Chinese Tourists to Taiwan Reach Highest Peak Since COVID, Cross-Strait Tourism Deficit Approaches 170 Billion TWD

Taiwan is facing an unprecedented tourism imbalance with mainland China, as Taiwanese travelers increasingly flock across the strait while Chinese tourists remain largely absent from Taiwan. This widening disparity underscores the complex intersection of economic opportunity and political constraints shaping cross-strait relations. The scale of the gap has reached historic proportions, extending beyond Taiwan's hospitality sector to raise broader questions about economic integration and the practical limits of people-to-people exchanges amid political tensions.

The divergence in travel patterns is stark. Last year, nearly 4.9 million Taiwanese traveled to mainland China, marking the highest volume since the onset of the COVID-19 pandemic in 2020. In contrast, only about 550,000 mainland tourists visited Taiwan, creating a 9-to-1 ratio. According to data released by China's Taiwan Affairs Office, mainland tourist arrivals in Taiwan remain at roughly one-tenth of their peak volume from 2014 and 2015, when approximately 4 million mainland visitors crossed the strait annually. （Related： Opinion | As Trump's Beijing Visit Looms, Taiwan's Defense Budget Faces Critical Test ｜ Latest ）

The financial implications of this disparity are substantial. Based on average spending patterns, Taiwanese tourists spent an estimated $64 billion, or 1.96 trillion New Taiwan dollars, on mainland travel last year, assuming an average expenditure of $1,300 per trip. Meanwhile, mainland tourists contributed roughly $9 billion, or 275 billion New Taiwan dollars, to Taiwan's economy. The resulting cross-strait tourism deficit approached $55 billion. Providence University tourism professor Huang Zheng-cong noted that while international tourists in Taiwan spend an average of $1,300 per trip, mainland visitors typically spend closer to $1,600 due to longer itineraries. Mainland tourists generally remain in Taiwan for seven days, compared to five days for Japanese visitors and four days for South Korean tourists, driving higher overall expenditure despite a daily average spending of $230.

The cross-strait imbalance is part of a larger structural challenge for Taiwan's tourism industry. Huang estimates that Taiwan's total tourism deficit across all international destinations reached approximately $230 billion in 2025. Taiwan welcomed approximately 8.6 million international visitors in 2025, falling short of pre-pandemic levels by roughly 3 million. Of those missing visitors, approximately 2 million are from mainland China, while combined arrivals from Japan and South Korea remain about 1 million below previous benchmarks. Industry analysts attribute the Japanese shortfall to a depreciated yen and strong Taiwanese outbound demand, whereas the absence of mainland tourists is rooted directly in asymmetric policy restrictions. （Related： Opinion | As Trump's Beijing Visit Looms, Taiwan's Defense Budget Faces Critical Test ｜ Latest ）

Efforts to resolve the cross-strait tourism impasse have repeatedly stalled. In January 2024, Beijing announced plans to allow group tours from Shanghai and Fujian to Taiwan. However, the initiative floundered after Taiwanese authorities requested prior coordination through established cross-strait tourism dialogue mechanisms to ensure service quality, a request that went unanswered by mainland authorities. More recently, China's Ministry of Culture and Tourism published a 10,000-word updated travel contract template for mainland residents visiting Taiwan. While some observers interpreted the document as a precursor to reopening, the Taiwan Affairs Office clarified it was simply a routine update. The office has maintained its stance on the issue, with spokesperson Zhang Han stating that Beijing's sincerity remains unchanged and attributing the ongoing stalemate to Taiwan's ruling Democratic Progressive Party.

Despite these hurdles, Taiwan's hospitality sector has attempted to adapt through structural adjustments focused on domestic tourism. Supported by a relatively stable local economy, current hotel occupancy rates are approaching pre-pandemic levels. However, overall industry performance remains uneven. Approximately 20% to 30% of major hotels are operating at a loss, with most simply breaking even and only a minority generating consistent profits. Industry analysts conclude that the return of mainland Chinese tourists could fundamentally transform the sector's economics and drive comprehensive profitability. Yet, this potential remains bound by the overarching political framework governing cross-strait relations, leaving the timeline for a return to symmetric tourism flows uncertain.

Original Article in Chinese