Suro Senen
Taiwan’s tourism and transport sectors currently stand at a critical juncture, facing a complex web of interconnected challenges that span multiple regulatory domains and government agencies. From the modernization of mobility service frameworks to the refinement of international visitor experiences, and from vehicle import standards to the development of large-scale tourism facilities, the island’s progress is frequently hampered by a common set of barriers: fragmented governance, outdated regulations, and an infrastructure coordination system designed for a different economic era. While Taiwan’s government has demonstrated a clear commitment to safety and compliance, the industry now faces a pressing need for enhanced horizontal coordination to meet the evolving demands of a globalized economy.
The systemic inefficiencies created by fragmented authority are perhaps most visible to companies navigating the approval processes for innovative solutions. Jurisdictional boundaries between agencies are often blurred, requiring businesses to engage with multiple authorities—often with overlapping or conflicting requirements—to identify a viable pathway forward. As Taiwan seeks to deepen its economic partnerships, particularly through the U.S.-Taiwan Agreement on Reciprocal Trade (ART), the ability to provide efficient, transparent regulatory coordination has become a benchmark for the nation’s capacity for effective governance.
Harmonizing Trade Standards and Streamlining Customs Procedures
A primary pillar of Taiwan’s economic modernization involves the successful implementation of the U.S.-Taiwan Agreement on Reciprocal Trade (ART). Concluded earlier this year, the ART includes landmark provisions for zero tariffs and simplified certification for U.S.-made vehicles that comply with Federal Motor Vehicle Safety Standards (FMVSS). However, a significant linguistic discrepancy between the English and Chinese versions of the agreement threatens to limit its effectiveness. While the English text uses the broad term "vehicle"—encompassing passenger cars, commercial vehicles, and motorcycles—the Chinese version specifies only "passenger cars." This inconsistency risks excluding a wide range of non-passenger vehicle categories, thereby limiting market diversity and the intended reciprocal benefits of the trade deal.
Beyond linguistic alignment, the Committee has identified a need to eliminate redundant documentation for U.S.-manufactured products. Despite ART Article 3.2, which commits Taiwan to accepting test reports and certificates from recognized U.S. conformity assessment bodies, recent policy developments suggest a retreat from these commitments. A Ministry of Transportation and Communications (MOTC) press release dated February 13, 2026, indicated that U.S.-specification vehicles must still obtain separate domestic certifications for energy efficiency from the Ministry of Economic Affairs, as well as emissions and noise certifications from the Ministry of Environment. These "double-certification" requirements create significant market entry barriers and contradict the spirit of the ART, which aims to eliminate redundant assessment procedures.
Furthermore, trade facilitation is currently hindered by "frequent importer" restrictions on express shipments. Under current Ministry of Finance (MOF) regulations, duty exemptions are capped based on numerical thresholds. This restriction appears inconsistent with Taiwan’s commitments under Article 2.14 of the U.S.-Taiwan Initiative on 21st-Century Trade, which advocates for simplified entry procedures for express shipments without numerical limits. Removing these quotas is essential for Taiwan to demonstrate its commitment to international trade standards and to support the growing volume of cross-border e-commerce.
Elevating the Tourism Industry Through Integrated Resort Development
Taiwan’s tourism sector has received significant policy attention through the "Taiwan Tourism 2030 White Paper" and the "Tropic of Cancer Peak Flagship Project: Smile South Taiwan." While these initiatives provide a clear roadmap, the actual development of world-class tourism facilities remains bogged down by regulatory complexity. The Committee proposes that the National Development Council (NDC) designate "integrated-resort development" as a priority national project for the 2026–2029 period.
The development of such resorts—which combine accommodation, entertainment, and commercial spaces—requires a level of inter-agency coordination that current structures cannot provide. The establishment of a cross-ministerial project office would serve as a "single-window" to identify regulatory barriers and accelerate the Environmental Impact Assessment (EIA) process. Currently, fragmented reviews between central and local governments lead to extensive delays in zoning and implementation. Early engagement with local stakeholders, facilitated by the central government, is viewed as a vital step in improving efficiency while maintaining rigorous environmental oversight.
To support these large-scale investments, Taiwan must also modernize its talent attraction and financing frameworks. Expanding the eligibility criteria for the Employment Gold Card to include international experts in tourism planning and management would address the current talent gap. Additionally, providing targeted tax incentives for Build-Operate-Transfer (BOT) and public-private partnership (PPP) projects would improve the financial viability of high-capital developments. Infrastructure connectivity is equally vital; for instance, the revitalization of the Dapeng Bay National Scenic Area depends heavily on the expansion of the Kaohsiung MRT to Pingtung and the improvement of cruise terminal facilities.
