With 6 million Chinese tourists expected to travel abroad over the Lunar New Year break, China's Jan. 27 to Feb. 2 holiday is crucial for Taiwan tour agency operator Li Chi-yueh, who relies on mainland visitors for a third of his revenue.

But Li's hopes are not high this year, after the number of mainland tourists plummeted 36 percent since President Tsai Ing-wen took power in May. Though Tsai says Taiwan wants peace with China, Beijing suspects she seeks formal independence.

"China uses its sightseeing tourists as a diplomatic weapon," said Li, owner of Taipei-based Chung Shin Travel Service, who has been representing Taiwan's tour operators to lobby Tsai to improve ties with Beijing. "There's a lot of concern that the industry won't survive if we carry on like this."