiwan, mainland China, economic impact, tourism industry, travel curbs, tourism policy

The Decline of Cross-Strait Tourism

For decades, cross-strait tourism between Taiwan and mainland China thrived. Ringo Lee, a Taiwanese tour operator with over 30 years of experience, recalls a time when he had a fleet of six buses running daily trips across Taiwan for mainland tourists. However, those days are long gone. Lee, now struggling in the tourism industry, no longer operates those buses, and cross-strait tourism has dwindled significantly. The political tensions and the COVID-19 pandemic have compounded the problem, leading to an effective shutdown of tourism across the Taiwan Strait for nearly eight years.

Recent Efforts to Ease Travel Restrictions

Despite the challenges, recent talks between officials from Taiwan and mainland China suggest that some easing of travel restrictions may be on the horizon. At the Shanghai-Taipei City Forum in December 2024, Shanghai Vice Mayor Hua Yuan invited Taiwanese residents to visit Shanghai and expressed interest in promoting group tours to Taiwan. This initiative signals the possibility of reviving cross-strait tourism at a city-to-city level, which could offer a more controlled environment to foster trust and pave the way for broader exchanges.

A Gradual Approach to Rebuilding Trust

Tourism experts believe that initiating tourism exchanges at a local level, such as city-to-city programs, might be a sensible first step in rebuilding cross-strait tourism. Lim Tai Wei, a professor at Soka University, suggests that such exchanges could help establish trust gradually, offering an ideal scenario where issues can be resolved without central political interference. However, for these initiatives to succeed, the political climate must be conducive, and the upcoming change in U.S. leadership with Donald Trump’s return to the White House could impact cross-strait relations significantly.

The Impact of Cross-Strait Tourism on Taiwan’s Economy

Cross-strait tourism was at its peak between 2008 and 2016, when Taiwan’s Kuomintang-led government facilitated direct sea, air, and mail links with mainland China. At that time, mainland Chinese tourists were Taiwan’s largest group of international visitors, with more than 3 million arriving annually by 2014. However, since 2016, tourism numbers have dropped sharply, and as of 2024, only around 14,000 mainland tourists visited Taiwan for leisure. Despite the downturn, there are signs that demand for Taiwanese tourism remains strong, as demonstrated by the 2.96 million Taiwanese visitors to mainland China in the first ten months of 2024.

Tourism’s Role as a Political Tool

Although the economic benefits of cross-strait tourism are clear, tourism has also become a political bargaining chip for both sides. Analysts point out that both Taiwan and mainland China have used tourism as a tool to gain a “political upper hand.” For China, tourism is seen as an “economic gift,” while Taiwan views it as a tool to maintain its stance against China’s “carrot and stick” approach. China has long considered Taiwan a part of its territory and continues to push for reunification. Taiwan, under the leadership of the Democratic Progressive Party (DPP), has maintained a firm stance on its sovereignty, making any movement towards expanding tourism politically charged.

The Risk of Over-Dependence on Tourism

While cross-strait tourism could provide a significant economic boost to Taiwan, some caution is advised. The tourism sector in Taiwan must be wary of becoming overly reliant on mainland Chinese tourists. Wu Se-chih, director of the China Research Center at Taiwan Thinktank, notes that tourism from mainland China has been heavily restricted in the past, with travelers required to join designated tours and follow fixed itineraries. This limits the broader economic impact, as only a small group of industry players benefit from the influx of mainland tourists. Additionally, the Chinese government holds the power to restrict tourism flows at any time, creating uncertainty for the industry.

Conclusion: The Future of Cross-Strait Tourism

While both Beijing and Taipei could benefit economically from the revival of cross-strait tourism, it remains a politically charged issue. Both sides must navigate these tensions carefully if they hope to rebuild the tourism industry. For now, the hope is that tourism can proceed at a city-to-city level, free from the influence of broader political issues. However, achieving this goal will require goodwill and a careful balancing of political and economic interests.


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