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Gov't expands beneficiaries in vacation support program
By Jun Ji-hye
The government has decided to expand beneficiaries in its vacation support program for workers at small or medium-sized companies in a bid to help boost the domestic tourism industry that has been hit hard by the COVID-19 outbreak, officials said Friday.
A poster for the vacation support program run by the Ministry of Culture, Sports and Tourism, and the Korea Tourism Organization / Courtesy of Korea Tourism Organization
By Jun Ji-hye
The program run by the Ministry of Culture, Sports and Tourism, and the Korea Tourism Organization (KTO) is aimed at vitalizing domestic travel and improving a corporate culture regarding vacation of employees.
The program calls on workers to pay 200,000 won ($163) in their vacation expenses, and companies and the government to grant 100,000 won to each of them.
The government began to receive applications for the program, Tuesday, to collect an additional 40,000 beneficiaries. This will raise the total number to 120,000 this year, including the 80,000 that have been already selected.
The KTO said the measure was to minimize adverse effects on the tourism industry and help travel companies overcome the crisis at the earliest possible date amid the COVID-19 pandemic.
Those working for small or medium-sized companies, private non-profit organizations and social welfare facilities can apply for the program at vacation.visitkorea.or.kr.
Those selected can purchase tour packages, flight or train tickets, hotels, theme parks and rented cars at cheaper prices at an online store exclusively for them until February next year.
Additional payment is available if the total price exceeds 400,000 won. If workers use less than 400,000 won, the remaining money will be returned.
Besides workers, owners of the companies who participate in the program will receive benefits as well ― they will get extra points in the government's assessment on working innovation and other criteria.
The KTO said public enterprises as well as large companies have joined the program. Korea Western Power under Korea Electric Power Corp. and five other companies vowed to support their 35 partner firms.
Local governments will also join forces to promote the program in a bid to revive regional economy in preparation for the post-pandemic era, the organization added.
“Our survey showed that the vacation support program has helped boost local tourism and created an economic effect worth 142 billion won,” said Kim Seok who is in charge of welfare-related affairs at the KTO. “We hope expansion of this year's program will help recover domestic demand and revive regional economy.”
Travel companies have been suffering deepening financial troubles due to the spread of the new coronavirus, with some small enterprises even expected to file for bankruptcy.
The companies claimed cancellations of trips in addition to few new reservations have been driving them into a wall as it is getting harder for them, most of which have been refunding deposits paid by customers, to pay office rent and staff wages.
In response, the tourism ministry has offered a variety of support measures including loan programs for travel firms nationwide since February.
The ministry is also cooperating with municipal administrations to reduce property taxes paid by hotels, tourist facilities and international conference facilities.