Making Chinese tourists feel at home

Asiana Airlines CEO Yoon Young-doo / Korea Times photo by Shim Hyun-chul

Asiana CEO says easing visa rules will boost tourism

By Lee Hyo-sik

Asiana Airlines CEO Yoon Young-doo believes the government should relax visa regulations to attract more Chinese tourists.

"I really would like to see the government make it easier for Chinese tourists to visit Korea,’’ the Asiana CEO said. "Attracting more Chinese travelers is the key to transforming the tourism industry into the next cash cow.’’

The head of Korea’s second-largest airline says increasing the number of Chinese tourists will help provide a needed boost to airlines, hotels and other hospitality-related businesses.

Currently, the only place Chinese nationals can visit without a visa is the country’s southern resort island of Jeju. A tourist visa is needed to visit Korea’s inland areas.

Since 2008 when the government began allowing Chinese visitors to stay on the island for up to 30 days without a visa, the number of visitors skyrocketed. The figure reached 1.6 million in 2012 and is projected to jump to 2.2 million this year, according to the Korea Tourism Organization (KTO).

If Chinese tourists are allowed to visit Seoul and other inland destinations without a visa, Yoon believes the number of mainland visitors will also increase and give a boost to revenue.

"Only about 3.5 percent of the 78 million Chinese who traveled overseas last year came to Korea. If visa regulations are relaxed, I am 100 percent positive that more will come here,’’ Yoon said. ``Asiana will do everything it can to facilitate the countrywide efforts to attract Chinese and other foreign tourists this year.’’

According to the KTO, about 2.84 million Chinese visited Korea in 2012, up 27.8 percent from the previous year. This year’s figure is expected to reach 4 million.

Attracting more tourists

Yoon paints a rosy picture for local businesses catering to Chinese tourists.

"Despite several risks, including geopolitical tension associated with North Korea and the spread of the bird flu in China, more Chinese will come here. Asiana will provide exceptional service to those flying to Korea.’’

Asiana Airlines, which was founded in 1988, is increasing the number of routes it operates to and from China. Yoon says the world’s second-largest economy presents a golden opportunity for sustainable growth in Korea.

Asiana Airlines CEO Yoon Young-doo, fourth from left, claps with U.N. Secretary General Ban Ki-moon, fifth from left, and other dignitaries in an event in New York, Oct. 24, 2012. The event celebrated the 7 billion won milestone in the “Change for Good” campaign, an in-flight donation partnership between Asiana and UNICEF.

"We will expand our presence in China by connecting Korea with cities in western Chinese provinces. We will attract new visitors from China’s inland areas, and serve Korean tourists seeking to go to relatively unknown destinations in the most populous country,’’ Yoon said.

Asiana provides the most number of services to China with 31 flights traveling to 22. The company has also introduced customized tours for Chinese tourists, including a tour of Korea’s information technology sites and a travel package for beauty treatments.

Yoon also believes the number of Japanese visitors will rebound at a gradual pace in the coming months.

"With the weakening yen and the tense diplomatic ties between Korea and Japan, the number of Japanese tourists has dropped over the past year. Together with the KTO and travel agencies, we are making every effort to draw visitors from the world’s third-largest economy.’’ In 2012, about 3.52 million Japanese came to Korea, up only 7 percent from 2011.

In another attempt to boost tourism, the CEO is urging the Korean government to introduce an ``alternative holiday system, which gives workers a Monday off,’’ if a national holiday falls on a Sunday.

President Park Geun-hye pledged to implement the alternative holiday system during her campaign last year. Once implemented, More Koreans are expected to travel overseas to enjoy an extended holiday.

``Most advanced countries implement the alternative holiday system. Now is the time for Korea to adopt it to improve public well-being and foster growth in the tourism industry,’’ Yoon said.

Optimistic about 2013

Despite an uncertain business outlook amid the continued global economic slump, the CEO expressed an optimistic view of the airline industry for this year.

"Asiana and other carriers did not perform better than previously expected, due largely to high fuel costs. But things will improve in both passenger and cargo sectors this year,’’ he said. ``Asiana will add state-of-the-art aircrafts to its fleets and launch more routes into China and Southeast Asia.’’

In 2013, the carrier plans to earn 6.3 trillion won ($5.7 billion) in sales, up 11.7 percent from 5.89 trillion won a year earlier. Yoon also wants to increase operating profits by 171.6 percent to 360 billion won from 179.4 billion won last year.

Passenger travel is projected to jump 12 percent this year, according to the Ministry of Land, Infrastructure and Transport.

"We expect more Koreans will head overseas on the back of the strengthened won and more national holidays. At the same time, more foreign travelers, particularly from China and Southeast Asia, will visit on the back of `hallyu’ and rising income levels there,’’ the CEO said. ``Fuel costs will likely remain relatively stable this year, compared to previous years.’’

Yoon also believes Asiana’s cargo business will turn around in 2013 in line with slowly improving global economic conditions. ``The air cargo market was hit hard by sluggish cross-border trade over the past few years, but the sector will show signs of a recovery this year. It is expected to expand 5 percent this year.’’

Asiana will benefit more from the rebounding cargo transport sector than its larger rival Korean Air, Yoon said, stressing that the company has boosted its transport capacity by launching new routes into Dallas, Hanoi and other destinations.

``In contrast, our competitor downsized its operation. This means we will recoup greater benefits when things improve. We will continue to expand our reach particularly in Asia and South America,’’ he said.

Yoon also has plans to turn its low-cost unit, Air Busan, into one of Asia’s leading budget carriers.

"Asia’s low-cost carrier industry has grown significantly in recent years in line with surging air travelers. Compared to its domestic and foreign rivals, Air Busan has maintained price competiveness, operation efficiency and superior safety records,’’ the CEO said. ``We will continue to help the budget carrier provide high-quality flight services at low prices.’’

Asiana owns a 50-percent stake in Air Busan, which operates 10 aircrafts, including four Boeing 737-400 planes.

Aggressive global expansion

Yoon said Asiana plans to launch two new passenger routes into Jakarta and Bali, Indonesia, in July. The carrier will also add three weekly flights between Incheon and Chongqing, China. Weekly flights between Incheon and Yangon, Myanmar, will also increase from two flights to four in July.

"We will also run a daily flight between Incheon and Chicago from the current four per week in a bid to better serve customers traveling to and from the U.S. We will continue to look for opportunities to fly to more cities around the world,’’ he said.

In order to operate more routes, Asiana plans to add next-generation aircrafts to its fleet over the next few years.

First, it will introduce six Airbus A380 airplanes, dubbed “flying hotels in the sky,” between 2014 and 2017. The A380 is a double-decker, four-engine airplane that can accommodate up to 853 passengers.

"We will operate our first jumbo jet on a long-distance route linking Incheon and Los Angeles as early as April next year. We will also add as many as 30 A350 planes to our fleet from 2017,’’ Yoon said. ``In 2008, we decided to purchase the A350, not Boeing’s 787 dream liner. We think the A350 is better suited for our fleet in terms of fuel efficiency, prices and other conditions.’’

The CEO also hinted that the carrier might buy 10 more A350 aircrafts. ``A good thing about operating A350 planes is that we can operate mid-to long-distance routes with one type of plane. It is efficient and cost-effective to maintain one kind of plane. It also means our pilots only need one license.’’

Asiana currently operates a fleet of 79 aircrafts, comprised of 45 Airbus and 34 Boeing planes.

To accommodate more aircrafts, the company will open its second hangar at the Incheon International Airport in the second half of 2013.