Presentation Materials

Investment Opportunities in
the Tourism and Recreation Industry
David W.J. Hsieh
Deputy Director General
Tourism Bureau, MOTC, Taiwan (ROC)
October 7, 2009
1
„
„
Exploring Partnership
Opportunities between Int'l Hotel
Chains and Taiwan's Tourist Hotels
Business Development
Opportunities in Taiwan's Tourism
and Recreation Industry (Penghu)
2
Exploring Partnership
Opportunities between Int'l
Hotel Chains and Taiwan's
Tourist Hotels
3
1. Overview of the Tourist Hotel
Industry and Hotel Operations
in Taiwan
4
1. Overview of the Tourist Hotel
Industry and Hotel Operations in
Taiwan
Category:
Int'l tourist hotels, standard tourist hotels, and
general hotels
Number:
Hotel Type
Hotels
Rooms
Int'l Tourist Hotels
63
18, 348
Standard Tourist
Hotels
31
3, 672
General Hotels
2, 672
106, 201
5
2. International Hotel Chain
Partners in Taiwan
6
Taiwan Partners of Int'l Hotel Chains (1)
Prince (Gloria Prince Hotel, Nice Prince Hotel & Janfusun Prince Hotel)
Sheraton (Sheraton Taipei Hotel) & Hyatt (Grand Hyatt Taipei)7
Taiwan Partners of Int'l Hotel Chains (2)
Shangri-la (Far Eastern Plaza Hotel), Westin (The Westin Taipei),
Nikko (Hotel Royal Taipei), & Four Points (Four Points by Sheraton)
8
Taiwan Partners of Int'l Hotel Chains (3)
Holiday Inn & Holiday Inn Express
9
Four Hotels (1,325 Rooms) Opening in
2009
Investor
Completion
Date / No.
of Rooms
Area
Int'l Hotel Chain
Notes
Taoyuan
County
Novotel Taipei Taoyuan
Int'l Airport
Novotel (Accor Group )
CAL Hotel Co., Ltd.
2009.9.30
(361)
Sun Moon
Lake
Wen Wan Hotel & Resorts
Okura (Okura Japan)
Wen Wan Hotel &
Resorts
2009.10.10
(92)
BOT
Taipei
City
Le Meridien Taipei Hotel
Le Meridien
(Starwood Group )
My Humble House
Hospitality Management
Consulting
2009.12.31
(160)
Xinyi Dist.
(Shin Kong)
Kaohsiung
County
Skylark Hotel
Crowne Plaza
(Inter-Continental Group )
Eliter International
2009.12.31
(712)
10
Hotels Opening in 2009
Novotel (Novotel Taipei Taoyuan International Airport)
Crowne Plaza (Skylark Hotel )
11
Five Hotels (1,350 Rooms) Opening in 2010
Area
Int'l Hotel Chain
Sheraton Yilna Resort
Yilan
Sheraton
County
(Starwood Group )
Investor
Completion
Date (No. of
Rooms)
Sky Line
International
Entertainment Co.,
Ltd.
2009.12.31
(193)
Notes
Taipei
City
President Int'l Hotel
W Hotel
(Starwood Group )
President Int'l
Development Co.
2010.12.31
(361)
Xinyi Dist.
Taipei
City
Kagaya Peitou
Kagaya
(Kagaya Japan)
Kagaya Peitou
2010.12.31
(99)
Beitou
Dist.
Hsinchu
County
Hsinchu Sheraton
Hotel Sheraton
(Starwood Group )
Grace
Construction Co.
2010.3.31
(386)
Penghu
County
Four Point by Sheraton
Penghu Four Points
(Starwood Group )
Dabus
Development &
Construction Co
2010.12.31
(311)
12
One Hotel (516 Rooms) Opening in
2011
Area
Int'l Hotel Chain
Investor
Completion
Date (No. of
Rooms)
Taipei
City
Taipei Four
Seasons
Four Seasons
Group
Homax Hotel &
Resort Corp.
2011.10.31
(516)
Notes
Xinyi Dist.
