Hotels, Duty-Free Shops, and Travel Agencies to Engage in Tripartite Dialogue to Overcome COVID-19 Crisis

Economic, Social and Labor Council Launches Tourism and Service Industry Committee
Discusses Employment Retention Measures and More

[Asia Economy Reporter Kim Heung-soon] A tripartite social dialogue has begun to seek employment stability measures for hotel, duty-free shop, and travel agency workers hit hard by the prolonged COVID-19 pandemic, as well as ways to secure competitiveness in the tourism and service industries. The Tourism and Service Industry Committee under the Sectoral Committee of the Economic, Social and Labor Council (ESLC) held its launching ceremony and was officially inaugurated on the 19th at the ESLC main conference room.

The business conditions of the tourism and service sectors have been worsening due to the impact of COVID-19. Preventive measures against infectious diseases, such as minimizing face-to-face contact and social distancing, have led to a sharp decline in domestic and international travel demand. Employment issues are particularly severe. Employment statistics in the tourism and service sectors have already deteriorated, with a rapid decrease in employment insurance subscribers and a significant reduction in the number of workers in businesses.

Considering these industry circumstances, the Tourism and Service Industry Committee plans to focus discussions on 'worker employment and labor conditions.' First, it will assess the employment status of hotel, duty-free shop, and travel agency workers and, based on this, seek effective employment retention measures. Solutions will also be sought not only for regular workers but also for non-regular workers belonging to outsourced and partner companies who are vulnerable to restructuring.

As a mid- to long-term agenda, the committee will also discuss development plans for the tourism and service industries through tripartite cooperation. Prior to the launching ceremony, labor and management in the hotel sector and the labor-management of Modetour signed their own joint agreements and pledged to work together to overcome the crisis.

The committee chairperson is Roh Kwang-pyo, director of the Korea Labor and Society Institute. Labor and management representatives (three each) from the hotel, duty-free, and travel sectors will participate in the discussions, along with two government members and three public interest members. The committee’s discussion period is set for one year from the launch date.

Chairman Roh said, "Even before COVID-19, many countries have fostered the tourism and service industries, which are clean and high value-added industries, as strategic 'future growth' industries. Under the recognition that retaining skilled workers proficient in face-to-face services is a prerequisite for maintaining and developing Korea’s tourism and service industries, the tripartite parties will pool their wisdom."

The event was attended by Park Yang-woo, Minister of Culture, Sports and Tourism; Lee Jae-gap, Minister of Employment and Labor; and Moon Sung-hyun, Chairman of the ESLC.