[2020 National Audit] "Travel Industry Facing Crisis, More Active Support Needed"

Democratic Party Rep. Park Jung: Korea Tourism Organization's Financial Support for Travel Agencies This Year Only 1.32 Billion KRW
"Only 0.86% of Registered Companies on Paper Received It"

A quiet departure hall at Incheon International Airport Terminal 1 / Photo by Mun Honam munonam@

[Asia Economy Reporter Kim Heung-soon] There has been a call for more active budget support for the travel industry, which is on the brink of collapse due to the novel coronavirus disease (COVID-19) crisis.

On the 16th, Park Jung, a member of the National Assembly's Culture, Sports and Tourism Committee from the Democratic Party of Korea, made this claim ahead of the National Assembly audit of the Korea Tourism Organization, stating that the budget the organization supported for travel agencies this year was only 1.32 billion KRW.

Park said, "Among the tourism industry, the travel sector suffered the greatest damage, with consumer spending dropping to about 90% compared to the same period last year," adding, "The estimated damage by the Korea Culture and Tourism Institute amounts to 5 trillion KRW."

He further stated, "From the top companies to mid-sized travel agencies, many are struggling, and numerous small travel agencies are effectively closed even if their doors are open, so support is urgently needed."

According to Park, this year the Korea Tourism Organization provided 1.32 billion KRW in support to about 187 travel agencies. He pointed out, "As of the end of September this year, it was identified that 21,552 travel agencies were operating on paper, but even if many are not actually operating, only 0.86% of companies received budget support from the Korea Tourism Organization."

He added, "Travel agencies are in a situation where every single won counts, yet the Korea Tourism Organization used 400 million KRW for building a website and recruiting companies under the pretext of creating an online recruitment platform," emphasizing, "Finding any form of support for travel agencies that are on the verge of collapse should be the priority."