On July 4, over 753 tourists arrived on nine flights for a historical trip from China to Taiwan in fulfillment of President Ma's general policy of rapprochement with the mainland. It is the first direct contact for people on both sides in over six decades. These tourists bring mutual understanding, but also new challenges -- cultural conflicts, economic vulnerability -- as Taiwan's citizens grow accustomed to their cross-strait compatriots.

"From today onward, regular commercial flights will replace the rumbling warplanes over the skies of the Taiwan Strait, and relations between the two sides will become better and better," said Liu Shaoyong, chairman of China Southern Airlines.

The carefully orchestrated first set of mainland tours to Taiwan was pulled off virtually without a hitch, except for a few stray tourists. Months of preparation went into the planning for this new exchange, with Chinese tourism officials visiting potential sites beforehand and a few sites deemed off limits, such as the Democracy Hall (formerly CKS Memorial Hall) and Presidential Office -- to mainlanders, can a de jure province have a "president?"

Taiwan's tourism industry has been in desperate need of a boost. Those who can make it from China to visit the island live much above the average means and, like tourists in general, they are here to shop.

The first mainland tourists made a big splash in Taiwan's shopping scene, spending NT$40 million (US$1.3 million). A local Chinese-language newspaper says that this is a "conservative" estimate. It averages out to roughly NT$52,000 spent per person for this one trip. With this kind of buying power, no wonder President Ma urged locals to not be overly patronizing to the mainlanders.

A former president of the American Chamber of Commerce in Taiwan argued that Taiwan would follow the classical path of economic development as post-technology manufacturing moves toward the service industry. The U.S., Japan, and most developed countries serve as historical precedents. Receiving tourists from the mainland who are here to spend money in the service sector -- hotels, tours, shopping -- is a tangible manifestation of Taiwan's transition toward the service industry.

However, direct interaction with mainlanders will both dispel some prejudices and create new ones in the hearts of the Taiwanese. First hand experience with these tourists will teach Taiwanese that the visiting Chinese are far different from the "enemies" that their Kuomintang forefathers fought two generations ago. It will also reveal a people from a country that has been slower to modernize, with possible habits to match -- public spitting, loud banter, disregard for personal space.

The cultural risks of receiving guests from across the strait include daily friction between the two groups, and the government's big fear -- direct political protest aimed at the tourists (Falun Gong, pro-Tibet).

Whether or not Taiwan's interests would be better served through a policy of cooperation, rather than isolation from the mainland, is more of a philosophical question. If Taiwan isolates itself, it will continue to limit itself from the benefits of doing business in China. If Taiwan engages, Taiwan's assets and know-how becomes increasingly vulnerable. China, with its vast diplomatic and economic clout vis-a-vis Taiwan, has the upper hand in any scenario.

We can be sure that deepened cross-strait engagement will bring forth both new economic benefits, as well as political challenges as President-elect Ma takes his turn at formulating policy toward the mainland.