Korea's special tourist zones fail to attract foreign visitors, boost local economy

Bosan-dong's special tourist zone in Dongducheon, Gyeonggi Province, is empty, May 20, 2021. Korea Times file

Bosan-dong's special tourist zone in Dongducheon, Gyeonggi Province, is empty, May 20, 2021. Korea Times file

By Jung Da-hyun

Special tourist zones, established to attract foreign visitors and boost the local economy, have largely fallen short of their goals, according to data from municipal administrations, Friday.

Many of these zones struggle to attract tourists, and most fall short of meeting the original aims set for the initiative.

The special tourist zones, introduced under the Tourism Promotion Act in 1993, were created to develop key destinations across the country into international tourist hubs.

Initially, Gyeongju, Jeju, Mount Seorak, Haeundae and Yuseongcheon Hot Springs in Daejeon were designated as the first special tourist zones in August 1994. The program has since expanded to 34 destinations in 13 cities and provinces nationwide.

However, the majority of these zones are struggling to meet the requirements. To qualify, each special zone must attract over 100,000 foreign tourists annually, but many fall short of this standard.

Of the 34 designated zones, 26 do not even track foreign tourist numbers. Six of the eight zones that collect data failed to meet the required threshold from 2021 to 2023.

Only two zones — Busan's Mount Yongdu and Jagalchi Market — have managed to surpass 100,000 international visitors annually.

Seoul, which hosts seven special tourist zones, including Itaewon, Myeong-dong, Jamsil and Dongdaemun Fashion Town, does not currently compile statistics on foreign visitors.

Eurwang-ri in Incheon, Bugok Hot Springs in South Gyeongsang Province and Gyeongju in North Gyeongsang Province have reported fewer than 100,000 foreign tourists per year.

Despite the substantial budget allocated to special tourist zones, their impact on revitalizing local economies has been minimal.

The government allocates 3 billion won (approximately $2.19 million) each year for this initiative. Local governments selected for development projects receive funding ranging from 100 million won to 500 million won, depending on the project's scale.

Most of the funding for these zones has been allocated for facility upgrades, including the installation of outdoor electronic boards, information displays, and symbolic sculptures.

Despite failing to meet the required standards for attracting foreign visitors, no special tourist zone has been stripped of its designation.

This has led to criticism that the evaluation process for these zones is not being conducted fairly.

Local governments evaluate their special tourist zones annually, while the Ministry of Culture, Sports and Tourism conducts evaluations every three years.

However, since the authority to designate and manage special zones was transferred to city and provincial governors in 2004, the ministry can only recommend removing a zone's designation, leaving enforcement out of their hands.

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