TAIPEI (Taiwan News) — Kaohsiung’s Pier-2 Art Center is coming under fire for raising stall fees for young entrepreneurs selling handicrafts and other goods, per UDN.

Founded in 2006, the early days of the Pier-2 Art Center were characterized by affordable daily stall fees for handicraft vendors, starting at NT$500 (US$15). But in recent years, prices have risen with the current “Cheers Pier-2 Party” over a four-day holiday charging as much as NT$4,500 per day for vendors selling food or alcohol.

Young entrepreneurs say that high rents make it impossible to make money. Vendors say such high fixed costs are scaring away cultural entrepreneurs, which the Pier-2 Art Center was intended to support.

Kaohsiung’s Cultural Affairs Bureau explained that higher marketing costs associated with special events such as the ongoing “Cheers Pier-2 Party” require higher stall fees. However, the higher vending fees have not necessarily translated into more business.

"The rent has increased, but we are finding that fewer people are spending money,” said a vendor surnamed Li (李). Li said stall fees this year for the Taiwan National Day holiday have increased from NT$2,000 to NT$2,500. Despite the increase, Li said business was down 20% when compared to last year, as the event suffered from poor design and circulation.

Another stall owner, surnamed Chen (陳), said that daily rent for a stall selling alcoholic beverages cost NT$4,500. High rental fees, together with the cost of goods and labor, have made operating a stall no longer profitable. Chen added that although there were more visitors over the long holiday, few had the spending power to sustain higher rents, which are now scaring away young entrepreneurs.

Kaohsiung City Councilor Huang Bo-lin (黃柏霖) said that lower stall rent should help support young people involved in cultural and creative industries. However, publicity and exhibition layout still require expenditures to attract a crowd. Huang recommended seeking out a win-win situation for vendors, consumers, and city government.

The Kaohsiung Cultural Affairs Bureau said Pier-2 Art Center markets are typically organized by contractors who are responsible for negotiating stall fees. For this reason, higher stall fees are assessed to recoup investment costs in venue decoration, program planning, and event marketing.