Kenting Guesthouse Faces Hefty Fines for Shocking Price Gouging During Festival Season

Taiwan's authorities crack down on excessive price hikes at a Kenting guesthouse, highlighting the importance of fair practices for tourists.

Taipei, March 30 – A guesthouse in the vibrant Kenting National Park, located in southern Taiwan, is facing significant penalties for flagrant violations of price control regulations. Following an official investigation, authorities uncovered an alarming practice: the guesthouse had inflated its room rates by a staggering 900 percent for dates coinciding with two major festivals in early April.

The discovery was made during a joint inspection conducted on Saturday by the Pingtung County Bureau of Transportation and Tourism Development and the Hengchun Police Bureau. The inspection revealed not only egregious price gouging but also the operation of more rooms than legally permitted. Investigators found 15 rooms in use, far exceeding the registered limit of nine.

The Pingtung County Bureau confirmed on Sunday that the guesthouse is subject to fines ranging from NT$10,000 to NT$50,000 for the price gouging offenses. Furthermore, it will be fined NT$40,000 for operating beyond its authorized capacity. These penalties are based on the stipulations outlined in the Act for the Development of Tourism.

The investigation was prompted by the local government's earlier discovery, last Thursday, of the guesthouse's exorbitant pricing strategy. Room rates, typically NT$895 (US$26.94), were dramatically inflated to an astounding NT$7,980 per night, far surpassing the permissible limits for price increases.

The guesthouse has been ordered to cease operations and has been fined, as mandated by the Act, according to the Pingtung County government.

The bureau has pledged to continue conducting regular inspections, with the goal of upholding price controls and ensuring consumer protection. It has also issued a call to all guesthouse operators, urging them to maintain transparent and fair pricing practices while providing high-quality services for all visitors.

The timing of these violations coincides with the Taiwan Music Festival, formerly known as the Spring Scream, which is scheduled to take place in Kenting from April 3-5. This event overlaps with the national four-day holiday, April 3-6, for the Tomb-Sweeping Festival.