Domestic travel strong in 2023: Tourism Administration

Taipei, March 11 (CNA) Domestic travel in Taiwan remained strong in 2023 despite more Taiwanese vacationing abroad, the Tourism Administration said Monday, citing higher domestic traveler and guest numbers that outpaced the levels seen before COVID-19 hit.

A total of 79.833 million guests stayed in hotels and other types of accommodation in Taiwan in 2023, about 14.489 million more than in 2022, before Taiwan's borders had fully reopened, and about 20,000 more than in 2019.

Of the guests, domestic traveler numbers were up 5.88 percent from 2022 and were up 23.88 percent compared to 2019, indicating strong domestic travel activity during a year when foreign visitor numbers were also up 5.6 million from 2022, the administration said.

Domestic travel gained strength even as the average room price for tourist hotels in Taiwan rose 11.08 percent to NT$4,660 (US$148) in 2023, up from NT$4,195 in 2022, and the average room price for hotels overall rose 7.75 percent to NT$2,671, according to Tourism Administration figures.

Whether the figures will hold firm in 2024 remains to be seen as Taiwanese finally have the chance to travel overseas after nearly three years of strict border controls due to the COVID-19 pandemic that dramatically limited outbound trips.

In 2023, 11,795,834 Taiwanese traveled abroad, compared to 1,482,821 in 2022, and over 58 percent of them (6,870,883) took their trips in the second half of the year, a rising trend that could potentially cut into domestic vacations.

Domestic hotel operators also face challenges that could limit the domestic travel sector's growth, including an ongoing labor shortage in the industry that has prevented properties from opening all of their rooms to guests, the administration said.

In addition, the rise in the minimum monthly wage, resulting in rising labor costs, and higher electricity prices, which rose 11 percent on average in the first half of 2023, have increased operator costs that could drive accommodation prices higher.

The Tourism Administration indicated, however, that hotels have focused on improving the quality of their service and marketing strategies such as selling packages that include meals, family activities or guided tours, to improve the guest experience.

It also pointed to diversification in the domestic tourist market, resulting in products and price points that are appealing to high-end, leisure, business and budget travelers, which could help maintain domestic travel momentum.