Taipei - Taiwan bicycle manufacturer Giant Inc plans to launch a travel agency to promote bike tourism , a newspaper reported Tuesday. Giant has applied to the Transport Ministry to operate a Class-A travel agency and hopes to launch the new venture in May, the Taipei Times quoted Giant general manager John Ho as saying.

Ho said the new travel agency was initially expected to bring in more than 100 million Taiwan dollars (nearly 3 million US) in annual revenue, but Giant's goal is not making money but to promote bike riding as a way of life.

Giant plans to sign an agreement with Taiwan's largest airline, the China Airlines, which will offer discount bicycle shipping services to capture new business opportunities.

Aside from teaming with China Airlines, Giant said it would continue to reinforce its collaboration with Lion Travel Service Co. Giant is now in charge of Lion Travel Service's bicycle tour programmes.

Giant is eying business opportunities brought by an increasing number of tourists who travel across the Taiwan Strait via a third destination and plans to offer two-day, one-night bike tours between Kinmen and Xiamen in the second half of 2009, the Taipei Times said.

Kinmen is a Taiwan-held islet a few kilometres off China's south- east coast.

Fueled by the growing popularity of cycling, Giant sold 390,000 bicycles last year in Taiwan, with about 4 billion Taiwan dollars (118 million US dollars) in sales.

The company's 2008 sales surged 140 per cent from 2007, when Giant sold 230,000 bicycles and reported sales of 1.65 billion Taiwan dollars (48 million US dollars).

According to the Taipei Times, Giant expects domestic sales to drop to about 350,000 units in 2009 due to the economic downturn. (dpa)