Modernizing Digital Mobility and Fleet Electrification
The digital revolution in transportation is currently outpacing Taiwan’s regulatory framework. Outdated taxi license caps and inflexible pricing structures have created service gaps, particularly during peak hours, while preventing the efficient balancing of supply and demand. The Committee recommends a shift toward evidence-based policy development, including the authorization of "smart taximeters" or "soft meters"—app-based systems utilizing GPS technology—to facilitate payment processing and integrate with digital trip-planning tools.
A significant hurdle remains the territorial restrictions that limit cross-city transport services. These constraints reduce operational efficiency and exacerbate driver shortages by preventing vehicles from operating seamlessly across municipal jurisdictions. Modernizing these frameworks to allow for cross-jurisdictional routing would particularly benefit underserved areas through the development of demand-responsive transit services.
In terms of future-proofing, the Committee urges the government to build upon the Unmanned Vehicles Technology Innovation Experimentation Act by establishing a regulatory "sandbox" for the commercial deployment of autonomous vehicles (AVs). While large-scale AV adoption is still years away, creating a controlled environment for pilot programs in passenger services is necessary for Taiwan to remain a leader in mobility technology.
Simultaneously, the electrification of commercial fleets must be accelerated. Because buses and taxis have significantly higher utilization rates than private cars, their transition to electric power offers a high-impact pathway for carbon reduction. As of 2025, registered Battery Electric Vehicles (BEVs) in Taiwan exceeded 130,000. However, the upfront investment costs remain a barrier for fleet operators. The government could bridge this gap by increasing targeted subsidies and introducing usage-based incentives, such as priority lane access and designated loading zones for electric commercial vehicles.
Enhancing the International Visitor Experience
Taiwan aims to attract nine million international visitors in 2026, a goal that requires a seamless end-to-end travel experience. The current airport ground transportation system, which often relies on queue-based dispatch and limited operator participation, is a frequent point of friction for arriving travelers. While the MOTC has begun introducing e-hail services at airports, the Committee emphasizes that these services must be deployed consistently across all international airports—not just at select hubs—to ensure a uniform quality of service.
Payment accessibility is another area requiring urgent attention. While progress has been made with contactless MRT payments in major cities, gaps remain in the broader tourism ecosystem. The Committee recommends that the government facilitate the integration of international credit cards and mobile wallets into a wider range of services, including taxis, regional rail systems, and small-scale vendors.
For the high-value MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, the Committee suggests a "Trusted Corporate Sponsor" fast-track mechanism. Currently, multinational corporations (MNCs) face complex, multi-agency processes when bringing in regional employees from non-visa-exempt jurisdictions for internal meetings. This administrative burden often forces companies to relocate their events to competing hubs like Singapore or Tokyo. By allowing verified businesses to act as guarantors for their employees’ short-term entry, Taiwan could capture significant revenue for its MICE sector while maintaining national security standards.
Building Standards and Road Safety for a New Era
Finally, the physical infrastructure of Taiwan must be updated to reflect modern safety and technology standards. A critical issue has emerged regarding EV charging infrastructure in new buildings. While 2019 regulations mandate that new constructions reserve space for EV charging, they do not specify the diameter of the wiring conduits. In practice, many developers install conduits as small as 18–22 mm, which are insufficient for the 28 mm requirement needed for a standard 7kW charger. The Committee recommends an immediate amendment to the Building Technical Regulations to mandate a minimum conduit diameter of 28 mm, ensuring that residents can actually utilize the "EV-ready" features of their buildings.
Road safety also requires a transition to higher-performance materials. Current road-marking standards, governed by Chinese National Standards (CNS), often prioritize material composition over functional performance. Specifically, many markings lose visibility during nighttime or rainy conditions because they lack wet-retroreflective properties. By aligning domestic standards with international performance-based specifications (such as CNS15834), Taiwan can reduce traffic accidents and the associated social costs. Preformed road markings, which offer superior durability and visibility compared to traditional hot-mix markings, represent a sustainable investment that reduces long-term maintenance costs and improves safety for all road users.
Conclusion: A Call for Integrated Governance
The challenges facing Taiwan’s tourism and transport sectors are not insurmountable, but they do require a fundamental shift in how the government approaches regulation. The era of "siloed" governance—where the MOTC, MOF, and Ministry of Environment operate independently—is no longer compatible with the needs of a modern, interconnected economy. By prioritizing cross-ministerial collaboration, harmonizing international trade standards, and modernizing infrastructure requirements, Taiwan can create a more resilient, accessible, and competitive environment for citizens and visitors alike. The recommendations outlined by the Committee serve as a roadmap for this transformation, ensuring that Taiwan’s transport and tourism sectors are not just participants in the global economy, but leaders in innovation and efficiency.
Rifan Muazin
Reynand Wu