(Cathay)
13
One Hotel (580 Rooms) Opening in
2013
Area
Taipei
City
Int'l Hotel Chain
Investor
Yihwa International
Hotel
Yihwa Int'l Co.
Marriott Group
Completion
Date (No. of
Rooms)
Notes
2013.6.30
(580)
Dazhi
14
Hotels Planning to Join Int'l Chains
and Have Applied for Construction
Permission (1)
Okura & Le Meridien
15
Hotels Planning to Join Int'l Chains
and Have Applied for Construction
Permission (2)
W Hotel & Kagaya
16
Hotels Planning to Join Int'l Chains
and Have Applied for Construction
Permission (3)
Four Seasons & Marriott
17
Int'l Hotel Chains Planning
to Expand to Taiwan
Area
Int'l Hotel Chain
Investor
Notes
Taipei
City
Mandarin Oriental
Mandarina Crown Hotel
Co.
Taipei
City
Okura (Japan)
(Undetermined)
General Hotel
Taichung
City
Millennium
Fong Leong Group.
In Talks
(Not Finalized)
Under
Construction
18
Hotels Planning to Join Int'l Chains
but Have Not Applied for
Construction Permission
Mandarin Oriental & Millennium
19
3. Project Vanguard for
Excellence in Tourism
(1) Hotel Star Rating Evaluation
(2) Helping Star-rated hotels to Join Int'l
or Domestic Hotel Chain Brands
20
(1) Hotel Star Rating Evaluation
21
(1) Purpose of the Hotel Star
Rating Evaluation
◆ Bringing Taiwan up to international quality standards.
◆ Win-win results for the hotel industry
and consumers
22
(2) Helping Star-rated Hotels
to Join Int'l or Domestic
Hotel Chains
23
(2) Helping Star-rated Hotels to Join
Int'l or Domestic Hotel Chains
1. Subsidy Purpose: Membership fees,
management fees, franchise fees, royalty
fees, brand usage authorization fees,
education/training fees and technical
guidance fees related to joining int'l or
domestic hotel chains
2. Subsidy Amount: 50%of total, up to NT$5
million per year
3. Subsidy Target: Tourism Bureau star-rated
international tourist hotels, standard tourist
hotels and general hotels
4. Subsidy Period: 2010~2012
24
4. Incentives for Private
Investment in Hotel
Development
(1) Tax Deductions and
Exemptions
(2) Preferential Loans
(3) Subsidies
25
(1) Tax Deductions/Exemptions
-Business Income Tax Credits
1. Purpose: Construction of major tourism and travel
facilities in national parks, national scenic areas and
special scenic areas
Incentives: Five-year business tax exemption;
business tax deductions; import duty exemption or
payment in installments; exemption or reduction of
land, property, or deed tax; or deduction of the value
of IPO shares-issued from business tax. (Applicable
law: "Statute for Promoting Private Participation in
Public Construction.")
26
(1) Tax Deductions/Exemptions
-Business Income Tax Credits
2. Purpose: Travel expenses related to the
participation in international promotions and
marketing, as well as participation in
international tourism associations, exhibitions,
and promotional meetings
Incentive: Deduction of expenses from business
income tax for the same year. (Applicable law:
Statute for the Development of Tourism)
27
(2) Preferential Loans
1. Investors may apply for medium and long-term
preferential loans under the CEPD's "Operational
Guidelines for the Utilization of Long-Term Funding."
2. "Guidelines for Preferential Loans to Encourage the
Upgrading of the Tourism Industry":
(1) 1.5% interest rate subsidy on a 15-year loan up to
NT$300 million for purchase (or construction) of
machinery, equipment, land, and places of operation,
and for capital repairs and computerization-related
funding (Assistance provided to date: 68 loans, totaling
NT$2.619 billion; 20 case of subsidized interest rates,
totaling NT$675 million)
(2) Five-year loans up to NT$50 million for operations and
working capital
28
(3) Subsidies
Subsidies for professional certifications to encourage
service quality improvements
1. Professional Certifications: Management system
certification (ISO), Hazard Analysis and Critical
Control Point (HACCP) certification, hotel industry,
green logo, green building logo, hot spring logo, "5S"
certification and other domestic and international
certifications approved by the Tourism Bureau
2. Subsidy Items and Amounts: Certification fees,
consultant fees, hardware facilities fees or
examination fees, up to 50% of the actual expense;
Maximum subsidy amount for any two fee items is
NT$5 million.
