Taiwan’s April earthquake deals new blow to tourism industry

Chen Li-chia, who runs a bed and breakfast in Taiwan’s Hualien county, is used to small tremors that interrupt her work, but this time she felt something was different.

“The shaking got stronger and stronger and lasted longer. When rescue vehicles arrived, I got scared,” she said. “We could hear rocks falling everywhere and there was smoke and dust all around. There were huge landslides in front of us and behind us.”

Chen, who came out of his home to assess the damage, had just survived the magnitude 7.4 earthquake that struck Taiwan on April 3, the strongest quake to rock the island in 25 years.

“I’ve never experienced such a strong earthquake in my life. It was really scary,” said the 60-year-old man.

Now survivors like Cheng are facing new challenges: Tourists have cancelled trips en masse and tour groups have disappeared.

For many residents of Hualien, whose economy relies on tourism for 70 percent, the situation is fast becoming an existential threat.

“The situation is terrible. There are no tourists,” Chen said. “They’re too scared to come.”

Hardest hit by the quake was Hualien County, which attracts millions of tourists each year to the towering mountains and waterfalls of Taroko Gorge, China’s main tourist attraction.

But once-busy mountain passes and footpaths to valleys are blocked by debris, and large areas of Taroko National Park remain closed.

A woman surnamed Lai, who runs a restaurant near the entrance to the canyon, said her restaurant, which was once full, now sits empty.

“We really hope the national parks will reopen, but if they don’t, there’s nothing we can do,” she said. “It feels like there’s no end in sight.”

The damage to the area has also caused problems for local tour guides such as Liang Ziyunchu.

“Our usual tour packages are centered around Taroko,” he explained. “Since the earthquake, all bookings have been cancelled.”

Visitor numbers at Hualien’s scenic spots have fallen 85 percent since last year, according to local authorities, and Liang said guides like him, some of whom also work as taxi drivers, are finding it harder to make a living.

“Business is down to 30 to 50 percent of what it was before,” he said. “The industry here is so tough that many of my friends have left Hualien to work elsewhere. I’m also thinking of moving to another province.”

This trend is reflected across the tourism sector, with the Hualien Hotel Association reporting that occupancy rates have fallen to just 5% since the quake, an opinion echoed by local hostel manager Howard Ye.

“About 90 percent of foreign tourists who come to Hualien come for the Taroko Gorge, so with this major attraction temporarily closed, Hualien has lost much of its appeal for tourists,” he said. “We can only be patient and wait.”

Despite Hualien residents’ hopes, local officials estimate it could take years for tourism to return to pre-earthquake levels.

“A full recovery may take five to 10 years,” Zhang Zhixiang, director of the Hualien City Tourism Bureau, told CNBC Travel.

To speed the recovery, Taiwan’s local and central governments have introduced programs to support local businesses and encourage tourists to return, and the government is guaranteeing loans and subsidizing interest rates for local businesses that need them.

Starting in July, tourists visiting Hualien County will also be eligible to receive accommodation subsidies of up to NT$1,000 (US$31), while travel agencies can receive up to NT$20,000 (US$618).

Nevertheless, locals are concerned the measures may not be enough. Stephanie Chan, president of the Hualien Hotel Association, said the association expects hotel occupancy rates to return to 40-50% this summer in a best-case scenario.

Continued coverage of the quake, social media videos of collapsed buildings and the roughly 1,500 aftershocks that have hit Taiwan since the initial quake have not helped restore tourist confidence.

Even if tourists want to visit Hualien, it’s harder to get to than before: About 70 percent of tourists arrive in Hualien from northern Taiwan, but the earthquake damaged the road connecting Hualien to Taipei, Chang said.

Roads are still functional at certain times and the county is accessible by train and plane, but the damage is extensive.

Chen said the Hualien Tourism Bureau is working to rebuild the city and promote Hualien as a safe tourist destination.

“If this trend is not reversed and tourists’ confidence in Hualien is not restored, losses are estimated to reach about NT$15 billion by the end of the year,” he said.

The impacts of the earthquake have reverberated far beyond Hualien’s tourism industry. “Tourism is the lifeblood of Hualien,” Chan explained.

When tourism suffers, the rest of the region suffers as well.

The market’s usual customers are locals, who are suffering because they are losing money, explained Chen Wenzhong, a vendor at the market. “Without tourists, our business will suffer greatly.” Lin Yami, a fish seller at the town’s wet market, said her sales have fallen by two-thirds.

Nevertheless, Hualien residents hope tourists can return soon and life can return to normal.

Standing in an empty restaurant at the entrance to Taroko Gorge, Yorimizu explained that he still believes in the future.

“If it doesn’t work out here, I’ll look elsewhere. If that doesn’t work, I’ll look for a job. No matter how much I earn, as long as I can survive and live frugally, I’ll be fine,” she said, wiping tears from her eyes.

“There’s hope,” she said. “We will find a way.”