IVIS Country Analysis – Taiwan

TAIWAN

238,999 Arrivals in the United States

Loss of 49,033 over 2002, -17.0%

49.7% of all Taiwanese Long-Haul Travelers

-5.3% over 2002

SUMMARY

In 2003, total outbound travel from Taiwan declined 5.1 percent over 2002, due to the outbreak of Severe Acute Respiratory Syndrome in the region, which nearly halted travel for more than a month. Still, outbound travel from Taiwan generated nearly 7.2 million arrivals to destinations worldwide. Long-haul travel from Taiwan declined 12.4 percent in 2003 over 2002. Taiwanese arrivals to the United States declined faster than long-haul travel (-17.0%) in year-over-year. Because U.S. arrivals from Taiwan declined faster than total long-haul travel in 2003, the U.S. market share of Taiwanese long-haul travel (MSI) also declined 5.3 percent. While the MSI is at its lowest level this decade, the U.S. continues to earn nearly one half (49.7%) of the Taiwanese long-haul travel market.

Taiwan's economy expanded in 2003. Real GDP grew 3.3 year-over-year, while real private consumption was sluggish growing only 0.8 percent over 2002. Consumer prices, which began to slip in 2002, continued to decline (-0.3%) in 2003 putting Taiwan at risk for a deflationary economy. The unemployment rate remained nearly the same in 2003 as the year before at 5.0 percent, high for this market. The Taiwan economy is normally driven by high tech exports. But with a soft global market for its exports in 2003, the economy has been driven in recent years by consumer spending. The Taiwan dollar remained nearly flat against the U.S. dollar in 2003 (0.4%), but declined against other world currencies (-2.2%).

The United States is by far the most popular country destination for long-haul travel from Taiwan, earning one half (49.7%) of the market in 2003. In second place was Canada with 17.9 percent of the long-haul travel market from Taiwan. The UK is also a competitive country destination for Taiwanese long-haul travel, earning 8.1 percent of the market, followed by Austria (5.0%) and South Africa (3.4%). The U.S. and Canada both lost market share of long-haul travel from Taiwan in 2003. The other three countries gained share.

Source: Global Insight

Regionally, the United States is clearly the most popular destination for long-haul travel from Taiwan with 49.7 percent of the market. Other popular regions include Europe (28.0%) and Africa (3.6%). The U.S. was the only one of these regions to lose market share of long-haul travel from Taiwan in 2003. All of these other regions gained share.

Source: Global Insight