Taitung Miramar Resort

Taitung Miramar Resort is a BOT (Build Operate Transfer) development on Shanyuan (杉原灣)/Fudafudak, an idyllic beach in Taitung (Taidong) County, south-east Taiwan. [1] In 2004, a contract was signed by Miramar Resort Taitung Ltd (majority owned by Huang Chun-fa, 黃春發 ) and the Taitung County Government under then County Commissioner Hsu Ching-yuan (徐慶元). It was supported by three subsequently elected Commissioners. The deal became mired in controversy as Miramar evolved into a landmark case in Taiwan’s environmental, indigenous, and legal history. [2]

Taitung Miramar Resort on Shanyuan-Fudafudak Beach, 2016

BOT Approval

In 2003, the Taitung County Government received Central Government permission to employ the BOT (Build-Operate-Transfer) model to demolish the change room and camping facilities at Shanyuan/Fudafudak and build a ‘theme restaurant’ and new change-room facilities in conjunction with a private partner. [3] This was unusual as BOT schemes are generally reserved for major infrastructure projects such as subway systems and toll-ways. [4] At the time, Hsu Ching-yuan was three years into his first term as County Commissioner/Governor while Justin Huang was the newly elected Taitung representative in the Central Government Legislature.

According to a diary of events compiled by Liu Jhong-xi (also spelt: Liu Chiung-hsi, 劉炯錫), Professor of Natural Sciences at Taitung University, the development area was divided into:

1. Theme Restaurant. 2. Beach Area (for the change rooms). [5][6]

As it was deemed a minor development, it was classified as ‘General’ rather than ‘International Tourism’ which meant that the Taitung Government was granted control of the project. If ‘International Tourism’, the Central Government would have retained control. [7]

Subsequently, private companies were invited to tender for the rights to build and manage the project. [8]

Durban Developments

Durban Developments (Chinese: 德安開發) is a descendent company from Miramar Group (Chinese: 美麗華集團[9]). [10] According to a China Post article:

“Miramar Group consists of subdivisions owned by different members within the giant, extended Huang family” [11]

One of those members is Huang Chun-fa, who owns Durban Developments. Huang also owns the BOT Miramar Garden Taipei. Upon its opening, the China Post reported:

“The Miramar Garden Taipei's chairman is Huang Chun-fu, a second-generation business leader in the Huang clan, which controls the Miramar Group. The new hotel's investors are the owners of the old Miramar Hotel and Tze-hing 志信國際 (Tze Shin) Industries, another Miramar-controlled business specializing in oil products, petrol stations and transportation...Aside from plans to expand into Taitung and Taichung, the group is now considering Taiwan's giant neighbor.” [12]

In early 2004, Durban Developments [13] became involved in the Shanyuan/Fudafudak redevelopment bidding process. [14]

From this point, the land usage purpose entered an adjustment period. Although details of other bids were not made public (citation needed), Durban’s proposal included, in addition to the restaurant and change rooms, a 50-room hotel. [15] In July, 2004, The Taitung County Government announced the BOT project description had been adjusted to “seaside resort”, with a maximum of 80-rooms. [16] [17]

Two months later, Miramar/Durban Developments was chosen as the best applicant, whereupon Huang Chun-fa (and/or his representatives) obtained the right to negotiate the contract. A consortium called Miramar Resort Taitung Ltd (美麗灣度假村股份有限公司) was formed that included a 45% investment stake by Naruwan Hotel(娜魯灣飯店), owned by Lin Yen-huang (林炎煌). [18]

The Contract

In December 2004, County Commissioner, Hsu Ching-yuan, signed a contract awarding Miramar Resort Ltd the rights to manage Shanyuan/Fudafudak and build an 80 rooms resort on the site.[19] The building to land coverage ratio was 6.5% and the floor to land ratio was 19.8% (later altered to 19.69% and 48.54% respectively.) [20] According to the contract, Miramar was required to pay a royalty fee of NT$5 million (@ NT$100 000 per year, US$3125) for the management rights, as well as 2% of yearly earnings to the Taitung Government. Furthermore, ownership of the resort building as well as beach usage rights would be transferred back free of charge to the Taitung County Government after 50 years. [21]

In addition to management rights, the Taitung Government agreed to lease Shanyuan/Fudafudak to Miramar/Durban at the nominal rate of NT$30 000 per month in order to facilitate the profitability of the project. [22]

The purpose of BOT government/private projects is, according to the Ministry of Finance’s BOT guidelines, to “provide sustainable and quality public service for the public.” [23]

The Taitung Government would be the competent authority supervising the legality of the project. [24]

Taitung Coastline

Whereas the north, west, and south coastlines of Taiwan have seen “rapid growth and overexploitation... (which) have led to significant degradation of coastal environments” (Shih, 2016), [25] the south-east coast’s rugged mountain and sea beauty is the same geography that has made it the least accessible to big developers. According to Lonely Planet:

“Taitung County is … a fantastical landscape of towering cliffs, plunging gorges and extraordinary rock formations. Thanks to its remote location, this stunning strip of land was the last part of Taiwan to see mainland Chinese settlers in the late 19th century. To this day, indigenous culture remains strong and makes up a part of everyday life for everyone.” [26]

This status as the last stretch of undeveloped coastline, much of it "nationally-designated traditional territory of the Amis tribe" (Chen, 2015) [27] presented two sides of the coin. On one side indigenous land rights advocates and environmentalists see it as reason for conserving the region, while on the other side resort supporters see it as simply following precedent. ‘If everywhere else has done it, why should Taitung be held to a higher standard?’ [28]

Kenting to the south in Pingtung County, and Taitung’s Jhiben hot springs offer the most recent models of coastal resort development in Taiwan.

