TAIPEI (TVBS News) — Taiwan's strengthening currency could reshape its tourism landscape, according to government officials monitoring exchange rate fluctuations. Transportation Minister Chen Shih-kai (陳世凱) told legislators Thursday (May 8), that while immediate effects remain unclear, the appreciating New Taiwan dollar might eventually alter travel patterns. His comments came during questioning at the Legislative Yuan (立法院), Taiwan's parliament, where he pledged the Tourism Administration (觀光署), Taiwan's national tourism agency, would vigilantly track developments.
The currency's upward trajectory has captured attention across Taiwan's travel industry, a vital economic sector in the island nation. Minister Chen cited recent historical precedent in regional currency dynamics, pointing to last year's experience with the Japanese yen. The initial weakening of Japan's currency created a surge in Taiwanese tourism to Japan, he explained, while the yen's later strengthening corresponded with a notable reduction in travelers heading to Japanese destinations.
The transportation chief outlined a potential dual impact from the currency shifts. A more robust New Taiwan dollar would likely benefit Taiwanese travelers by enhancing their purchasing power overseas, potentially stimulating outbound tourism. The opposite effect could challenge Taiwan's inbound tourism market, making visits more expensive for international travelers, with Americans facing particularly unfavorable exchange rates. Officials have detected no significant immediate consequences but are analyzing traveler statistics to identify emerging trends.
The minister committed to responsive policy adjustments should significant market shifts materialize from the currency fluctuations. Tourism industry representatives, including hotel operators, tour companies, and transportation providers across Taiwan, have been advised to prepare contingency plans for potential changes in visitor demographics and spending patterns as economists continue monitoring the New Taiwan dollar's performance against major global currencies. ★