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Taiwan has always been a popular refuge from mainland China. Over the centuries, everyone from fortune hunters and farmers to persecuted minorities and exiled members of the royal court has found a haven there. So when Nationalists fled the Communist takeover of the mainland in 1949, taking with them the imperial collection of Chinese artifacts, Taiwan welcomed this mass exodus of 1.5 million Chinese and became known as Taiwan, Republic of China, under the leadership of Nationalist General Chiang Kai-shek, who became the first president.

Although time has stood still in certain corners of Taiwan, most tourists concentrate their time in the capital, Taipei, known for its modern problems such as congested traffic and pollution as well as its cultural offerings and lively nightlife. You can croon in a karaoke bar or shop for just about anything at its bustling night markets.

Although we don't recommend bypassing the mainland in favor of this small, compact island, we do think Taiwan deserves a place on your itinerary if you're touring other countries in the region. Its highly industrialized capital may also bring you there for business, in which case it's worth taking in the beautiful landscapes, rugged mountains and ancient temples—many within a day's journey of Taipei.

The modern and the old haven't exactly blended in Taiwan—they coexist. There are days when you'll feel you're very much in a developing country: You can't drink the tap water, the cities are somewhat dirty, and anarchy reigns in the traffic lanes. But there are also hotels in Taipei that can match any in the world for elegance, service and comfort, and business travelers will find a modern communication system that's capable of handling their needs without much fuss.

Geography

History

The country has three names—Taiwan, Formosa and the Republic of China—which is itself a good clue to its history. Migration from mainland China began around the 15th century, and its traditional Chinese name—Taiwan, which means "terraced bay"—dates from that period. Portuguese traders who first sited Taiwan in the 17th century dubbed it Ilha Formosa (Beautiful Island), and the Nationalist leaders who fled there in 1949 proclaimed it to be the true seat of government for the Republic of China. (Before 1949, Taiwan had been an integral part of China; the mainland Chinese still consider it to be so.)

The Chinese on Taiwan see themselves as the true caretakers of China's 5,000-year history, and their well-maintained museums and shrines make a good case. The Buddhist temples there are typically better preserved than those on the mainland, because they escaped the ravages of China's Cultural Revolution.

As one of the Asian Tigers—the newly industrialized lands where the standards of living rose quickly through the 1980s—Taiwan enjoyed a boom in fancy restaurants, glittering discos and consumer goods. However, it was also vulnerable to the crash experienced by many Asian economies in the late 1990s. Thankfully, Taiwan's conservative banking system and more flexible, open economy allowed it to weather the storm with considerably less turmoil than its neighbors.

In 2000, after five decades of rule by the Kuomintang, the Democratic Progressive Party rose to power when Chen Shui-bian was elected president of Taiwan. Chen Shui-bian is a strong advocate of democracy, even spending time in jail before political parties were legalized. He has also advocated independence, although he has toned down his rhetoric since taking office. In March 2004, Chen Shui-bian won his second term of office by a narrow margin, much to the dismay and disbelief of both the Kuomintang and the mainland government.

When Chen scrapped the National Unification Council in 2006, many China-watchers took this as a distinct step toward formally declaring independence. Today Taiwan is politically divided between those who advocate reunification and those who march for independence.

Meanwhile, the government of mainland China still regards Taiwan as a renegade province and works hard to isolate Taiwan from the international scene. Hence, Taiwan is not represented in organizations such as the United Nations or World Health Organization. What's more, mainland China has threatened to invade Taiwan should any effort be made toward independence. Certainly the tensions between China and Taiwan seem set to continue for at least as long as Chen remains in power.

Snapshot

Among the chief attractions of Taiwan are temples and shrines, art treasures, shopping, peaceful lakes, spectacular scenery, bird-watching, hiking, beaches, food, deep-sea fishing, gardens, scuba diving and snorkeling and, of course, the incredibly warm and friendly people.

Taiwan should be seen on a tour that includes other East Asian destinations: Japan, Korea or parts of Southeast Asia such as Thailand—or even mainland China itself for an interesting cultural comparison. Taiwan's beaches and watersports are not spectacular enough to be the primary reason for going, but its hot springs and cuisine will not disappoint.

Potpourri

At 1,671 ft/518 m tall, the Taipei 101 building was intended to be higher until planners realized it was close to the flight path of the domestic airport. The building is also situated on an earthquake fault line and so boasts the world's largest counterbalance. Perhaps most exciting for visitors, Taipei 101's elevators take riders to the observatory on the 89th floor in less than 39 seconds.

The National Palace Collection in Taipei contains more than 650,000 artifacts. Expanded galleries display more of this unparalled collection of ancient Chinese treasures than ever before, and exhibits are rotated every three months. At that rate, it takes 40 years for the entire collection to be displayed. Guided tours in English are available and recommended.

Scattered around Taipei are temples and Paifangs (memorials) to important people in the history of Taiwan. The temples offer a respite from the busy streets and a chance to glimpse the timelessness of Taiwan's Buddhist traditions.

Xiexie ni, which sounds like "shay-shay-knee," means "Thank you." Use it often and you'll be well-received. Ni hao ma is the common greeting, meaning "How are you?" These two Mandarin phrases will be useful throughout Taiwan, although you may also come across locals speaking Taiwanese, an indigenous language still spoken by the older generation.

Young travelers looking for nightlife should check out the beer houses. They're places for rollicking fun, beer and great food at a reasonable price. Lavishly—even outlandishly—decorated, the houses often have a theme, such as Native Americans or dinosaurs. These places are especially good if you want to try exotic foods such as deep-fried beetles. Actually, no one really eats them in Taiwan anymore, but it is fun watching people try and the resultant facial expressions. Meanwhile, travelers on an expense account and those seeking a more sophisticated ambience have plenty of elegant bars and lounges around Taipei to choose from.

Politically, both Beijing and Taipei demand that nations recognize one government but not the other. Taiwan lost its China seat at the United Nations in 1971, and eight years later the U.S. withdrew its recognition of the Republic in favor of the People's Republic of China. Today, few countries have official diplomatic relations with Taiwan. Instead, the U.S. is represented in Taiwan by the American Institute and the U.S. Chamber of Commerce. In the U.S., Taiwan is represented by the Taipei Economic and Cultural Representative Office, which has offices in major cities.

Taiwan cities are densely populated, particularly in certain situations such as the night markets. We recommend avoiding the National Palace Museum and Yang Ming Shan on Saturday afternoons and Sundays when local families congregate in mind-boggling numbers.

It gets quite chilly in winter, and this is when the hot springs come into their own. These geothermal wonders produce a continuous supply of hot water, and these springs are taken advantage of all over the island, although they are concentrated along the eastern side of the island from the outskirts of Taipei to Taitung. You can choose an open public pool, a natural pool, a hotel room with your own personal supply of water, or single-sex pools. A word of warning: At these pools, you will be required to wash thoroughly before entering the pool, and then you are expected to be naked.

One of Taiwan's more interesting festivals takes place during the entire lunar month of July, when the island is allegedly inhabited by thousands of ghosts. The Ghost Festival occurs on the 15th of the lunar month to placate these marauding spirits. Storefronts and homes display tables laden with food and offerings, such as fake money and clothing to be burned in small baskets (strong smells waft through the city streets). In Keelung, a large parade winds around for miles, and at midnight, floating lanterns are set to sea to dispel the spirits.