Taiwan - background market data

Population — just over 22.7 million. Language, Mandarin Chinese (official), Min Nan Chinese (Taiwanese)

Economy — Taiwan is said to boast the third-largest foreign currency reserves of any country in the world and its balance of trade still registers a huge surplus. Its per capita gross national product stands at getting on for US$25,000, a highly respectable figure for South East Asia and well up on the US$2,500 or so of just 20 years ago. It is probably around US$6,000 in China. Incomes per capita are said to be between 10 and 20 times more than those on the Chinese mainland. Of the total population of just over 22.7 million, 99.9 per cent of which is on Formosa, unemployment is under four per cent. Post SARS, which impacted the whole South East Asia zone, GDP growth over the past few years has been pretty good. It was 5.9 per cent in 2004 and was forecast to be 5.4 per cent in 2005. Inflation is low, as are interest rates.

Currency — New Taiwan Dollar (NT$): UK£1= NT$59.5914, E1= NT$40.6088 and US$1= NT$31.2800, as of late April 2005. Exchange rates are still a long way away from what they once were, but things have improved significantly just recently. The currency, the ëNew Taiwanese Dollarí, or ëNTí for short, is relatively weak as it is effectively pegged to the US dollar, which is currently extremely weak, particularly so against a strong euro. That means Taiwan industry has at least received a major boost to its competitiveness on that score. Indeed, the NT$ is a lot weaker now against the US dollar than it has been over the past 20 years. In the mid-80s, a typical exchange rate would register around NT$40 to the US dollar. Then, 10 years or so ago, which actually was the last time IBI took a close look at the market, that rate fell to around NT$25-27. Now, as of March 2005, the rate perhaps looks a little more attractive for inward investment at US$32.7.

Boating Geography — In all, Taiwan covers something like 13,840m2 (36,000km2) of territory. That includes the Taiwanese mainland (Formosa), which lies 645 kilometres (400 miles) east of Hong Kong and 160 kilometres (100 miles) or so off the Chinese coast across the Taiwan or Formosa Strait, and many small islands under Taiwanese jurisdiction, most of which are relatively close to the Taiwanese mainland. But a few, such as the Kinmen, Mazu and Dongyin islands, are actually very close to the Chinese mainland. The Taiwanese coastline measures some 1,566 kilometres (970 miles). There is very little leisure boating activity in the country thus far, although such recreational pursuits seem to be making inroads into the aspirational thinking of the Taiwanese. Sportsfishing probably generates the most interest and recreational diving is growing in popularity, particularly in beauty spots such as the Penghu archipelago, which is just off the mainlandís west coast. Taiwanís relationship with the sea for trade is well established. Moreover, the country apparently boasts the worldís seventh-largest fishing fleet. As far as home demand is concerned, Taiwan is hardly off the blocks. Taiwanese leisure activity tends to be mostly indoors, but outside the most popular ways to spend time are leisure motoring, motorsport and fishing. And marine leisure to date really only involves very limited sportsfishing, windsurfing and dinghy sailing activity.

Restrictions — Recently the government changed the laws relating to imported boats up to 24m (80ft). Individuals can import such things now, whereas it used to be that only companies with the appropriate licenses could do such things, not that many licenses were ever issued. Now ëmechanical boatsí are subject to duties that vary from around eight to 15 per cent, although RIBs strangely come under the floating plastic category and are exempt. Boat imports to some of the smaller Taiwanese islands, such as the Penghus, are also said to be duty free. Everything sold in Taiwan, boats and equipment included, is also subject to a VAT-like five per cent ëbusiness taxí.

Market Outlook — If leisure boating is to take off in Taiwan there will need to be some major investment in infrastructure. It was not that long ago that the Taiwanese government lifted its ban on pleasureboating and the situation is still not quite as open as it seems. Anyone can now own a boat, but only if they have a place to keep it. But marina berths are few and far between, although a number of marina projects have been muted. To date there is but a handful of small marinas offering a combined total of less than 600 berths, although the Taiwanese government is now said to be actively encouraging marina development, although any such projects must be designed and built properly as the region is often hit by typhoons.