Steven Pan Advocates for Policy Changes to Address Tourism Sector Labor Gap
Steven Pan (潘思亮), Chairman of Silks Hotel Group and a prominent board member of the Chinese National Association of Industry and Commerce, has urged the Taiwanese government to relax work restrictions for foreign students and interns in order to address the growing labor shortage in Taiwan’s tourism industry.
Speaking at a press conference on Tuesday after a meeting with business leaders and Premier Cho Jung-tai (卓榮泰), Pan suggested that Taiwan could adopt a more flexible approach to foreign workers, similar to the policy implemented in Japan by the late Prime Minister Shinzo Abe. Pan emphasized that such a move would benefit Taiwan’s tourism industry, which continues to face staffing challenges.
Labor Shortage in Taiwan’s Tourism Industry
Pan highlighted that the tourism sector, which has historically been a significant contributor to Taiwan’s economy, is currently struggling with an acute labor shortage. According to a recent survey by Taiwan’s Ministry of Labor (MOL), the country is facing a deficit of 66,300 jobs, with the service industry—particularly tourism—bearing the brunt of these vacancies. This shortage is particularly concerning as the tourism sector recovers and grows, demanding more skilled workers.
Pan argued that by easing work restrictions for foreign students, Taiwan could tap into a valuable pool of labor. He pointed out that Japan’s success in using foreign workers to boost its tourism industry could serve as a model for Taiwan, helping to drive growth and reduce labor gaps.
Japan’s Successful Foreign Worker Policy
Pan referenced the policies implemented by Shinzo Abe, which allowed foreign students and interns to work in Japan for up to five years. According to Pan, this initiative significantly contributed to Japan’s tourism sector, making it the second-largest industry in terms of foreign trade surplus, just behind automobiles.
Although Pan did not go into specifics regarding how Taiwan should modify its current policies, his remarks highlighted the potential benefits of a more open approach to foreign student employment.
Current Employment Rules for Foreign Students in Taiwan
Under Taiwan’s current Employment Service Act, foreign students studying at Taiwanese universities are allowed to apply for work permits, enabling them to work up to 20 hours per week during the semester and full-time during the summer and winter vacation periods. However, foreign students enrolled in short-term language programs are not eligible to work in Taiwan.
These regulations have been in place to ensure that foreign students focus on their studies. However, the tightening of labor supply in various industries, including hospitality and tourism, has prompted business leaders like Pan to advocate for changes that would allow foreign students to contribute more directly to the local economy.
The Path Forward: Policy Reforms for Taiwan’s Workforce
The growing labor gap in Taiwan presents both a challenge and an opportunity. For industries such as tourism, relaxation of work restrictions for foreign students could provide immediate relief and help businesses meet demand. Pan’s suggestions are just one part of a broader conversation about how Taiwan can address its labor market challenges, with many calling for a more comprehensive reform of labor policies to foster growth in key sectors.
| Key Data on Taiwan’s Labor Shortage | Sector Affected | Job Vacancies | Impact |
|---|---|---|---|
| Total Job Vacancies | Various Sectors | 66,300 | Labor Shortage |
| Service Sector (Tourism) | Tourism & Hospitality | 53.8% of vacancies | High Demand |
Frequently Asked Questions (FAQs)
Q1: What is Steven Pan’s proposal to Taiwan’s government?
A1: Steven Pan has suggested that Taiwan should ease the work restrictions for foreign students and interns, especially in the tourism sector, to help address the current labor shortage.
Q2: Why is there a labor shortage in Taiwan?
A2: According to Taiwan’s Ministry of Labor, the labor shortage is particularly severe in the service sector, including tourism, where a large number of job vacancies remain unfilled.
Q3: What are the current work regulations for foreign students in Taiwan?
A3: Foreign students at Taiwanese universities can work up to 20 hours per week during the semester and full-time during holidays. However, short-term language students cannot work.
Q4: How did Japan address similar labor issues?
A4: Japan implemented policies allowing foreign students and interns to work for up to five years, which helped alleviate labor shortages in the tourism industry and contributed to the country’s economic growth.
Q5: What are the benefits of easing work restrictions for foreign students?
A5: Easing restrictions could help fill labor gaps in Taiwan’s tourism industry, support economic growth, and make the country more attractive to international talent.
