Five-Star Hotels in Kenting Reported Loss, 1st Time in 22 Years |營收逐年減少 墾丁福華飯店22年首虧損

The tourism market in southern Taiwan continues to slump. According to the latest statistics on the five-star hotel in Kenting, the Howard Beach Resort Kenting generated NT$ 100 million less in revenue compared to the previous year, and reported loss for the first time in 22 years. The Kenting Chateau Beach Resort and Caesar Park Kenting also saw around 10 percent less in revenue this year, which makes it their worst year since the famous movie "Cape No. 7" was released and helped boosted Kenting's popularity.


As the government implemented a number of subsidies in the local tourism market, southern Pingtung and Kenting saw mild recovery in their tourism industry. The occupancy rate of some hotels has gone up by 8 percent. However, the overall occupancy rate across all hotels has dropped compared to the previous year. The Howard Beach Resort Kenting has reported loss for the first time in its 22 years of operating.

The fact of the matter is, the tourism industry as a whole isn't generating much revenue, and the operating cost is creeping up. It's very difficult for tourism professionals these days.

In the year before last year, the Howard Beach Resort Kenting generated a revenue of about NT$ 600 million. But the revenue has been declining, down to NT$ 500 million last year, and this year, it only generated NT$ 400 million, a reduction of 20 percent. Another five-star hotel, the Caesar Park Kenting is comparatively less affected, seeing a 10 percent reduction in revenue, while the Kenting Chateau Beach Resort also saw a 15 percent reduction in the revenue. This marks the worst year for the hotels since the movie Cape No. 7 launched and helped boosted Kenting's popularity.

The drop in revenue in the past five years is considerable. Currently, the hotel is not at a loss, and the revenue is down 10 percent compared to that of last year.

There are less Mainland Chinese tourists as well as independent travelers. And in terms of domestic traveling, the market has been affected since the cutting of pension for retired public servants, teachers and military personnel.

Many tourism industry professionals believe that massive increase of hostels in recent years have led to a severe market imbalance after the number of incoming Chinese tourists dwindled. The recent amendment in labor law and the cutting of pensions have also affected domestic traveling. They hope the Taiwan Lantern Festival held in Pintung next year will stop the market from slumping.