Korea Takes Aim at Top 10 Tourist Destination

By Kim Rahn
Staff Reporter

The Presidential Transition Committee is devising measures to boost the competitiveness of the country's tourism sector, with the aim of making Korea one of the top 10 countries for tourism by 2012.

The plan comes amid the awareness of the growing importance of tourism as a sustainable industry.

``The World Tourism Organization forecast tourism will take up 20 percent of the world's GDP in 2008. However, tourism accounts for 4 percent of GDP in Korea, while that in China is 10.5 percent and Japan, 8.9 percent. The ratio can reach 10 percent if regulations are relieved and effective policies are presented,'' Oh Jee-chul, president of the Korea Tourism Organization (KTO), said.

The new government, with a business-oriented point of view, is thus expected to emphasize removing or improving unreasonable regulations in tourism and on creating jobs in the business.

Unrealistic Visa System

China is a big market, with more Chinese people traveling, however, the visa system for them here has been complicated and does not reflect reality, along with disharmony between related authorities.

Last April, Korea adopted visa waiver program for Chinese students who were on school excursions ― instead, trip organizers had to obtain consular certificates from the Korean embassy there.

``However, it takes two weeks for the organizers to get the certificates, while Japan, which also allows Chinese students' non-visa entry, issues the certificates in a couple of days. Also, teachers who guide the students must undergo an interview at the embassy, while Japan does not require such a procedure. That's why Chinese school trip organizers prefer Japan to Korea,'' a KTO employee said on the condition of anonymity.

Also, unlike Korea where each school arranges its own school trip, such excursions in China are organized by nationwide youth organizations. ``Students from various regions take part in the trips. However, the Korean visa waiver program is applied to trips only organized by each school. Thus, no school trips can benefit from the visa waiver program and all Chinese students need to get visas issued. The system is good for nothing,'' he said.

There are six Korean consulates in China, which handle visa issuance. In the case of group tourists, they can get a group visa only when the hometowns of at least 80 percent of them belong to the consulate's jurisdiction. If the consulate covers the hometowns of only 70 percent of them, they have to get individual visas, he said.

``Companies in big cities, like Shanghai, want group tours as they provide incentive trips to their workers. But in many cases, they cannot get group visa because the workers' hometowns are varied, and the companies cancel the trip to Korea,'' the KTO employee said.

He said a task force will be formed in March to solve the problem and seek cooperation among related authorities ― the justice, foreign affairs and trade, and culture and tourism ministries, and the KTO.

He expected an eased visa rule to increase the number of Chinese visitors by 10 percent. In 2007, some 1 million Chinese came to Korea.

To remove the problems, the transition team announced that it would change the criteria of visa issuance for Chinese people, allow multiple visas to more people, and simplify the visa waiver process for school excursions.

It is also considering expanding the waiver program for public and business officials for a couple of months around the Beijing Olympic Games.

``Besides tourist attractions, we have a lot that China does not have yet. For example, we have a better medical system than China, and the chances are high that rich Chinese would visit Korea for medical treatment if they can come with a less complicated visa procedure,'' said a KTO director who refused to be named.

Regulations Keep Hotel Rates High

Hotels are usually blamed for high travel costs in Korea due to high rates. But they say it is difficult for them to cut these as they are burdened financially by taxation and other regulations.

Hoteliers claim that the nation should cut value-added tax for foreign guests permanently. The nation introduced the system, which cuts the tax for foreigners and thus reduces hotel rate for them, for limited periods, such as the 1994 Visit Korea Year and the 2002 World Cup.

The government resumed the system last July following hoteliers' appeal, but it will end in December. If hotels want the tax cut again, they have to apply for it to the National Assembly.

``The hotel business is classified as an export industry according to the Trade Law. But we do not get benefits in taxation and other costs,'' Yoon Jae-hyo, assistant manager at the Korea Hotel Association, said.

He said hotels are required to pay heavy real estate taxes and traffic charges. ``Constructing new hotels in Seoul is also restricted. Only on special occasions, such as the World Cup or ASEM, were special laws established to allow hotels to expand their facilities with light taxes,'' Yoon said.

However, the biggest problem is labor costs, he said. The service business requires large manpower, so hotels have huge labor costs.

``Having migrant workers will help us reduce labor costs. However, the working visa for hotels is issued only to cooks. So hotels can have only foreign chefs, while what we really need is foreign workers who can attend guests at restaurants and bars,'' Yoon said.

The hotel association and other tourism groups recently reported these problems to the transition team and called for improvements.

Job Creation

KTO head Oh stressed that tourism would lead to more job opportunities. ``Official statistics show 1.8 million people are engaged in tourism industry here. When the same amount is invested ― 1 billion for example ― tourism can create twice as many jobs as the manufacturing industry and five times that of the IT industry,'' he said.

The presidential team said 400,000 jobs can be created in the culture and tourism field over the next five years.

``About 2 billion people live within 1,000-kilometer radius of the Korean Peninsula. Specifically, among the 1.3 billion Chinese population, 100 million can afford overseas trips. If only 10 percent of them visit Korea, it will boost Korea's tourism business,'' Kim Dae-sik, an advisor of the transition team, said.

The pan-national canal, which was the key election pledge of President-elect Lee, is also expected to create huge jobs in the tourism sector if established, as the waterway can become an attraction.

The culture ministry plans to develop villages and cities alongside the canal. Cruise tours may be available along the waterway. Ship lifts or lock gates, which are under consideration in the canal construction project, can also be tourist spots, the ministry reported to the transition team.

rahnita@koreatimes.co.kr