Starting from 1990, the Tourism Bureau integrated civilian and local governmental resources to conduct the event to celebrate the Lantern Festival (fifteenth day of the first month in the lunar calendar) and the end of the Chinese New Year. The purpose of the festival is to spread the traditional folklore festival. It is also known as the Yuan Xiao Festival.
The firecrackers ceremony of the Wumiao Temple in Yanshui District was held by ancient people in order to show respect for the exploits of Guan Yu. Fengpao is the ceremony to start to burn thousands of soaring firecrackers hung on a five to twenty-five meters high wooden stand. This ceremony starts from six o'clock in the afternoon until five o'clock in the morning. Thousands of people and visitors attend the ceremony.[citation needed]
The festival is the most important annual lantern festival in Taiwan. Earlier times, the event was held in Chiang Kai-shek Memorial Park in Taipei. Since 2001, the event toured around Taiwan.
In 2009, the festival was on Monday 9 February.
The American Discovery Channel's program "Fantastic Festivals of the World" has highlighted the Taiwan Lantern Festival as one of the best festivals in the world.
On 28 January, Rushdie responded to Chetan Bhagat via Twitter after the popular writer taunted him and his work.[26]