Taitung Miramar Resort () is a BOT (Build Operate Transfer) development on Shanyuan (杉原灣)/Fudafudak in Beinan Township, Taitung County, Taiwan.Taipei Times, Academics urge ministry control in Miramar dispute, 2012 In 2004, a contract was signed by Miramar Resort Taitung Ltd (majority owned by Huang Chun-fa) and the Taitung County Government under then County Magistrate Hsu Ching-yuan. It was supported by three subsequently elected magistrates. Although still standing, Miramar was unable to open due to Supreme Court rulings relating to the legality of its construction.Taipei Times, Miramar Resort, Tourism Gone Wrong, 2016
BOT approval
In 2003, the Taitung County Government received Central Government permission to employ the BOT 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. This was unusual as BOT schemes are generally reserved for major infrastructure projects such as subway systems and toll roads. At the time, Hsu Ching-yuan was three years into his first term as County Magistrate while Justin Huang was the newly elected Taitung representative in the Central Government Legislature.
The development area was divided into the theme restaurant and beach area.
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.Demolish illegal resort: activists. Taipei Times, Thomas Chan(Environmental protection lawyer), 2012-06-02 Subsequently, private companies were invited to tender for the rights to build and manage the project.
Durban Development
Durban Development Company Ltd. () is a descendant company from Miramar Group (),China Post, 2006, Miramar Group's Garden Taipei hotel to open which, according to the China Post, "consists of subdivisions owned by different members within the giant, extended Huang family”
In early 2004, Durban Development CompanyBloomberg, Durban Developments became involved in the Shanyuan/Fudafudak redevelopment bidding process.Taipei Times, 2012 From this point, the land usage purpose entered an adjustment period. Durban's proposal included, in addition to the restaurant and change rooms, a 50-room hotel. In July 2004, the Taitung County Government announced the project description had been adjusted to “seaside resort”, with a maximum of 80-rooms.Taiwan News, 2012, Taitung Government loses lawsuit on beach resort project
Two months later, Miramar/Durban was chosen as the best applicant (it is unclear if there were other tenders), 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).
The contract
In December 2004, Magistrate Hsu Ching-yuan signed a contract with Miramar Resort Ltd for the rights to manage Shanyuan/Fudafudak and build an 80-room resort. The building to land coverage ratio was 6.5% and the floor to land ratio was 19.8%. 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, the resort building as well as beach usage rights would be transferred back free of charge to the county government after 50 years.Timothy Chen, Imaginative Geographies and State Reliance: Examining Taiwan's Shanyuan Bay and Miramar Resort, 2015, P23-24
In addition to management rights, the Taitung Government agreed to lease Shanyuan/Fudafudak to Miramar/Durban at the nominal rate of NT$30 000 (US$938) per month in order to facilitate the profitability of the project. According to the Ministry of Finance's BOT guidelines, Miramar was required to “provide sustainable and quality public service.”Ministry of Finance, Promotion of Private Participation in Infrastructure Projects The Taitung Government would be the competent authority supervising the legality of the project.
Construction began on March 28, 2005.United News, Luo Shao-ping, Chen Jia-xin, 2007
Taitung coastline
Whereas the northern, western, and southern coastlines of Taiwan have seen land development leading to degradation of the coastal environment, the southeast coast's rugged natural beauty also renders it the least accessible to large developers. According to Lonely Planet:
This status as the last stretch of undeveloped coastline, much of it "nationally designated traditional territory of the Amis tribe" (Chen, 2015)Timothy Chen, Imaginative Geographies, 2015, p1 presented two sides of the coin: both reason for conserving the area, and reason for development in that it is following precedent. As Deputy Speaker Chen noted: "If Kenting has been allowed to cover the beach with hotels, why can't we do it Taitung?"TEIA, Industry, government pleads: Taitung people need Miramar, Dec 8, 2012
Kenting to the south in Pingtung County, and Taitung's Zhiben Hot Spring offer the most recent models of coastal resort development in Taiwan.
Indigenous background
There are 16 officially recognized indigenous ethnic groups of Taiwan. Classified as Austronesian peoples, their descendants inhabited the island about 5000 years before the arrival of the Han Chinese. Although the percentage of indigenous in Taiwan today is only 2.35%, in Taitung County it is 35.7%.Taiwan Government, demographics In east coast villages outside Taitung city, the figure is around 50% or higher, mostly consisting of Amis tribe members.
Within the 16 indigenous ethnic groups, the buluo (indigenous village) functions as the central mechanism of indigenous culture. Before and during colonization, buluo formed and settled in particular geological areas suitable for habitation. (Chen 2015) Timothy Chen 2015, Imaginative geographies and state reliance: Examining Taiwan's Shanyuan bay and Miramar resort, p14 Having experienced an accumulating period of cultural weakening, the mid-1990s saw the beginning of a resurgence amongst indigenous communities in Taitung. (Futuru 2010)Futuru, Playing Modernity, 2010, p68
The Fudafuduk/Shanyuan area is inhabited by the Tse-tung (Erythrina) buluo from the Amis tribe. The annual Amis ocean worship festival, Palaylay (Ilisin, 海祭), is held on the beach during summer. The sheltered coral reef bay provides a food gathering resource, and serves as a training ground for youth in food identification, fishing, diving, and boating skills.Glenn Smith, Cultural Survival, Indigenous activists win legal battle against luxury resort, 2015 Significant archeological sites are located in the surrounding area dating back to the Neolithic period, approximately 2000–4000 years ago.
