Taiwan’s off-shore island Kinmen will attract more Chinese tourists with its new development project

9-Nov-2009

Taiwan Land Development Corp yesterday signed a 50-year build-operate-transfer (BOT) agreement with the Kinmen County Government, promising to turn the former war-torn island into an international tourism and leisure spot in five years with an initial budget of NT$3.69 billion (US$113.3 million). “We hope that when the project is completed, it will bring in tens of billions [of New Taiwan dollars] in economic benefits to Kinmen, and also 20 million visitors from Mainland China each year” Kinmen County Commissioner Lee Chu-feng told a signing ceremony.

The BOT project covers a 7.45 hectare lot 200m north of Kinmen Shanyi Airport, where a hotel, exhibition and conference halls, bonded warehouses, recreation and shopping malls, as well as a duty-free shop will be built starting next year and completed in three to five years. This project intends to turn Kinmen into a multi-functional travel resort, it aims to become a resort for leisure, shopping, education and also medical and healthcare services.

Taiwan Land Development president Andy Lai said that the soon-to-be-built hotel would be a three or five-star establishment with 300 to 500 rooms. He estimated that the 50-year project could contribute a minimum of NT$2.4 billion in tax revenue to the county government, while potential tourism revenue could reach at least NT$2 billion per year.

If the estimated 1.7 million visitors traveling via the “small three links” — with the number forecast to rise to 2 million in two years — were to spend NT$1,000 each, the county government could get a revenue boost of NT$2 billion per year, he said.

Moreover, if 1 percent to 10 percent of 21 million tourists traveling to Xiamen, China, could extend their trip to include Kinmen at a cost of NT$10,000, the county government could further see an income of between NT$2.1 billion to NT$21 billion each year, he added.

Kinmen now attracts about 500,000 tourists per year, including 150,000 Chinese tourists since late last year, including 50,000 who stayed overnight.