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The impact of foreign direct investment from Taiwan on tourism development in Kyushu

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  • KO, Yu-Ting

Abstract

This study aims to explore the impact of foreign direct investment (FDI) from Taiwan in the Kyushu region, particularly focusing on the establishment of facilities in Kumamoto by Taiwan Semiconductor Manufacturing Company (TSMC), on the development of airport infrastructure and its subsequent influence on the growth of regional tourism. The research focuses on Taiwanese visitors to Kyushu, encompassing both business and leisure travelers, with particular attention to changes in the number of flights between Taiwan and Kyushu, as well as fluctuations in visitor numbers to various prefectures within Kyushu as travel destinations. By analyzing flight data and tourism statistics, the study finds that FDI from TSMC has driven an increase in the number of scheduled flights at Kumamoto and surrounding airports, leading to a rapid rise in Taiwanese visitors to Kyushu. Moreover, the travel destinations of these visitors have expanded from a previous concentration in Fukuoka to include Kumamoto, Oita, and other prefectures. The findings indicate that industrial investment significantly stimulates regional transportation and tourism sectors, contributing to a deeper understanding of the interplay between industrial development and tourism economy.

Suggested Citation

  • KO, Yu-Ting, 2025. "The impact of foreign direct investment from Taiwan on tourism development in Kyushu," AGI Working Paper Series 2025-17, Asian Growth Research Institute.
    • Handle: RePEc:agi:wpaper:02000251
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    File URL: https://agi.repo.nii.ac.jp/records/2000251
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    File URL: https://agi.repo.nii.ac.jp/record/2000251/files/WP2025-17.pdf
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    1. Faisal, Faisal & Rahman, Sami Ur & Chander, Rajnesh & Ali, Adnan & Ramakrishnan, Suresh & Ozatac, Nesrin & Ullah, Mr Noor & Tursoy, Turgut, 2021. "Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: Empirical evidence from the novel fourier ARDL and hidden cointegration," Resources Policy, Elsevier, vol. 74(C).
    2. Wu, Chuntao, 2016. "How aviation deregulation promotes international tourism in Northeast Asia: A case of the charter market in Japan," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 260-271.
    3. Sasidaran Gopalan & Usman Khalid & Luke Okafor, 2024. "Do greenfield FDI inflows promote international tourism?," Current Issues in Tourism, Taylor & Francis Journals, vol. 27(24), pages 4561-4578, December.
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