Change in China’s tourism law temporarily affects tourism flows inbound
In the fourth quarter of 2013, the flow of arrivals was significantly affected by a change in China’s tourism law, as China is the largest source market for Taiwan. China’s new legislation was implemented to regulate fairer trade between travel agencies and tourists. The new law prohibits travel agencies from offering low-priced tours and then marking-up their profit margins by obtaining commissions from shops to which they bring their tour groups or requiring additional payment for services. However, this was perceived as a good temporary situation as the quality of tours from mainland China to Taiwan is expected to improve over time, benefiting travel operators in general.