Taiwan’s Tourism Market – Aiming for the Higher End

Photo: Courtesy of Silks Place Taroko

As Taiwan unveils its new “Waves of Wonder” campaign, hotels are attracting travelers with the promise of a high-quality experience.

Taiwan’s tourism offerings are exceptional. The island’s evolution has authentically cultivated the traits of its neighbors and masterfully combined them into one. It offers the affordability and adventure of the backpacker trails of Thailand, Vietnam, and Cambodia, the modern infrastructure and cultural depth of Japan, Asia’s most visited country, and a geographical beauty that measures up to the tropical Philippines.

As travel revives post-Covid, so do the ways countries present and market themselves. Since 2011, Taiwan has branded itself as “The Heart of Asia.” But this year saw a rebranding into “Taiwan – Waves of Wonder.” The new marketing focus is for visitors to “Enjoy the Mountains, Embrace the Sea, and Explore the Island.”

As Taiwan’s Tourism Administration points out, “In the past, people searched for ‘travel destinations.’ Now, Taiwan advocates ‘purposeful travel.’” The revitalized branding invites international visitors to experience Taiwan’s charm all year round and reflects a global shift toward theme-centric holidays.

Travelers looking for an aspirational trip might seek it through a local festival, cooking class, or other experiences that evoke the feeling. Sports-related attractions would target adrenaline lovers, nature reserves target those wanting tranquility, and food tours target pleasure seekers.

According to the Tourism Administration’s 2019 Survey Report on Visitors Expenditures and Trends in Taiwan, the main attractions that drew people in were “fine food or specialty snacks” and “scenic landscapes.” Tourists’ main activities in Taiwan were shopping and visiting night markets as well as historical or popular sites like Taipei 101 and Ximending. Their deepest impressions of Taiwan came from the cuisine, night markets, and scenic spots such as Kenting National Park, Jiufen, and Sun Moon Lake.

The market that Taiwan caters to well is mid- to high-end, seeing that it’s more expensive to fly here than almost any other destination in Asia. Prices are also higher here than in Southeast Asia. In 2019, the average spending by international visitors to Taiwan was US$196 per person per day. According to Thai statistics, in the same year, visitors there spent an average of US$139 per day, while those heading to the Philippines spent US$128 per day. Since then, the cost of eating out has risen markedly in Taiwan.

Having a thriving economy has also meant that hotels and services tend to be on the pricey side. But this isn’t necessarily a bad thing – instead of aiming for a greater number of tourists who spend less, Taiwan is focusing on travelers who pay more. And since unlike Thailand or Cambodia, Taiwan doesn’t need tourism to prop up its economy, it’s a clever play.

This trend is also reflected in the rising numbers of luxury hotels setting up shop on the island. In early 2020, InterContinental Hotels Group opened the Kimpton Da An in Taipei, featuring 129 rooms with a stylish design inspired by the local heritage and culture. Hyatt opened the Andaz Taipei in 2023, bringing the chain’s luxury boutique brand to Taiwan. Expected to open by 2025, the Waldorf Astoria Taipei will expand Hilton’s luxury portfolio in Taiwan, offering world-class service and upscale accommodations.

Whether pursuing a tourism strategy of economic quality over quantity will work in the long term remains to be seen. Still, it makes far better business sense to compete in this economic area than contend with the already oversaturated budget-travel market common throughout Asia.

“For domestic guests, diverse holiday marketing campaigns and all-inclusive packages, such as one-night stays with two meals, cater to staycation needs,” says Marketing Assistant Director of Hilai Hotels Jonathan Chen.

Grand Hilai Taipei offer luxurious experiences in Taiwan’s north and south. Photo: Courtesy of Grand Hilai Taipei

Grand Hilai Hotels & Resorts comprises the five-star Grand Hilai Kaohsiung, the recently opened Grand Hilai Taipei near the Nangang Exhibition Center, and the Grand Hilai Sun Moon Lake, a new luxury resort scheduled to open later this year.

To help attract international travelers, the group collaborates with Japanese company Sanrio (think Hello Kitty), offering 18 uniquely themed rooms. “These are particularly appealing to guests from Japan, Korea, Hong Kong, Macau, Singapore, and Malaysia,” says Chen. He adds that Hilai leverages online travel agency channels and influencer marketing for extensive digital exposure.

