South Korea will expand its half-price travel program, which refunds half of travel expenses in local gift certificates, to nine additional regions this fall.
The Ministry of Culture, Sports and Tourism and the Korea Tourism Organization said on the 27th that they had selected nine areas as new participants for the second half of the year: Hwacheon in Gangwon Province; Goseong, Sancheong and Hamyang in South Gyeongsang Province; Andong and Yeongcheon in North Gyeongsang Province; Seocheon and Taean in South Chungcheong Province; and Jangheung in South Jeolla Province. The regions will begin services in stages from late this month after preparations are completed.
The program refunds half of travel expenses in mobile local gift certificates to people who visit rural and fishing areas designated as population-declining regions. The refund is capped at 1 million won per person, or 1.4 million won for young adults. It launched in April in 16 areas including Pyeongchang, Jecheon, Gochang and Namhae.
An analysis of refund records and survey responses by the ministry and the tourism agency found that 5.2 billion won in refund funds had been disbursed through June, generating at least 16.2 billion won in spending in the participating regions. That is 3.1 times the amount of refund funds committed.
Food and beverages accounted for the largest share of spending at 45.5%, followed by lodging at 32.2%, shopping and local specialty goods at 10.2%, and tourism and hands-on activities at 6.3%. Some 76.4% of users said they spent more than originally planned in anticipation of the refund.
Among users, 31.2% said they took a trip they had not originally planned, and 50.0% said they changed their destination to a participating region. A total of 56.3% said it was their first visit to the area.
Several local governments among the first-half participants, including Miryang, Geochang, Wando and Yeonggwang, have allocated additional budgets to continue the program in the second half. Applications are accepted on each local government's website.
Kang Jung-won, head of the ministry's tourism policy office, said the program eases the burden of travel costs while bringing new visitors and residents to population-declining regions. "We will work closely with local governments so that the public response continues into the fall," Kang said.
