Asep Darmawan
The landscape of Taiwan’s tourism and transport industries is currently navigating a complex web of interconnected challenges that span multiple regulatory domains and government agencies. From the evolution of mobility service frameworks to the modernization of international visitor experiences, and from vehicle import standards to the expansion of electric vehicle (EV) charging infrastructure, a series of common barriers has emerged. Industry experts and committee members point to fragmented governance, outdated regulations, and insufficient infrastructure coordination—often designed for a different era—as the primary hurdles preventing Taiwan from reaching its full economic potential. However, these challenges also present a significant opportunity for the government to implement regulatory modernization that reflects the needs of a 21st-century economy.
Fragmented Governance and the Need for Horizontal Coordination
Industry experience in Taiwan has long demonstrated how fragmented authority creates systemic inefficiencies. Companies attempting to navigate approval processes frequently find themselves caught between unclear jurisdictional boundaries. A single infrastructure project or innovative service model may require engagement with the Ministry of Transportation and Communications (MOTC), the Ministry of Economic Affairs (MOEA), the Ministry of Environment (MOE), and various local municipal governments simultaneously. While the dedication of these agencies to safety and compliance is well-recognized, the lack of a centralized "horizontal" coordination mechanism often leads to protracted approval timelines and inconsistent guidance.
As Taiwan seeks to deepen its economic partnerships, particularly through the U.S.-Taiwan Agreement on Reciprocal Trade (ART), the importance of efficient regulatory coordination has moved to the forefront of the national agenda. Strengthening cross-agency collaboration is no longer just an administrative preference; it is a strategic necessity to facilitate cross-border commerce and demonstrate Taiwan’s capacity for effective, modern governance. By aligning standards and streamlining procedures, the government can leverage synergies that serve both domestic citizens and international business interests.
Aligning with the U.S.-Taiwan Agreement on Reciprocal Trade
A primary area requiring immediate attention is the harmonization of vehicle standards and the streamlining of customs procedures under the ART. Earlier this year, the United States and Taiwan concluded an agreement aimed at reducing trade barriers, including provisions for zero tariffs and simplified certification for U.S.-made vehicles compliant with Federal Motor Vehicle Safety Standards (FMVSS). However, a significant linguistic discrepancy has emerged in the implementation phase. The English version of the agreement uses the broad term "vehicle," which encompasses passenger cars, commercial vehicles, and motorcycles. In contrast, the Chinese-language version specifies only "passenger car."
This discrepancy risks excluding a wide array of non-passenger vehicles from the benefits of the agreement, leading to inconsistent regulatory treatment and limiting market diversity. The Committee has urged the Executive Yuan and the MOTC to align the Chinese implementation with the full scope of the English agreement. Furthermore, industry leaders have noted that despite the ART commitments, recent policy announcements—including a press release from the MOTC dated February 13, 2026—indicate that U.S.-specification vehicles are still being required to obtain separate domestic certifications for energy efficiency, emissions, and noise. Such redundant requirements are viewed as inconsistent with Article 3.2 of the ART, which seeks to eliminate additional conformity assessment procedures for qualifying products.
In addition to vehicle standards, the "frequent importer" restriction on express shipments remains a point of contention. Under current Ministry of Finance (MOF) regulations, duty exemptions are subject to numerical limits that may contradict the commitments made under Article 2.14 of the U.S.-Taiwan Initiative on 21st-Century Trade. Removing these quotas is seen as a vital step in facilitating the seamless flow of cross-border trade.
Elevating Taiwan’s Tourism through Integrated Development
Taiwan has set an ambitious target of attracting nine million international visitors by 2026. While initiatives like the "Taiwan Tourism 2030 White Paper" and the "Tropic of Cancer Peak Flagship Project: Smile South Taiwan" have laid a strong conceptual foundation, the sector continues to grapple with regulatory complexity. To transform Taiwan into a premier Asian destination, the Committee proposes designating integrated-resort (IR) development as a priority national project.
An integrated resort combines hotels, convention centers, entertainment, and retail into a single destination. To succeed, these projects require a cross-ministerial task force under the National Development Council to act as a "single window" for investors. This would help identify regulatory barriers, coordinate agency responsibilities, and, crucially, accelerate the environmental impact assessment (EIA) process. Currently, fragmented reviews between central and local governments often lead to significant delays in zoning and implementation.
To support these large-scale investments, the government is encouraged to:
- Strengthen Investment Incentives: Provide targeted tax breaks and financing for Build-Operate-Transfer (BOT) projects to improve the viability of integrated resorts.