3. Subsidy Period: 2009~2012
29
Government Tourism development
fund aims to generate NT$550 billion
in tourism revenue, 400,000 tourism
related jobs, and NT$200 billion in
private investment.
30
Opportunities
Opportunities in
in Taiwan's
Taiwan's
Tourism
Tourism and
and Recreation
Recreation Industry
Industry
(Penghu)
(Penghu)
31
Introduction to
Penghu
32
1. Location
▓ The Penghu
archipelago is
located in the
Taiwan Strait
between Taiwan
and mainland
China.
33
2. Area
▓ Land Area: ~127km2
34
3. Climate
▓ Avg. Annual Temp.: 23℃.
▓ Avg. Annual Rainfall 1,324 mm
Average Annual Rainfall in Penghu (1991~2007)
Rainfall (mm)
300
250
200
Rainfall (mm)
150
100
50
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep Oct
Nov
Dec
35
4. Population
People
92, 077
Households
30, 231
Avg. Household
Size
3.05
Population Density
734 people/km2
Data current to Jan. 2009
36
Penghu's
Tourism
Environment
37
1. Transportation
▓ Air: ~85%
─Magong Airport can
accommodate Boeing 757
series and below aircraft.
─ Penghu is served by many
int'l charter flights.
▓ Sea: ~15%
─Ferry service from
Kaohsiung, Anping
(Tainan), and Budai
(Chiayi)
38
2. Tourism Policy
▓ Attracting mainland Chinese tourists to Penghu via
direct links
▓ Magong Airport is a flight point for direct cross-strait
links.
▓ Penghu is developing as an "international tourism
vacation area."
39
3. Accommodations
▓ There are about 2,900 hotel and B&B rooms in
Penghu, mainly in Magong. Room demand is
expected to reach 4,600 by 2011.
▓ New hotel investment plans will add an
estimated 2,170 rooms to meet short-term
future needs.
40
4. Tourism Industry Overview
▓ Travel Agencies: 47 agencies (40 main
offices and 7 branch offices, incl. 2
consolidated agencies, 24 Class-A agencies,
and 21 Class-B agencies) and 270
employees
▓ Tour Buses: 11 tour bus companies; 118
large tour buses
▓ Service Personnel: 17 Chinese-speaking
guides; 32 international tour group
managers; 11 mainland tour group
managers; ~40 domestic tour group
managers; and ~122 volunteer guides
41
5. Tourism Market Overview
▓ Visitor
Year
Visitors
Growth Trends
2002
2003
2004
2005
2006
2007
2008
384, 037
359, 004
517, 274
533, 366
501, 197
488, 590
479, 902
600,000
500,000
400,000
Visitors 300,000
200,000
100,000
0
2002 2003 2004 2005 2006 2007 2008
Year
42
5. Tourism Market Overview
▓ Tourism Market: Domestic tour group visitors account for about
42.5% of the tourist market in Penghu; visitors from N. Taiwan
account for about 42.6% of the total.
▓ Peak Tourist Season: April~Sept (80% of total visitor volume)
▓ Average Stay: 3 days / 2 nights
▓ Main Visitor Activities: Sightseeing, boating, water games, swimming,
snorkeling, seafood dining, and visits to cultural and historic sites
▓ Tourism Revenue: Avg. spending per visitor: NT$7,645 (~US$232);
Total annual tourism revenue: NT$3.8 billion (~US$115million)
▓ Mainland Chinese tourists visit Penghu via the regular ferry service
between Magong and Xiamen. Penghu is also served by
international charter flights and cruise ships. In addition, Penghu is
developing as an "international tourist vacation area."
