Taiwan Should Lift Gambling Ban, Tackle $9.7bn Tourism Deficit: Liu Hsi-lin

Taiwan should reconsider lifting the ban on gambling, according to state’s academics and public figures. Last week, the tourist bureau published the latest figures, showing that the tourism deficit – which has been on the rise since 2011 - has hit an all-time high of NT$300bn (US$9.7bn).

“Tourism deficit” stands for the gap between money spent by tourists visiting the state and money spent by the Taiwanese overseas.

Introducing Casinos Could Help Address the Issue: Liu Hsi-lin

Taiwan’s Vice President of the National Kaohsiung University of Hospitality and Tourism, Liu Hsi-lin, believes that introduction of casino gaming could help address the issue. Liu has said that Singapore’s casinos should be used as a representative example. Namely, the city-state’s visitor numbers rose 25% in only four years after Marina Bay Sands had been founded (2009).

Liu further argues that state’s tourism could benefit greatly from the introduction of international theme parks, such as are, e.g., Disney and Universal Studios. In addition, Taiwan’s proximity to Japan and mainland China are an asset hardly to be overlooked by international casino operators.

Lying in Wait: Taiwan’s Tourism Casino Administration Act

Back in 2009, the Executive Yuan passed amendments to the Offshore Islands Development Act (OIDA), allowing offshore islands to establish resort zones with casinos if the establishment is approved by a majority vote. (In order to be adopted, all laws in Taiwan must pass a majority vote in a county-wide referendum).

Three referendums have been held in Taiwan since: in 2009 (Penghu), in 2012 (Matsu), and in 2016 (Kinmen). The first was defeated; the second - approved; the third - defeated.

The Executive Yuan submitted the draft Act to the Legislative Yuan on April 30, 2013. The Act was placed on the priority legislation list, had its first reading and a public hearing, and finally saw proposed revisions from the Democratic Progressive Party (DPP) and Legislator Chen from Matsu (the only offshore island to have approved casino development). After DPP’s commentary, the Act was referred to cross-party consultations.

The time for the consultations has expired long since, with no actions taking place: the Act still remains on the Executive Yuan’s priority legislation list.

To summarize, gambling in the state remains illegal under Article 266 of the Taiwan Criminal Code, and so does operating casinos (under Article 268). Hence, neither the OIDA nor the referendum can be enforced. The Legislative Yuan must first legalize casino gaming and exempt offshore island casino operations from the applicable provisions of the Criminal Code.

A Complicated Relationship

The great majority of tourists coming to Taiwan are Chinese mainlanders. With complicated historical developments entwining the two countries, the Taiwan-People’s Republic of China relations remain strained.

The main cause of the tensions is Taiwan’s opposition to Beijing’s “One China Policy”. Back in 2016, Taiwan adopted the New Southbound Policy, which aims at making it less economically dependent on China - by enhancing ties with Southeast Asian countries, Australia, New Zealand, India, and Pakistan.

Source:

“Academic Says Casinos Can Solve Taiwan’s Tourism Woes”, asgam.com, October 10, 2018.