Indicators such as increased demand for conferences and exhibitions, inbound foreign tourists, and increased numbers of international flights reflect a post-pandemic travel resurgence. “Taipei has seen the fastest recovery rate [of business travelers],” says Chen, with Kaohsiung still on the path to reaching pre-pandemic levels.

Photo: Courtesy of Grand Hilai Kaohsiung

Interestingly, Hilai’s percentage of overseas visitors is higher than its domestic percentage, though the company would rather not release the exact ratio.

Knowing your market and having a good location are key factors in tourism. The Grand Hilai Taipei is a three-minute walk from the Nangang Exhibition Center, making it a convenient choice for participants.

“Ongoing events like Computex have seen major companies such as Arm Holdings (a British computer processor and software design company) and Nvidia choose the hotel for large forums and themed events,” says Chen. “The hotel also accommodates many attendees of large international conferences.” Luxury and convenience work well for Hilai.

A nest in nature

Away from the city, Taiwan offers an abundance of natural splendor. Silks Place Taroko is one hotel (of a chain, including locations in Tainan, Yilan, and Beitou) that uses its exclusive location to its full advantage. It’s the only luxury hotel of its kind in Taroko National Park and is favored by discerning travelers.

“Silks Place Taroko is a unique and popular spot for domestic customers in Taiwan,” says Jackie Chao, general manager of Silks Place Taroko. “So we focus more on staycation and a high-end experience.”

Guests at Silks Place Taroko can experience relaxation in nature despite post-earthquake closure of most parts of Taroko National Park. Photo: Courtesy of Silks Place Taroko

Taiwan in April experienced its strongest earthquake in 25 years, prompting both Taroko National Park and Silks Place Taroko to close to visitors. While most parts of Taroko National Park will be closed to visitors over the foreseeable future, the hotel plans to reopen in September, offering an immersive park experience and access to some trails.

Plans for more private tours and outdoor yoga programs held in the national park will make full use of the hotel’s location. “Last fall, we launched a private picnic on land owned by a local farmer, from whom we get many of our vegetables,” says Chao. “It’s about 15 to 30 minutes from the hotel, and it’s a small buffet. Guests can also pick their own fresh food.”

Silks Place Taroko works closely with Taroko Indigenous people, offering programs that share deep cultural insights. Every weeknight, the hotel hosts aboriginal dances and music. “This is one of our most popular events that our guests enjoy,” Chao notes. Silks Taroko also has nighttime movies projected onto the gorge surrounded by stars – a truly unique experience.

Photo: Courtesy of Silks Place Taroko

Initiatives like these take full advantage of one-of-a-kind locations day and night, enabling Silks Place Taroko to stand out from other locations domestically and globally.

Chao says the split between guests is around 70% local and 30% from overseas, with many offshore clients coming from Germany, Singapore, the UK, and the United States. “International visitors are more into hiking and being outdoors, while domestic guests really enjoy staying within the hotel, particularly the pool and spa,” she notes.

Silks Place Taroko also takes advantage of its environment by offering private tours with a bespoke storyteller and luxe, all-inclusive day hike packages, creating exclusive experiences for its guests.

Guests can book a private tour with an in-house storyteller, who takes guests into the National Park to share Indigenous stories and legends, weaving magic through narrative, on various walking trails. Also available is a one-day hike with all-inclusive service. “We will bring you to the trail and have prepared a little hiking pack with a lunchbox and some energy drinks,” says Susan Jung, PR supervisor of Silks Place Taroko. “No preparation is required by guests – we want to create unique experiences to match the high-end expectations.”

In addition to hotels catering to the more exclusive end of the tourism market, Taiwan offers several Michelin Guide-featured restaurants, along with hot spring experiences. The globally lauded Michelin Guide lists 825 selected restaurants and eateries in four areas of Taiwan – Taipei, Taichung, and the recently added in 2022, Tainan and Kaohsiung.

“By adding Tainan and Kaohsiung – two cities with their own distinctive culinary identities which have impressed our inspectors – to our restaurant selection, we also hope our selection will further satisfy local and international gourmets looking for unforgettable experiences,” Gwendal Poullennec, international director of the Michelin Guides, told media in 2022.

Hot springs in Taiwan are easy to find, from those in wild canyons to well-established public pools, with some also catering to the higher end of the soaking spectrum. Prime examples are a Nordic-inspired hot spring sanctuary at the Gaia Hotel in Beitou, Hoshinoya Guguan reflecting Japanese heritage near Taichung, and other offerings on Taiwan’s east coast – chic options for relaxing bathing are abundant.