The U.N. World Tourism Organization (UNWTO) reported that
international tourist arrivals grew by 4.4 percent in 2015 to reach a whopping
1,184 million. The total impact of the tourism sector on the world economy in
2014 was approximately $7,580 billion, or 9.8 percent of world GDP. As the
economic outlook for the near future remains bleak, the robust performance of
the tourism sector provides the global economy with much-needed vitality and
thus greatly contributes to worldwide economic growth and job creation.
Reflecting the worldwide trend, Korea's tourism industry
has experienced a boom of its own in recent years. Between 2009 and 2014, the
number of foreign visitors nearly doubled from 7.8 million to 14.2 million. The
impact of the thriving tourism industry on the Korean economy is palpable. In
2015, the travel and tourism sector made up 5.1percent of national GDP and
directly generated 561,000 jobs, or 2.2 percent of total employment.
In spite of the rapid rise of inbound tourists, Korea still
lags far behind other Asia-Pacific countries. Compared to Korea's 14.2 million
visitors (2014), Hong Kong drew 27.8 million arrivals while Thailand and
Singapore registered 24.8 million and 15 million visitors each. As a whole, the
Asia-Pacific region recorded a year-on-year increase of 13 million
international tourists in 2015, reaching a total of 277 million visitors.
Worryingly, international visitors to Korea declined for
the first time in 12 years in 2015. This slump was mostly due to the outbreak
of the Middle East Respiratory Syndrome (MERS) _ the massive cancellations of
flights and hotels in June and July of last year were a hard hit for
tourism-related revenues. Although the sector has bounced back relatively fast,
it is clear that the domestic tourism industry is vulnerable to external
conditions such as the deteriorating global economic situation, the slowing of
the Chinese economy, the spread of epidemics, and the increasingly fierce
competition with other travel destinations in the region.
The growth potential for Korea's tourism sector is still
very high, and there are many initiatives that could help put Korea more firmly
on the map of international destinations. Creating a more diverse range of
tourism programs, boosting Korea's advantage as a business and leisure travel
destination, and promoting niche sectors such as medical tourism are some of
the steps that might enhance Korea's competitiveness.
For one, the Korean tourism sector should make an effort to
develop differentiated tourism products that attract repeat-visitors with
diverse needs and expectations. A standard sightseeing program focusing on
shopping and gastronomy in cosmopolitan Seoul? This will definitely be
attractive for, say, a group of young female tourists in their 20s and 30s. But
what about other types of travelers, such as senior citizens who prioritize
rest, intrepid adventure travelers seeking new challenges, or families with
children who would prefer a farm holiday close to nature? A well-focused effort
on developing a wide range of tourism programs will strengthen the base of
Korea's tourism industry. Additionally, it may help to attract more tourists in
the low winter season, and encourage more visits to the heretofore rather than
neglected provinces and small towns.
Another field of strategic growth potential is the meeting,
incentives, conventions and exhibitions/events industry. Since the late 2000s,
the Korean government has actively pursued a policy of promoting this industry
by hosting a variety of international events and supporting the growth of the
sector. In 2014, 636 international meetings were held in Korea, thus making it
the fourth hosting country for these kinds of events according to the Union of
International Associations. Korea's superb transport infrastructure,
world-class readiness, and high-quality cultural resources all make it a very
competitive destination for today's business travelers. Nowadays, a rising
segment of business travelers have flexible schedules and thus look to add
leisure days onto business trips. Offering this group just the right mix of
business and leisure could considerably boost tourism revenues.
Recently, Korea has also experienced rapid growth in
medical tourism, a fast-expanding sector with a continuous and significant
growth potential. Ever-longer life expectancy, rising healthcare costs in
developed countries, and globalization of modern medicine all contribute to the
rise of patients willing to travel for healthcare. In the case of Korea, what
initially started with cosmetic surgery driven by the K-wave boom has now
expanded into a wide range of medical procedures. The potential for further
growth is still high in Korea, given the world-class quality and price
competitiveness of domestic medical care. The government can further boost the
medical tourism market by promoting innovation in the medical industry,
strengthening the legal framework for practices in medical tourism, and
attracting more foreign investment in medical infrastructure.
Without a question, today's tourism industry is an economic
powerhouse that acts as a major driving force for economic development. In
these times of economic uncertainty and high unemployment, the Korean
government should take the necessary steps to create a strong high value-added
tourism industry by maximizing the country's cultural and natural resources and
creating new resources by innovation. The implementation of a coherent
long-term growth strategy for tourism, together with a strong drive to improve
cultural contents such as K-pop, TV series and movies, will go a long way
toward consolidating Korea's status as a global destination.
By Park Hee-kwon
Park Hee-kwon is
ambassador to the Kingdom of Spain and Permanent Representative to the United
Nations World Tourism Organization (UNWTO).
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