Bold investment, deregulation needed to keep travel industry afloat
The government unveiled measures aimed at stimulating domestic tourism and spurring deregulation at a meeting chaired by Prime Minister Chung Sye-kyun, Tuesday. The package is intended to reinvigorate the ailing tourism industry amid the coronavirus pandemic.
The measures include handing out one million accommodation coupons offering up to 40,000 won ($32) discounts, and providing 150,000 people prepaying for travel packages with a 30 percent discount. As part of deregulation efforts, the government will ease red tape on camping. and lower the capital requirement for establishing a travel agency from 100 million won to 50 million won. The government expects these measures to trigger 4.6 trillion won in tourism spending.
The travel industry has taken a big hit from the COVID-19 outbreak. South Korea “welcomed” a mere 29,425 international travelers in April, down 98.2 percent year-on-year from 1.63 million in 2019. Foreigners have almost disappeared from tourist attractions in Seoul and on Jeju Island. Far fewer Koreans have also taken trips as social distancing has become routine, leaving businesses in the tourism sector struggling.
As things stand, the travel industry has no choice but to rely on domestic tourism until the global coronavirus crisis ends. Fortunately, the country has been doing relatively well in responding to the pandemic, creating conditions for people to go sightseeing without concern.
Considering that more than 28 million Koreans traveled abroad last year, the key to keeping the tourism industry afloat is how to encourage people to consider traveling domestically. This requires the government and the tourism industry to make serious efforts to satisfy Koreans by suggesting better things to see and do.
It is therefore imperative to upgrade the quality of domestic tourism through bold investment, deregulation and infrastructure improvements. In the wake of the pandemic, opportunity could be found to reinvent the tourism sector.