Korea's 'ambitious' plan to attract Chinese tourists unlikely to live up to expectations

The symbol for the Chinese yuan is seen at a currency exchange counter in Seoul's Myeong-dong shopping area, Aug. 18. Korea Times photo by Choi Won-suk

Measures fail to reflect changing trends: experts

By Lee Hae-rin

Korea's "ambitious" package measures to attract 2 million Chinese tourists by year-end are not likely to work out as intended as they are pressed for time in achieving the goal and fall short of reflecting current trends, according to the tourism industry and experts.

In addition, it also remains to be seen if air routes between the two countries will increase due to declining local demand for flights to China.

On Monday, the government announced a set of inter-ministerial measures to attract an additional 1.5 million inbound travelers from China by the end of this year, with a goal of reaching 2 million for all of 2023 and an annual GDP growth of 0.16 percentage points. The measures were unveiled weeks ahead of China's largest holiday season of the Mid-Autumn Festival and National Day, from Sept. 29 to Oct. 6.

Last month, the Chinese government lifted its ban on group tours to Korea, ending a six-year hiatus caused by frayed relations following the deployment of a U.S. missile defense system here.

The package includes an electronic visa fee waiver for tour groups, installation of mobile payment services nationwide and simplified procedures for duty free shopping tax refunds.

Although experts and the industry welcomed the package plan, they pointed out its limitations.

Park In-sook, the president of the Korea Tourist Guide Association (KOTGA) who has been working as a tourist guide and interpreter since 1994, said that the plan is "long-awaited great news for the industry," but is unlikely to bring immediate effects, with the Chinese holiday season only weeks away.

"It usually takes longer than three to four weeks for an international tour program to be finalized because it involves flights, accommodations, restaurants, transport reservations and many other factors," Park told The Korea Times, Tuesday, questioning whether the package deal will attract more tourists during the upcoming holiday season.

Lee Hoon, a professor of tourism at Hanyang University, called for a bolder and more aggressive approach, such as offering special promotions or incentives of an additional night of stay at accommodations, to make Korea a more appealing travel destination than neighboring countries like Japan, Thailand and Vietnam.

"It's most important to enhance the quality level of travel," Lee said, highlighting the changes in travel trends, where Chinese tourists, formerly seen as big spenders traveling in large groups, now prefer solo travel or small group travel and seek themed itineraries and shopping routes.

Lee Ji-ho, a professor of tourism at Jangan University, echoed Lee's view, stressing that the young generation, which now accounts for over 40 percent of Chinese visitors to Korea, are trend- and digital-sensitive travelers who expect a wide range of cultural experiences, covering gastronomy, leisure and local communities when visiting Korea.

Chinese tourists arrive at Incheon International Airport, Aug. 24. The Korea Tourism Organization (KTO) held a welcoming ceremony for them in celebration of the 31st anniversary of diplomatic ties between the two countries. Korea Times photo by Choi Won-suk

To meet the expectations of these travelers, the government should work with local municipalities to promote local culture and expand their travel range beyond the reach of Seoul, Jeju Island and the country's tourism hubs designated by the culture ministry such as Busan, Gangneung and Jeonju, according to Lee.

Korean Air and Asiana Airlines, the two major domestic full-service carriers, also confirmed to The Korea Times, Tuesday, that expanding flights between Korea and China would take some time as it requires authorization from the aviation authorities of the two countries.

The two companies are closely watching the changes in demand for air travel between the two countries for a potential expansion of flight services and are aware of the government's plan to accelerate the recovery, but the domestic demand for travel to China has decreased recently, according to the companies.

In response, the Korea Tourism Organization (KTO) is developing tour products based on both the changing travel trends and demands of traditional tour groups.

"We're working with China's local travel agencies and influencers to develop programs involving music concerts, esports and leisure activities targeting younger-generation travelers," an official from the KTO's China team told The Korea Times, Tuesday, adding that the group is also monitoring agencies' and visitors' feedback for quality control of tour programs.

Park urged the government to come up with detailed guidelines and crack down on the "industry's unfair business practices," such as overcharging tourists and underpaying employees, to improve the travel experience of foreign visitors and encourage them to visit Korea multiple times.