The cross-strait travel fair kicked off on Friday, with over 1,000 booths providing a platform for the public to fulfill their travel needs all under one roof. Both travel agents in Taiwan and China are showcasing an extensive array of products, services and of course, great bargains.

More than 700,000 Chinese tourists have visited Taiwan so far this year, but Chinese travel agencies often slash prices when demand is high, and there is therefore very little profit for domestic agencies in bringing Chinese tour groups to Taiwan.

As a result, the domestic tourism industry is hoping that new free travel policies will expand the market and bring in new revenue streams.

The cross-strait tourism industry is extremely competitive and airlines are operating at full capacity.

According to one Shanghai-based travel agency, the number of Taiwan tourists to Shanghai has increased by 40% over the past two months due to the World Expo, and flights are difficult to book.

Through July, the number of Taiwanese tourists to Shanghai has increased by 58% from the same period last year.

Meanwhile, a record 1.5 million Chinese tourists are expected to visit Taiwan this year.

The Civil Aeronautics Administration is negotiating with its Chinese counterpart on cross-strait flight issues, and hopes that new flights can begin flying by the end of the month.