Taiwan hotel shares were up sharply on Friday with expectations of droves of people arriving in Taiwan from Japan.
The heavily increased profit in Taiwan hotels is so different from the reverse movements in global economic due to an earthquake and a tsunami in Japan. Not only is the stock market affected but even food markets are shocked. However, many people who had toured in Japan or who are relatives of government workers fly to Taiwan to avoid the unsafe aftermath accompanying the earthquake.
“Taiwanese media reported Friday that the U.S. had evacuated some citizens from Japan to Taiwan, leading investors to buy Taiwan hotel shares in anticipation that more would be coming.”
There will be more and more people from all over the world leaving Japan and arriving in Taiwan. Some people think that the refuges will give a lift to hotel business in Taiwan and will help Taiwan hotel make a great profit. “Some local hotels also have plans to launch special packages for Japanese planning extended stays in Taiwan. Japan has long been a crucial source of revenue for Taiwan’s hospitality industry.” The refuges from Japan looks like a gift for Taiwan.
However, I don’t think the business should consider their profit in the first place in such a terrible disaster. The disaster brings the refuges not only physical strike but also mental strike. In my opinion, the Taiwan hotel should focus on pacifying the refuges and helping them recover from the terrible nightmare. The ethic should play a more vital place than profit in this special situation.
http://blogs.wsj.com/exchange/2011/03/18/taiwan-hotels-prepare-for-u-s-flight-from-japan/
It's a little ugly to think that a company would take advantage of a tragic event in such a way. Yes, people are going to Taiwan in order to protect themselves, but it is not necessary to make a market out of it at this point. Considering the circumstances, hotels in the region should offer far lower rates than usual instead of simply offering package deals.
ReplyDeleteConsidering that the demand for rooms is inelastic in this case, the hotels are taking advantage of it.
It is overwhelming to see the impact that the earthquake and tsunami in Japan has had on the Hotel/Restaurant/Leisure industry. While Taiwan is making profit off of the innocent people who lost their homes, it is interesting to see how a natural disaster has the ability to shift markets to the degree that it did. I agree with Wonho that it may be unethical to charge people who were impacted by the earthquake and tsunami for a hotel room, but from a business standpoint, it is necessary for Taiwan to do so. It will be interesting to see how else the natural disaster in Japan will effect other industries as well.
ReplyDelete