Travel agencies are continuing to struggle through the impact of the epidemic. Tourism bureau data shows that nine travel agencies dissolved this year between January and March. That''s twice as many as last year. An industry source says in the absence of a bailout arriving soon, a tidal wave of closures could hit as early as next month.
A banner hangs over the shuttered storefront, calling for new tenants. This used to be a travel agency. It''s one of many that have called it quits.
Amid the pandemic, border controls have gone up restricting movement in and out of Taiwan. Travel agencies have borne the brunt of the impact. According to the Tourism Bureau, 10 travel agencies stopped operating and nine dissolved between January and March. That''s double the numbers seen last year in the same period.
Tien Yi-hsiu
Tourism industry alliance
With no tour groups going out, small and medium-sized travel agencies are struggling to hold on. They are all holding out for government subsidies, whether they''ll come or not. If subsidies keep getting delayed, next month there will be a very obvious wave of closures.
Small travel agencies can rack up maintenance costs of around NT$700,000 a month. Small to medium-sized operations cost NT$1.5 million to keep up. Optimistic predictions see the pandemic beginning to ease by year''s end. For many businesses, that means burning through NT$10 million just to last until then. Some agencies have decided to fold instead.
Tien Yi-hsiu
Tourism industry alliance
The pandemic is really severe overseas. Even if Taiwan contains the disease here, the situation abroad is still really grave, so the travel sector still has no way to expand.
The largest travel agency in Taiwan, Lion Travel, reported just NT$383 million in earnings in March, down 86% year-on-year. Star Travel, which has been put up for sale, saw profits shrink 95% year-on-year.
The Tourism Bureau said the sector was in flux but not yet in a state of dissolution. It said that the bailout would soon provide relief to affected businesses. But with airports sitting empty and the domestic market contracting, those in the industry fear that the bailout won''t be enough to break the fall.
