Research on the Foreign Direct Investment Factors of Japanese Hotel Industry in Taiwan-Taking Okura Hotel as an Example

Abstract

Due to the impact of COVID-19 in 2019, the global hotel industry has been severely impacted by the disconnection of the tourism industry. However, even with the impact of the epidemic, the Japanese hotel industry’s investment in Taiwan has not stopped. What are the factors that drive the Japanese hotel industry to defy the threat of the epidemic and choose Taiwan as its destination for foreign direct investment? This is the research goal of this article. This article intends to adopt Push-Pull-Mooring (PPM)migration theory to construct the possible factors of why the Japanese hotel industry chooses Taiwan as its foreign direct investment destination. These factors consist of three effects to describe Japan Okura hotel’s migration. First, the push effect refers to factors that induce people to leave their place of origin. Second, the pull effect refers to factors that attract people to a destination. Third, the mooring effect refers to intervention variables for push and pull effects that facilitate or inhibit the determination of movement. The finding is that push and pull factors still play an active role in promoting Okura Hotel’s investment in Taiwan, even if the influence of some factors is slightly reduced due to the shift in international conditions. With the development of globalization and high technology, mooring factors are no longer the reason that hinders Japanese Okura’s investment in Taiwan. Combined with push and pull factors, PPM migration model can fully explain why the Japanese hotel industry chooses to conduct foreign direct investment in Taiwan, even if it is affected by COVID-19.It’s just that COVID-19 has not stopped so far, and the unstable situation on both sides of the strait may impact the original PPM model and affect the results of the analysis. It is worth further observation and research by subsequent researchers.