Taiwan is studying the possibility of ending its ban on casinos in order to boost its tourism industry, a move nations such as Singapore have already taken to exploit the boom in Chinese travel overseas.
The Council for Economic Planning and Development is evaluating the impact of lifting the ban on casinos, with special consideration being paid to social and family values, a CEPD spokeswoman said.
"Casino licensing is just one of the government's options aimed at raising the tourism revenue," she said. "We are employing a prudent manner to study whether and how the licensing will help achieve the goal of boosting tourism. No decision has been made."
The council is scheduled to release a report in the second half of this year.
In 2005, tourism revenue in Taiwan totalled $12.5-billion, little changed from 2004, accounting for 3.17 per cent of the island's gross domestic product. The 2006 figures will be released in July or August.
The CEPD spokeswoman said the casino liberalization is a complicated issue for a society where gambling is viewed badly but which allows lotteries for welfare purposes.
Chu Yen-min, head of research at KGI Securities, said he supports casino operations in Taiwan. "Casinos in neighbouring countries, such as Macau, Singapore and South Korea, are attracting many foreign visitors. I think casinos will help the local tourism industry," Chu said.
The Chinese enclave of Macau now rivals Las Vegas as one of the world's largest gambling centres, with gaming revenue soaring 22 per cent to $8-billion in 2006.
"The local tourism sector wants to accommodate more mainland Chinese visitors. Casinos will certainly become a big attraction once the Taipei government allows more Chinese tourists to visit the island," Chu said.
Taiwan is negotiating with Beijing on relaxing tourism controls. It currently grants entry permits only to Chinese who are studying overseas, who are permanent residents of third countries or who are travelling on to other destinations.
The island has banned direct trade and transport exchanges with China since the two sides split in 1949 at the end of a civil war.
