The Tourist guild strikes again on the Beautiful Island:

According to the Tourism Bureau, it will not strictly enforce the hotel requirement in the beginning. If a travel agency schedules its clients to stay in star-rate hotel, however, this will help with the passing of the trip in the review process.

Are they not merciful...The Organization of Large Hospitality Operators has successfully used it's political and economic clout to create an effective monopoly on the Chinese tourist market. In order to receive a star rating, hoteliers are required to pay a fee to the requisite quasi governmental agency.

Right now there is a middle class Chinese couple in Shanghai looking at a family vacation. The new rules for Chinese tourists has made Taiwan an option for them to visit but increasing the cost of their stay will inevitably push some people to The Philippines, Vietnam or Hainan who will gladly let them stay wherever they want.