ΆΓ Korea to Lift Restrictions on Foreign Investment in Local Tourism Industry

Korea Times 2001. 2. 14

The Culture-Tourism Ministry yesterday announced a package of tourism promotion programs for Visit Korea Year 2001, which includes the removal of restrictions on foreign investment in the local tourism industry, among others.

The ministry's announcement was made during Culture-Tourism Minister Kim Han-gill's briefing to President Kim Dae-jung yesterday regarding the ministry's tourism projects for this year at Chong Wa Dae.

The tourism project consists of four main programs - easing of restrictions on development in metropolitan areas for tourism purposes; increasing state funding to develop tourist resources; encouraging foreign investment in Korea's tourism sector; and reinforcing tax benefits and financial assistance for investment in tourist accommodations.

In order to further promote tourism in metropolitan areas and also, to boost foreign investment, the Culture-Tourism Ministry is set to expand the current limit on the size of tourist sites from 30 square kilometers to 500 square kilometers. The ministry will also permit foreign investment in tourism and leisure facilities to exceed 50 percent.

The program to increase the amount of state funding for the development of tourist resources is aimed at reinforcing tourist facilities, whose accommodation capacities are failing to catch up with the continuing increase of inbound tourists.

As a measure to encourage foreign investment, the ministry will extend the deadline of payment for foreign investors who declare their investment status from Dec. 31, 2003 to Dec. 31, 2005 as well as expand the zone for foreign investments. It is predicted that this will boost foreign investments, helping the overall development of the Korean tourism industry.

Amid the ever-increasing influx of foreign tourists in Korea, the ministry is acknowledging the acute need to rapidly develop accommodation facilities, such as hotels. The ministry also proposed a package of tax breaks and financial support for the tourism industry, including a cut in interest rates on loans to develop tourist facilities and an increase of loan ceilings, in addition to lowering utility fees for those specific tourism sites.

Tourism for All

The ministry also announced that it will make more efforts to guarantee equal opportunity for tourism, acknowledging the fact that tourists have been mainly middle-high class citizens.

Tourism sites will be renovated throughout the country so that all citizens can enjoy trips at modest costs. The ministry will also develop more diverse leisure destinations to better cater to the diversifying demands of tourists. It will also set up a new standards system, such as hygienic and environmental standards, in a bid to systematically improve the facilities that lag behind those standards.

As another measure to boost tourism, the ministry will put into circulation from May this year coupons that would be exchangeable for various services ranging from accommodation, meals and airline tickets to ski resort passes and souvenirs. The price range of these coupons will vary significantly, with inexpensive coupons available starting at 10,000 won and 50,000 won, to more high-end coupons costing 300,000 won or 500,000 won. These coupons will be issued and managed by the Korea Tourism Association, which is now in the process of designing, printing, and advertising them. Revenues garnered from the program will partially be used for maintaining tourism welfare funds.

To counter the current trend of Koreans leaving Korea for overseas destinations, the ministry will launch the ``Let's Discover Korea First" campaign. This campaign will be based on active advertising, including special TV programs introducing various tourist spots in Korea. The Internet will be another major medium for this campaign.

Noting the scheduled change in the primary and middle school system under which students will only have to attend classes five days a week, as well as the new policy leaving the scheduling of vacation periods up to the discretion of the headmasters of each school, the ministry predicts a relaxation of the previously highly-concentrated vacation periods during summer and winter. The ministry announced that it would push forward with efforts to further promote this new trend that will ease problems such as traffic congestion and shortages of accommodations.

The ministry is also set to reinforce education programs for tourist guides to produce more personnel well versed in Korean history, culture and tradition. It announced that 1,000 such expert guides will be trained for service by 2002. This program is aimed at making Korea tour more educational, especially for foreigners who usually know little about Korea when they visit.

Environment-Friendly Tourism

The ministry also acknowledges that the Korean tourism industry needs to develop environment-friendly tourism.

In that respect, Kanghwa-do island, famous for its tidal flat, which is deemed as one of the world's top five environmental wonders, containing numerous marine organisms, is deemed an ideal spot for the eco-tourism.

Noting the potentials of the island as a tourist spot, the ministry plans to turn the island into an international tourist site.

As another tourism project in provincial areas, the ministry is organizing a train trip through the inland villages along Somjin River, which remain free from pollution.

The ministry reported it would carry out a project, started in 1999, to develop seven major tourist zones simultaneously. The Chongdo bullfight, one of the traditional events of the Korean rural communities, is one of the 50 programs included in the project.