Shanyuan/Fudafudak is designated indigenous territory. According to Taiwan's Basic Aboriginal Law (2005), such areas require consultation with the traditional custodians before changes to land rezoning and/or usage can take place. (Chen 2015) Timothy Chen 2015, Imaginative geographies and state reliance: Examining Taiwan's Shanyuan bay and Miramar resort, p24
Huang Chun-fa, chairman of Taitung Miramar Resort
The beneficiary of any payout would be the Miramar/Durban Development companies owned by Huang Chun-fa, "...a second-generation business leader in the Huang clan, which controls the Miramar Group". Whereas other branches of the Miramar Huang family have led high-profile lives played out through the media, Business Today noted, "the style of the Huang Jung-hua (branch of) Huangs has always been low-key."
In 2004, Huang Chun-fa's companies were quietly awarded government hotel construction/management tenders in Taipei, Hsinchu and Taitung:
Two years later the China Post reported:
“Luckily for the group, they didn't need to purchase land...The Tourism Bureau decided to provide land to private investors using the build, operate transfer (BOT) model. After 50 years, these hotels are required to be returned to the government... The powerful Miramar Group - which controls a wide range of businesses ... from department stores to real estate to petrol stations - was famous for the old Miramar Hotel.”China Post: Miramar Group's Garden Taipei hotel to open, 2006
Old Miramar Hotel
The 15-story old Miramar Hotel opened in 1978 and was officially closed in July 2000. Huang Chun-fa, a then 21-year-old, worked on the original construction site as a supervisor under the guidance of his father and uncle. He later became responsible for running the hotel.Business Today, Miramar hotel says goodbye, 2000, p52, 七月三十一%E3%80%80美麗華飯店說再見p.52 The Huangs “established a precedent for cooperation with travel agencies” bringing the ‘all-inclusive’ travel model to Taiwan. With "a reputation of solely catering to tour groups",China Post, Miramar Groups Garden Hotel to open the old Miramar, at its peak, was highly profitable, and functioned as a ‘cash cow’ for other expansion enterprises, including the Linkou golf course in New Taipei City.
921 Earthquake
Described as a cornerstone business in “the foundation of the Huang Brothers' development”, a Business Today article noted that, “As a result of the 921 earthquake, business almost hit rock bottom.”Business Today, Miramar Hotel says goodbye, 2000
Rebuilding on old Miramar Site
Apart from the economic difficulties following the impact of 921, Business Today reported that in 2000, Huang Chun-fa's “(Durban) department store has accumulated losses for five years; last year NT$400 million ... and Daily Air has lost NT$500 million."
Durban Development successfully applied to rebuild a 12-story office block called Miramar Securities Financial Building (美麗華證券金融大樓). Before opening, Miramar Securities was on-sold to Gwo Hua Life Insurance (國華人壽), which was also facing financial difficulties.Liberty Times: Wong Yi-ming, Huang Chun-fa sued of $2 billion transfer of benefits, 2005 Huang then bought a controlling interest in Gwo Hua whereupon it was declared bankrupt.{ The Department of Finance authorized a rescue package of NT$83.868 billion (US$2.725 billion) to cover Gwo Hua's liabilities and merge with Trans Global Insurance (全球人壽)Government payouts to failed insurance companies, 2018 Yang Shi-ren, The Stockmarket is a Roiling Sea (股海翻騰：一個老記者的觀察 - 作者：楊士仁，巨流圖書) P. 270
In 2002, Huang Chun-fa and Wong Yi-ming, were charged with ‘Breach of Trust’ over the deal. Wong died during the proceedings, while Huang was acquitted.Court case report database, Report file: 2005年度重訴罪第24號, Verdict date: 2006/7/2
In 2004, Huang's enterprises experienced a boost when they swept a trifecta of government BOT tenders for hotel constructions in Taipei, Hsinchu, and Taitung.Timothy Chen, Imaginative Geographies and State Reliance: Examining Taiwan's Shanyuan Bay and Miramar Resort, 2015, P21Taiwan Today, Amis aboriginals rebuild ‘taluan’ to protest resort, 2012
Initial protest
Unlike the Miramar Taipei Gardens and Miramar Hsinchu, which were city blocks, Taitung Miramar Resort was built on a popular public/indigenous territory beach called Shanyuan/Fudafudak at a time of raised awareness in Taiwan regarding natural heritage and indigenous rights,Timothy Chen, Imaginative Geographies, 2015, p24 and coinciding with the advent of social media.