Indigenous Background

There are 16 officially recognised tribes of Taiwan. Classified as Austronesian peoples, their descendants inhabited the island about 5000 years before the arrival of the Han Chinese. [29] Although the percentage of indigenous in Taiwan today is only 2.35%, in Taitung County, it’s 35.7%. [30] In east coast villages outside Taitung city, the figure is around 50% or higher, mostly from the Amis tribe. [31]

Having experienced a period of cultural weakening, the mid-90’s saw the beginning of a resurgence amongst indigenous communities in Taitung. (Futuru 2010) [32]

The Fudafuduk/Shanyuan area is home to the Tse-tung (Erythrina) buluo (village), from the Amis tribe. The area is officially designated traditional Amis territory. (Chen 2015) [33]

Arguments For and Against

A large part of the debate pertained to the legality of Miramar, which subsequently played out in the courts, but there were also sociological and economic points of contention with both sides claiming they had the best interests of Taitung residents, as well as greater Taiwanese society, at heart. Diverse community groups formed, on both sides, to express these views. [34]

While opposition to Miramar began to grow, [35] a PR vacuum developed in the pro-resort camp. On the private ownership side of the partnership, Huang Chun-fa from Miramar Group, remained publicly silent, while Lin Yen-huang, the minority shareholder, withdrew his investment in 2007 due to concerns about the success of the project in light of aboriginal/environmental protest. [36]

On the political side, then-County Commissioner, Hsu Chin-yuan (徐慶元), left to live in Canada the year after signing the deal (citation needed), while the next Commissioner, Kuang Li-chen (鄺麗貞) , was the subject of impeachment proceedings relating to inappropriate overseas travel-budget spending, [37] and considered a puppet of her ex-husband, Wu Chun-li (吳俊立), who had been elected County Commissioner but was barred from taking office due to being found guilty of vote-buying. [38] [39]

Justin Huang

Although the above County Commissioners had fought for the BOT project, it was Justin Huang who emerged as Miramar’s most vocal and credible supporter. Son of a previous Taitung Commissioner and KMT powerbroker, Huang Ching-fong (黃鏡峰), Huang is a Masters graduate in International Business Management from Santa Clara University. Before entering politics in 1996, he had accrued 10 years experience working for private investment companies, including two in Taiwan at HwaShin Investments. [40] In the period of 2003-4, when the deal was negotiated and signed, Huang, as Taitung’s then representative to the Legislature, was able to monitor the progress of the Miramar project. [41]

In 2009 he was elected County Commissioner of Taitung. Running on a platform of anti-corruption and jobs through development, [42] he won both elections comfortably. According to a survey conducted by Vision Magazine, both Huang and fellow east coast County Commissioner, Fu Kun-chi (傅崑萁) of Hualien have consistently polled as Taiwan’s most popular “5-star” County Commissioners. [43]

Having been involved in Taitung politics since 1996, and with his family's involvement stretching back to the 1960's, [44], 2011 Huang observed:

"Taitung consistently ranks the bottom three in average income among Taiwan's counties." [45]

To improve that record, Huang argued Taitung people needed jobs. To create jobs, he vowed to reinvigorate the resort construction policies of his predecessors (such as those in Jhiben Hot Spring), but with the added ingredient of “incorrupt, professional County Government”. [46]

In order to speed up implementation, the Huang Government would introduce laws to cut through the red tape of “lazy bureaucrats”: [47]

“Taitung is the first and only county to have introduced the Taitung Autonomous Land Management Regulations which aim to protect the environment and develop local construction at the same time.” [48]

Through projects such as Miramar, “a vision of beautiful tourist spots and a prosperous economy” was forecast. [49]

The Economy

Given one of Taitung’s most valuable resources is its world-class natural beauty, [50] Huang argued the best way to achieve prosperity was through the promotion of tourism, “the backbone of the economy”. [51]

On this point, protestors and resort supporters are in broad agreement, though opinions diverge on how best to develop the sector. Whereas protesters point to small business ecotourism models which they claim “amount to multi-billion dollar industries in in Australia, Europe, and the Americas”, [52] Huang uses the same places to support his vision of enhanced growth through consolidated resort development:

“Every coastline in the world is building or have already built countryside seashore resorts, Dubai, Bali, Kenting... why not the Taitung Government?” [53]

For purposes of research and promotion, Huang undertook 43 visits to overseas countries during his two terms as County Commissioner. [54] From these journeys he concluded:

“Advanced cultural countries have an advanced sense of environmental protection, but they also love countryside seashore resorts very much.” [55]

