Dan's Papers - July 4, 2008 - Taiwan: A Place to Rest, Invest

The Euro is strong, the dollar is weak. Gas prices make the family trip across the country more expensive than flights to Brazil. So where can a traveler go to have an unusual yet exotic trip that won't equal the down payment on a home in the Hamptons?

How about Taiwan? From the seaport cities of Taipei and Kaoshung, to the seaside and lakeside resorts along the East Coast, Taiwan offers much diversity and undisturbed natural beauty that will impress even the most seasoned traveler. And for those interested in real estate investing, Taiwan could present another opportunity.

Because of the relatively small size of this island, it is possible to see much of Taiwan in just two weeks. The country's major airline, Eva Air, goes direct from Newark Airport, across the North Pole, stopping only an hour to refuel in Anchorage, and lands in the capital city of Taipei, in a total of about 18 hours. Taipei, which has a population of about 2.6 million people, is a city on the rise, and getting more Westernized every day. During a visit 10 years ago, I found that few people spoke English, the downtown streets were overcrowded with cars and motor scooters, and there was a big pollution problem. On a recent visit, I found that most Taiwanese spoke English, and that a modern, clean new subway system has alleviated much of the above ground traffic problems. Taipei has established an office of greenhouse gas reduction to help control pollution.

With a real estate market that's growing steadily, Taipei is now a fascinating combination of new skyscrapers and high-tech office buildings, mixed in with ancient temples, like the famous Longshan Temple built in 1738.

Taipei has many five-star hotels, among them the Grand Formosa Regent Taipei Hotel with its elegant Wellness Spa, and the Grand Hyatt Taipei, which is the largest Hyatt on the international profile. Blended into this modern luxury is the historic Grand Hotel, a classical-style Chinese palace that's the former guesthouse of Madame Chiang Kai-shek.

Taipei boasts the world's tallest building, called "Taipei 101," which opened in 2004, and has 101 floors, including office space and many new retail stores. Located in the Shinyi financial district, it is built to look like a tall stalk of bamboo, in eight sections, which is a lucky and prosperous number in the Chinese culture.

Real estate, particularly commercial, in Taipei as well as in the rest of Taiwan, is on the rise, especially with the main land Chinese looking to buy and invest there.

"The real estate market is booming here, after our recent election of President Ma, last March," said Michael Liu, a spokesman for Taipei 101. "Our occupancy rate is 80 percent, after three years in operation. Our shopping mall is fully occupied and we have a long waiting list. In this building we also have the Taiwan Stock Exchange, and we've attracted many foreign companies, like ING Group of Poland, the biggest insurance group in the world, and KPMG, one of the top three accounting firms in the world, and also Bank of America."

Philip Chao, Deputy Director of Taiwan's International Tourist Bureau, said that economically and politically, Taiwan had gone through some turmoil over the past decade, when for the first time in 50 years, the Kuomintang (KMT) Party was not in power. But with the recent election in 2008, the political power reverted back to the KMT, and "most people here think that's good, and that the economic picture will improve," said Chao, who added that tourism has risen steadily over the past five years. Now, Taiwan's tourism is about 30% from Japan, 14% from Hong Kong, 11% from the U.S., 5% from Europe and 5% from Korea.

"In 2008 we'll open the door to Chinese businesses, which are booming, especially in the Coastal provinces," he said. "We need this linkage with China, especially since the old hard-line group has passed away, and China is now closer to capitalism."

Another boon to economic growth, as well as tourism, is the construction of the new 2009 World Games Stadium, in the East Coast seaport of Kaoshung that will seat up to 50,000 and will host sports from rugby to flying disc.

Outside the metro areas, 65% of Taiwan is covered in trees. Since Taiwan is near the Tropic of Capricorn, there is a sub-tropical climate, with many beach resorts along the east and south coast, from Kentting National Tropical Park, with sailing, swimming and jet skis, to Touchen Beach, Fulone Beach, Chi-Jin Beach in Kaoshung, and Chi-Bon Hot Spring. Sun Moon Lake is among the top 10 tourist spots in China. For more information on traveling in Taiwan, call the Taiwan Tourist Bureau or check their website at www.go2taiwan.net.