Making Korea a tourist powerhouse

The incentive tour group of 120,000 employees of the China-based Baojien Group will visit Koreas Jeju Island this month. The attraction of the largest foreign tourist group in Korea’s tourism history, which is expected to generate 40 billion won (36 million U.S. dollars) in revenue, is the outcome of cooperation among Koreas private and public sectors and central and municipal governments. Jeju Gov. Woo Keun-min promoted his island’s tourism industry by visiting Baojien headquarters in China twice. The Korean Culture, Sports and Tourism Ministry and the Korea Tourism Organization also stepped forward. The Korean Embassy in Beijing issued visas en masse for the tourist group.

The tourism industry creates huge added value and jobs and boosts Koreas global profile. Last year, the number of foreign tourists in Korea exceeded a record eight million. The government has set the goal of 10 million foreign tourists next year but this target will likely be met this year. Korea is equipped with world-class technologies in manufacturing such as shipbuilding, semiconductors and cars, but the prospect for its economy is not all rosy. Korea, however, can find a breakthrough for its export and manufacturing-oriented economy by nurturing its tourism industry. In tourism, the value-added inducement coefficient is 0.64 and the employment inducement coefficient is 15.5, higher than corresponding figures for the manufacturing industry (0.56 and 9.2, respectively).

No less important than attracting a large number of tourists is enhancing the quality of the Korean tourism industry. A paradigm shift from “visual tourism” to “participatory tourism” is needed. Notably, the government should promote the MICE industry, or meetings, incentive travel, conventions and exhibitions. MICE generates so many economic benefits that it is called “the flower of the industry.” MICE tourists have deep pockets as the organizations they belong to finance lodging costs and airfare. The Chinese incentive tour group that Jeju has attracted is a case in point. Foreign tourists who want to undergo cosmetic surgery have high interest in Korea’s medical tourism as well.

The contribution of Korea’s tourism industry to GDP is 5.4 percent, lower than the rates of Malaysia (16 percent), Thailand (15.7 percent), Hong Kong (12.8 percent), France (9.5 percent) and Japan (6.8 percent). On the flip side, this means Korea’s tourism industry has ample room for growth. If Korea nurtures tangible and intangible tourist infrastructure by expanding accommodation and convenience facilities, develop diverse tourism packages, and ease regulations or apply them in a flexible manner, the country can emerge as a tourist powerhouse.

Source - donga