Tourism industry in tears over ‘restriction on travel to Korea’
Hotels are concerned about damage due to increased gatherings in the city centre
Year-end car crisis due to shrinking consumption
Department stores that were aiming for a rebound are also in emergency mode.
The industry is suffering from severe repercussions from the rejection of the impeachment motion against president Yoon Seok-yeol. The tourism industry, which was showing signs of recovery after the pandemic, is worried that the spark of recovery will be extinguished due to travel restrictions recommended by major overseas countries. Political instability can completely freeze the already sluggish domestic economy, so the distribution and consumer goods industries, which were aiming for a rebound at the end of the year, are unlikely to be able to avoid a direct hit.
● Foreign tourists anxious about “what the heck is going on”
According to the hotel industry on the 8th, since the martial law situation, inquiries from foreign tourists have continued to ask whether it is safe to travel to Korea. An official at a five-star hotel said, “On the day the martial law was announced and the morning after, the front desk was flooded with requests to ‘explain what’s going on.’” In addition, the hotel industry is concerned about the cancellation of various events and banquets. This is because the social atmosphere is weakened and events may be disrupted by large-scale gatherings in urban areas.
Travel companies are also concerned about the political conflict prolonging. Some countries are urging their citizens to refrain from visiting Korea. The British Ministry of Foreign Affairs said, “Protests are expected around Gwanghwamun, the Presidential Office (Triangle), and the National Assembly (Yeouido),” and the Israeli Ministry of Foreign Affairs also issued a notice regarding travel to Korea, “Review the need for a visit.” Lee Jong-woo,a professor of business management at Ajou University,said,“Foreigners who feel anxious due to the ongoing protests will reduce their footfall,” and added,“It could be a blow to industries with a high proportion of foreign sales.”
The government formed a joint response team with the private sector.The Ministry of Culture, sports and Tourism and the Korea Tourism Organization held a meeting on the 6th to discuss pending issues in the tourism sector with travel-related private associations and organizations. At this meeting, it was decided to create a joint response system to monitor inquiries and reservation cancellations from overseas travelers on a daily basis and share opinions on necessary measures.
● The ‘year-end period’ is in danger of disappearing due to weakening consumer sentiment.
An unstable political situation is likely to lead to a decline in consumption.In fact, the domestic economy plummeted during the last two impeachment regimes.
According to the Bank of Korea’s consumer trend survey statistics, the consumer sentiment index in the second quarter of that year (April to June), immediately after the passage of the National Assembly’s impeachment bill against former President Roh Moo-hyun in March 2004, was 89, 6.3% higher than 95 in the previous quarter (January to March). fell. In the fourth quarter of the same year (october to December),it fell to 85. In December 2016, when the impeachment bill against former President Park Geun-hye passed the national Assembly, the consumer sentiment index plummeted nearly 10% from two months ago to 94.
Traditionally, December is considered the peak season for car sales when automakers aggressively hold various discount events. This year,there was a lot of bad news due to political issues and a strike. On the 5th and 6th of this month, the hyundai Motors and GM korea labor unions went on partial strike, and on the 11th, the Korea Metal Workers’ Union announced a full strike. There are also predictions that as society’s attention focuses on the impeachment issue, consumers’ interest in purchasing cars will decline. an automobile industry official said, “Domestic sales were sluggish throughout this year, but we encountered another large reef at the end of the year.”
Department stores and other distribution companies that were trying to rebound due to the special year-end season, including Christmas, were also put on alert. they entered an ’emergency management system’ by holding an emergency management strategy meeting that included a review of next year’s business plan. An executive at a large distribution company said,“If a major negative event like the current one occurs,domestic companies could suffer fatal injuries. We will take a conservative approach to all management activities, including investment, until the first half of next year (January to June).”
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What are the main challenges currently facing the tourism industry in Korea?
Interview Title: Navigating Turbulent Waters: The Future of Tourism in Korea
Interviewer: Welcome to Time.news, where we discuss pressing issues affecting our world today. joining us is Professor Lee Jong-woo, an expert in business management at Ajou University. professor Lee, thank you for being here.
Professor Lee: Thank you for having me.I’m glad to be here to discuss this crucial topic.
Interviewer: The tourism industry in Korea is facing meaningful challenges following the rejection of the impeachment motion against President Yoon Seok-yeol. Can you elaborate on how political instability is impacting tourism?
Professor Lee: Certainly. The recent political events have created a cloud of uncertainty. Many foreign tourists are now apprehensive about traveling to Korea, which was just beginning to recover from pandemic restrictions. The constant political protests and instability discourage travel, meaning fewer visitors and potential cancellations of reservations.
Interviewer: That’s quite alarming. We’ve seen reports of increased inquiries from foreign tourists seeking safety assurances. What are you hearing from the hotel industry regarding their concerns?
Professor Lee: The hotel industry is understandably anxious. After the announcement of martial law, hotels, especially five-star establishments, reported overwhelming inquiries about safety. They’re worried not only about occupancy rates but also about the cancellation of major events and banquets, which can substantially impact their revenue.
Interviewer: It sounds like the situation is evolving rapidly. How have foreign governments reacted?
Professor Lee: There’s been a notable reaction. Such as, the British and Israeli governments have advised their citizens to reconsider traveling to Korea, highlighting the anticipated protests. Such advisories make potential visitors think twice, further diminishing our tourism numbers.
Interviewer: In light of this, have any governmental measures been taken to address these concerns?
Professor Lee: Yes, the government is actively working wiht the private sector. A joint response team has been formed to monitor the situation and manage the influx of inquiries and cancellations. They held a meeting recently to discuss strategies and support the tourism sector during this turmoil.
Interviewer: Given the precarious state of the tourism industry, what can businesses do to mitigate the damage from these events?
Professor Lee: Businesses need to be proactive.They should enhance dialogue with potential tourists, addressing safety concerns and providing real-time updates. Additionally, diversifying offerings and improving cancellation policies can also make travelers feel more secure. it’s essential to maintain flexibility and create incentives that might encourage domestic tourism as a buffer against foreign travel declines.
Interviewer: Looking further ahead, what do you envision for korea’s tourism recovery if this political situation persists?
Professor Lee: If the political instability continues, it could have long-term repercussions. the tourism sector, which is essential for economic recovery, may stagnate. Though, if the government and private sector work together efficiently to stabilize the situation and reassure tourists, we could see gradual recovery once the political climate improves.
Interviewer: Thank you, Professor Lee. Your insights are invaluable during this critical time for Korea’s tourism industry. We hope for a swift resolution that supports both the economy and those relying on tourism.
Professor lee: Thank you, it was a pleasure discussing these important issues with you.
Interviewer: This has been Time.news. stay tuned for more discussions on pressing global matters.