43
6. Utilities
▓ Electricity
1. The Jianshan thermal power plant has a 120MW
generation capacity. Peak summer use is 80MW.
2. A planned 66.5-km undersea cable from Yunlin to
Penghu will be able to supply 200MW.
▓ Water
1. Daily water supply on the island is
28,000 tons; 2. A 12,500-ton capacity
desalinization plant has been built
in Magong.
44
7. Casino Policy
• The two work items under the revised provisions of
Article 10-2 of the Statute for Offshore Islands
Construction are: "casinos" and "international tourism
vacation areas."
• The Executive Yuan has authorized the Gaming
Supervision and Management Commission to form a
working committee joined by relevant agencies to jointly
handle legislation, supervision, management and
coordination affairs related to "tourism casinos."
• The MOTC is entrusting legal and specialist advisors to
assist with compilation and consulting on the draft
"Gaming Law."
• The Tourism Bureau will be in charge of regulations on
"international tourism vacation areas."
45
Penghu's
Tourism
Resources
46
1. Marine Ecology
Clown
Clown Fish
Fish
Sea
Sea Fans
Fans
Green
Green Turtles
Turtles
Sea
Sea Fan
Fan Coral
Coral
47
2. Geology and Topography
Lintou
Lintou Beach
Beach
Xiaotai
Xiaotai Bay
Bay in
in Qimei
Qimei
Mudou
Mudou Island
Island
Tongpan
Tongpan Island
Island
48
3. History and Culture
Tianhou
Tianhou Temple
Temple
Erkan
Erkan Traditional
Traditional Residence
Residence
Xiyu
Xiyu West
West Fort
Fort
Four
Four Eye
Eye Well
Well
49
4. Local Industry
Fish
Fish Drying
Drying
Squid
Squid
Sardine
Sardine Fishing
Fishing
Oyster
Oyster Racks
Racks
50
5. Festivals & Events
Turtle
Turtle Ceremony
Ceremony
Fireworks
Fireworks Festival
Festival
Lantern
Lantern Festival
Festival
Windsurfing
Windsurfing Competition
Competition
51
Overview of
Tourism
Investment
Projects
1) Yuweng Dao
Vacation Park
2) Dongwei Stone
Sculpture Park
52
1. Yuweng Dao Vacation Park BOT Project
(1) Site
▓ Northern tip of Xiyu Township
(Yuweng Island), near the west end
of Penghu Great Bridge--the land
transportation gateway to Xiyu
Township
(2) Investment Items
▓ Resort hotel area (int'l-class tourist
hotel with at least 100 rooms), theme
exhibition area (for cultural
exhibitions, workshops, and the
display and sale of specialty
agricultural products) and tourism
and recreation facilities.
53
1. Yuweng Dao Vacation Park BOT Project
(3) Investment Amount
▓ Min. Investment: NT$300
million (~US$10 million)
(4) Site Area
▓ Land area of BOT portion of
the development site: 3.2416
ha; ROT section: 2.3766 ha;
Operation and management of
total land area of 5.6182 ha
plus ~3.366 ha of surrounding
marine area
(5) Development Period
▓ Land use rights: 50 years
▓ Contract signing est. in July
2010; business start in 2013
Project Site
54
2. Dongwei Stone Sculpture Park BOT Project
(1) Site
▓ Located about 2km from Magong
City at the intersection of County Hwys
203 and 202; Downtown Magong lies
to the west and Baisha and Xiyu to the
northeast; Hwy 202 links east to Huxi
Township; Vantages of Penghu Bay
and Dacang Island
203
202
(2) Investment Items
▓ Stone Art Workshop Welcome Area,
Retail Shop and Exhibition Center,
Tourist Hotel (60 rooms), and tropical
marine accommodation area
(3) Investment Amount
▓ Min. Investment NT$300 million
(~US$10 million)
55
2. Dongwei Stone Sculpture Park BOT Project
(4) Site Area
▓ 4.2035 ha
(5) Development Period
▓ Land use rights: 35 years
▓ Contract signing est. in Dec. 2010; business start in 2014
Project Site
25
56
Thank You!
57