In response to the signs of declining demand for tourism to Korea due to the aftermath of the impeachment proceedings, the government has taken steps to revitalize the tourism market. It is pushing for a temporary visa-free policy for Chinese group tourists. To concentrate efforts on attracting tourists, mega-events such as the Korea Grand Sale have been scheduled for the first half of next year. Tax benefits that were previously applied to 'tourist areas' will also be extended to 'small-scale tourist complexes' next year, with the aim of stimulating tourism demand in areas with declining populations.
Acting President and Prime Minister Han Duck-soo presided over the 9th National Tourism Strategy Meeting at 10:30 a.m. on the 26th at the National Museum of Korea in Seoul, where he announced the 'Tourism Market Stabilization Measures' containing such initiatives.
According to the Korea Culture and Tourism Institute, the number of inbound tourists to Korea from January to October this year reached 13,717,000 people, recovering to 94.2% of the level before the COVID-19 pandemic. However, concerns are growing about the impact on the tourism market due to recent variables such as the martial law situation.
To support the recovery of the inbound tourism market, the government has decided to improve the convenience of entry and exit for tourists. In collaboration with the Ministry of Justice, it plans to extend the temporary exemption period for the Electronic Travel Authorization System (K-ETA), which was scheduled to end this year, until December next year. The electronic travel authorization system is a system that allows foreign nationals from 112 countries who can enter Korea without a visa to access the system's website or mobile application in advance, enter their personal information, and obtain travel authorization.
The government is also considering a pilot implementation of a visa-free policy for Chinese group tourists recruited through designated Korea-China travel agencies. The visa issuance fee exemption period for group tourists from six countries, including China, Vietnam, the Philippines, Indonesia, Cambodia, and India, will be extended until December next year. The pilot project for expedited entry screening, which was previously only available to major international conference participants, will continue until the first half of next year.
Additionally, the government plans to advance large-scale events to the first half of next year to regenerate demand for tourism to Korea. The Korea Grand Sale, a large-scale shopping culture tourism festival, is scheduled to be held in January-February next year. 'Beyond K Festa,' a large-scale comprehensive K-culture event, will be newly established and held in June next year, in conjunction with the Korea Beauty Festival, a comprehensive K-beauty experience event, scheduled for June-July.
The government is also promoting the revitalization of tourism in areas with declining populations. The 'small-scale tourist complex' system, which allows for the development of tourist complexes on a relatively smaller scale than existing tourist complexes, will be implemented in the first half of next year. It plans to attract private investment into small-scale tourist complexes by applying the same various fee reductions and tax benefits previously applied to existing tourist complexes.
The operation area for the 'digital tourism resident card,' which provides integrated benefits for lodging, experiences, and dining when visiting areas with declining populations, will be expanded from 34 this year to about 45 next year.
Furthermore, swift financial support will be promoted to ensure that the tourism industry does not face difficulties. From January next year, a 'three-type financial support package for specialized tourism enterprises' will provide general loans amounting to 536.5 billion won, interest support totaling 100 billion won, and loans backed by credit guarantees totaling 70 billion won. A special loan of 50 billion won for establishing a management safety net in the tourism industry will also be urgently provided.
Additionally, the government plans to improve the accommodation management system in collaboration with multiple ministries, so that 'city homestays,' which were previously allowed only for foreigners, can be permitted for locals as well. New business categories will be established with certain mandatory requirements for operators, along with consumer protection standards and collaboration plans with platform corporations.
Meanwhile, the National Tourism Strategy Meeting is a council formed under the Tourism Basic Law, comprising the Prime Minister as chair and 13 Ministers from various departments. About 60 people attended this meeting, including representatives from the tourism industry associations, experts, and private corporations.
A government official noted that in this meeting, a plan was discussed to support the rapid stabilization of the inbound tourism market and ensure that the benefits of market growth can spread throughout the region.