FIT hopes up for Taiwan

TAIWANESE sellers who were anticipating a jump in the number of younger mainland Chinese visitors after the China government approved Taiwan-bound FIT traffic starting June 28, say the market needs more time to take off.

The FIT visas, valid for stays of up to 15 days, are available to residents of Beijing, Shanghai and Xiamen, with a quota of 500 arrivals per day (about 15,000 per month).

Taiwanese travel agents TTG Asia e-Daily spoke to said although the number of mainland FIT travellers to Taiwan was steadily increasing, most are middle-aged or retired visitors on business or VFR trips.

Even though Taipei-based Phoenix Tours handles about eight per cent of total FIT business from the mainland (more than 300 customers per month), the company’s general manager, Spicer Lee, said only 10 per cent were travelling for leisure.

“I think it’s because the FIT visa regulations were only recently introduced, and the segment needs more time to mature. Most of our business from mainland China still consists of the older crowd,” he said.

Ivan Lin, vice president, inbound tour department, China Travel Service (Taiwan), agreed with Lee, saying that most of his income from serving mainland FIT customers was earned through visa processing fees, with the rest from booking accommodation, mini tours, car rental and airport transfers for those on leisure trips.

Only 10 per cent of the 400-500 mainland FIT customers Lin handles per month are on leisure trips, staying an average of four to five days, in three-star hotels or homestays. The rest participate in exhibitions, conventions and meetings, or visit relatives and friends, he said.

According to Lee, the main obstacle in growing this segment lies in the rules requiring mainland FIT visitors to apply for a travel permit in their hometowns.

“It would be great if they were allowed to apply at their place of residence, the number of which also needs to be increased from the current three,” he said.

“Once the rules are relaxed, we can even expect FIT traffic to surpass group traffic, like in Hong Kong, where more than 60 per cent of mainland Chinese visitors are FITs, and about 30 per cent are on group tours.”

Meanwhile, Taiwanese sellers are pressing on with efforts to grow the mainland FIT segment. China Travel Service (Taiwan) is planning to increase promotional efforts targeting mainland FITs through mainland travel agents and introduce one-day and customised tours, while the Taiwan Visitors Association has been running roadshows in various Chinese provinces.

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