Huang also made 18 trips to China during his two terms as County Commissioner[56] to liaise with Tourism and Trade counterparts. He promised to “let tour buses travel freely”. [57] believing big development projects were essential to the survival of Taitung:

"How can Taitung people survive without developing? You don’t want Taitung to be developed? Sure! Please have the government make a budget to feed Taitung people just like how America protects it’s indigenous people!" [58]

Meanwhile, protesters challenge the core argument that resorts and tourbus tourism are ‘good for the local economy’, pointing to studies that report:

“In most all-inclusive package tours, more than 80% of travelers’ fees go to the airlines, hotels and other international companies, not to local businesspeople and workers”, [59]

Environmentalist and small business advocate, Michael O’Neill, argues that, by comparison:

“Independent travelers patronize local accommodation, restaurants, buy local produce, and listen to local musicians at local bars. Their money filters through the community, creating genuine economic development. For small business owners, it’s not some vague 'trickle-down' thing, it's the kind they can feel in their hand.” [60]

References

  1. ↑ Taipei Times, Academics urge ministry control in Miramar dispute, 2012
  2. ↑ Taipei Times, Miramar Resort, Tourism Gone Wrong, 2016
  3. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  4. ↑ BOT description, Wikipedia
  5. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  6. ↑ "刺桐部落格: [部落觀點] 杉原海水浴場BOT案". 刺桐部落格. 2011-08-18. Retrieved 2018-10-13.
  7. ↑ Demolish illegal resort: activists. Taipei Times, Thomas Chan(Environmental protection lawyer), 2012-06-02
  8. ↑ Miramar Resort Timeline. Taitung Environmental Protection Union. Prof Liu, 劉炯錫 (2009)
  9. ↑ "Miramar Group". www.miramar-group.com. Retrieved 2018-10-13.
  10. ↑ China Post, 2006, Miramar Group's Garden Taipei hotel to open
  11. ↑ China Post, 2015
  12. ↑ China Post, 2006: Miramar Group's Garden Taipei hotel to open
  13. ↑ Bloomberg, Durban Developments
  14. ↑ Taipei Times, 2012
  15. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  16. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  17. ↑ Taiwan News, 2012, Taitung Government loses lawsuit on beach resort project
  18. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  19. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  20. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  21. ↑ Timothy Chen, Imaginative Geographies and State Reliance: Examining Taiwan's Shanyuan Bay and Miramar Resort, 2015, P23-24
  22. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  23. ↑ Ministry of Finance, Promotion of Private Participation in Infrastructure Projects
  24. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  25. ↑ Yi-Che Shih, 2016
  26. ↑ Lonely Planet, Taitung
  27. ↑ Timothy Chen, Imaginative Geographies, 2015, p1
  28. ↑ ET Today
  29. ↑ Wikipedia: Taiwanese Indigenous peoples
  30. ↑ Taiwan Government, demographics
  31. ↑ Taiwan Government spreadsheet, by district
  32. ↑ Futuru, Playing Modernity, 2010, p68
  33. ↑ Timothy Chen, Imaginative Geographies, 2015, p24
  34. ↑ Timothy Chen, Imaginative Geographies and State Reliance, 2015
  35. ↑ Taiwan News, 2012: Amis aboriginals rebuild 'taluan' to protest Miramar Resort
  36. ↑ Prof Liu, 劉炯錫, Taitung University, Miramar Timeline
  37. ↑ Taipei Times, 2009: Control Yuan impeaches Huang, Chou
  38. ↑ Taipei Times, 2008, Taitung’s Kuang: she did it all for love
  39. ↑ Taipei Times, 2006, Corrupt Commissioners ex-wife wins Taitung vote
  40. ↑ Justin Huang, Dare to be Different, 2013, p36
  41. ↑ Wikipedia, Justin Huang
  42. ↑ Justin Huang, Governor's Column
  43. ↑ Vision Magazine Polls
  44. ↑ [List of County Magistrates of Taitung]
  45. ↑ Focus Taiwan, 2011: As resort opening nears, protesters ponder strategy
  46. ↑ Justin Huang, Governor's Column
  47. ↑ Justin Huang, Governor's Column
  48. ↑ Dare to be different - Justin Huang, P176
  49. ↑ Justin Huang, Governor's Column
  50. ↑ Lonely Planet
  51. ↑ Justin Huang, Governor's Column
  52. ↑ Michael O’Neill, Ocean Embrace, Vol. 3, 2012
  53. ↑ ET Today, 2012, Taitung Commissioner's Miramar controversy plea: "Let Taitungese eat just one mouthful of food"
  54. ↑ Taiwan Government travel register
  55. ↑ Justin Huang: Dare to be Different, 2013
  56. ↑ Taiwan Government travel register
  57. ↑ Justin Huang, Governor's Column
  58. ↑ "Taitung Commissioner Justin Huang: How does Taitung survive without development?".
  59. ↑ Nayomi, Gnanapla, 2015: Socio-Economic Impacts on Local Community through Tourism DevelopmentP2
  60. ↑ Michael O’Neill, Ocean Embrace, Vol. 3, 2012
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