More than a decade ago, during Ma Ying-jeou’s presidency, cross-strait relations between mainland China and Taiwan began to warm. Increased exchanges led to the opening of Taiwan’s borders to mainland Chinese tourists, sparking a golden age for Taiwan’s tourism industry. At its peak, over three million tourists from mainland China visited Taiwan annually, contributing enormously to Taiwan’s economy—outspending tourists from all other countries combined.
After Tsai Ing-wen took office, cross-strait relations cooled. In 2019, the Chinese government suspended travel to Taiwan. Previously, mainland visitors could travel to Taiwan in tour groups or independently (for select cities). 
Shortly after assuming office, Tsai Ing-wen launched the New Southbound Policy, aimed at reducing Taiwan’s economic dependence on mainland China by offering visa exemptions to travelers from Southeast Asian countries. However, the combination of the mainland travel ban and the global pandemic dealt a severe blow to Taiwan’s tourism industry, bringing it almost to a standstill.
As the pandemic subsided, more tourists from Southeast Asia began to visit Taiwan, helping the tourism industry gradually recover. By this year, the number of visitors to Taiwan had reached roughly two-thirds of the pre-ban levels. 
The chart above shows data from 2023. With the success of the New Southbound Policy, tourist arrivals from Malaysia, Singapore, the Philippines, and Vietnam surged dramatically—reaching two million visitors by 2024.
Taiwan’s economy, heavily reliant on its high-tech industry, has been resilient against the shocks to its tourism sector. Still, the New Southbound Policy has opened up new channels for economic and cultural exchange between Taiwan and Southeast Asian nations. Without such forward-looking policies, Taiwan’s economy would likely be in a much more difficult position today.
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