The opening of Hotel Industry Lai Zhengyi: Taiwan is not afraid of Competition

The opening of Hotel Industry Lai Zhengyi: Taiwan is not afraid of Competition

Lai Cheng-Cheng, chairman of the tourist Hotels Association, said that Taiwan's tourist hotel industry is strong and not afraid of competition, and should make good use of this opening opportunity to advance the Chinese mainland and enter the international market.

Lai Zhengyi believes that this cross-strait service trade agreement, which allows the mainland's international tourist hotels to come to Taiwan, "has an impact on Taiwan's tourist hotel industry, but it is not afraid."

He said: because Taiwan has done quite good service quality over the past few decades, the service that wins by quality is the greatest advantage for Taiwan operators to compete with the other side.

Lai Zhengyi pointed out that although the mainland side has already fully opened up Taiwan's hotel industry to the Chinese mainland site, because the formal laws, rules, and relevant supporting facilities are not yet clear, and before they become more formal, most operators invest in mainland China through the third place, and the tax procedures are complicated.

He said that if the cash flow goes around one more place, one more tax will be levied, and after opening up, these procedures can be simplified.

Lai Zhengyi also said that Taiwan's market of 23 million people is too small, and if the two sides of the strait are open, it will definitely be good for domestic hotel operators, because there are special historical and cultural ties between the two sides of the strait, language and culture are in common, and the whole world wants to take advantage of Taiwan's exchanges with the mainland. Taiwan should make good use of this advantage and opportunity to enter Europe, the United States and the international market through the mainland market, so as to increase Taiwan's competitiveness in the global market.

With regard to the outside world's concern about services and trade, opening up the mainland to invest in tourist hotels in Taiwan will have an impact on the living space of Taiwan businessmen. Lai Zhengyi analyzes that the current average room price of tourist hotels in Taiwan is about NT $3600, which is far lower than the average room rate of NT $5000 to NT $6000 in Hong Kong and Singapore. it is estimated that investors on the other side will not consider investing in tourist hotels in Taiwan after considering Taiwan's prices, land prices, and market size.

Lai Zhengyi said, "opening up will not have much impact on Taiwan, and we do not have to worry about it."