- Attract International Talent: Expand the eligibility for the Employment Gold Card to include specialists in tourism planning and resort management.
- Enhance Infrastructure: Ensure that potential resort sites, such as the Dapeng Bay National Scenic Area, are supported by robust transportation links. This includes expanding the high-speed rail to Pingtung and improving ferry services to offshore destinations like Liuqiu.
Modernizing Mobility and Digital Service Models
The rise of digital technology—including AI, smartphone applications, and real-time connectivity—has revolutionized global transportation. However, Taiwan’s existing regulatory frameworks often reflect traditional operating models that do not accommodate these innovations. One of the most pressing issues is the modernization of taxi licensing and pricing. Current caps on taxi licenses and inflexible pricing structures often fail to meet dynamic market demand, leading to service shortages during peak hours and wasted resources during lulls.
The Committee recommends a shift toward "smart taximeters" or "soft meters"—GPS-based systems that facilitate transparent payment and integrate with digital trip-planning tools. Furthermore, current "territorial restrictions" prevent drivers from operating efficiently across municipal jurisdictions, creating service gaps for passengers traveling between cities. By enabling cross-jurisdictional operations and supporting demand-responsive transit, Taiwan can improve resource allocation, especially in underserved rural areas.
Looking toward the future, the establishment of a regulatory sandbox for autonomous vehicles (AV) is considered essential. While large-scale AV deployment is still years away, early pilot programs for commercial passenger services would allow Taiwan to develop evidence-based safety protocols. This proactive approach ensures that the nation is ready for the transition from testing to practical, commercial deployment.
Accelerating Electrification and Road Safety Standards
Sustainability is a cornerstone of Taiwan’s transport policy, yet the transition to electric vehicles faces practical infrastructure hurdles. As of 2025, Taiwan has over 130,000 registered Battery Electric Vehicles (BEVs). Research from the Taiwan Power Company (Taipower) shows that 80% of these owners rely on home charging. Despite a 2019 mandate requiring new buildings to reserve space for EV charging, a lack of technical specificity has led to major problems.
Many developers currently install conduits with diameters as small as 18–22 mm. However, a standard 7kW charger requires a 28 mm conduit to accommodate the necessary wiring safely. The Committee has called for an amendment to the Building Technical Regulations to explicitly require a minimum 28 mm diameter for pre-embedded wiring, ensuring that new infrastructure is actually functional for residents.
Parallel to the EV transition is the critical need for improved road safety. In recent years, traffic accidents have become a significant social concern. Industry experts suggest that Taiwan’s road-marking standards are outdated. Current hot-mix markings often fail to provide adequate visibility in rainy or nighttime conditions. By adopting international standards (such as CNS 15834) and utilizing preformed, high-performance retroreflective materials, Taiwan can significantly reduce accidents and lifecycle maintenance costs.
Enhancing the International Visitor Experience
The arrival experience at Taiwan’s international airports is often the first impression a visitor has of the country. Currently, airport ground transportation relies heavily on queue-based dispatching, which can lead to long wait times and limited options. While the MOTC has begun introducing e-hail services, these must be consistently implemented across all international gateways to be effective.
Additionally, the "last mile" of the visitor journey involves financial transactions. While progress has been made with contactless payments on MRT systems, many small-scale tourism operators and traditional markets remain cash-heavy. Expanding the acceptance of international credit cards and digital wallets is vital for a seamless visitor experience.
Finally, to support Taiwan’s position as a hub for multinational corporations (MNCs), a "Trusted Corporate Sponsor" fast-track visa mechanism has been proposed. Currently, bringing global teams—including those from non-visa-exempt jurisdictions—to Taiwan for corporate events involves a complex, multi-agency process. This often drives high-value corporate tourism to competing hubs like Singapore or Tokyo. By allowing verified businesses to act as guarantors for their employees, Taiwan can streamline entry and capture vital revenue for its MICE (Meetings, Incentives, Conferences, and Exhibitions) sector.
Conclusion: A Strategic Path Forward
The recommendations put forth by industry leaders emphasize that Taiwan’s path to a modernized transport and tourism sector lies in the hands of cross-ministerial cooperation. By breaking down the silos between agencies and aligning domestic regulations with international trade commitments, Taiwan can build a more resilient, sustainable, and competitive economy. The integration of digital mobility, the expansion of high-quality tourism infrastructure, and the commitment to safety and sustainability are not just goals—they are the essential pillars of Taiwan’s future growth. Through coordinated reform, the government can ensure that the nation serves its citizens, visitors, and business partners with the efficiency and innovation that the modern era demands.
Lina Irawan
Evan Lee Salim
