[2020 National Audit] "Tourism Industry Hit Hard by COVID-19, Must Find Breakthrough with Big Data"

The domestic terminal at Gimpo Airport in Gangseo-gu, Seoul is bustling with travelers. Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Heung-soon] The domestic tourism industry, which has been hit hard by the novel coronavirus disease (COVID-19) crisis, needs to find a breakthrough through services based on big data analysis, according to a recent claim.

On the 26th, according to the National Assembly audit data received by Choi Hyung-doo, a member of the Culture, Sports and Tourism Committee from the People Power Party, from the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization, the estimated damage to the five major tourism service sectors (travel agencies, hotels, international conferences, casinos) due to COVID-19 amounts to approximately 3.98 trillion won. It is expected that by the end of this year, the number of foreign visitors will decrease by up to 15.08 million, and tourism revenue will drop by 17.33 billion dollars.

Rep. Choi stated, "Although travel agencies and tourism accommodation businesses have been designated as special employment support sectors and employment retention subsidies are being provided, mid- to long-term measures are necessary," adding, "Tailored tourism industry measures using sophisticated big data are urgently needed."

According to a survey conducted by the Korea Tourism Organization this year on 261 individuals from local governments and tourism venture companies regarding obstacles to utilizing big data, the main obstacles identified were ▲lack of analysis infrastructure (54.3%) ▲lack of organization and personnel (53.5%) ▲budget shortages (51.6%) ▲difficulty in planning big data projects (45.3%) ▲lack of knowledge on big data collection and analysis methods (40.6%).

Source: Office of Representative Choi Hyung-doo

According to data analyzed by the Korea Tourism Organization using navigation big data and others, the number of visitors to indoor-type tourist attractions such as zoos (22% decrease compared to the previous year), theme parks (40% decrease), museums (39% decrease), and art galleries (23% decrease) sharply declined, whereas the number of visitors to outdoor-type tourist attractions such as campgrounds (42% increase) and drive-in theaters (103% surge) actually increased.

As of last month, while the average number of tourists to local governments nationwide decreased by 21%, areas that had not previously received much attention, such as Goseong-gun in the northernmost part of Gangwon-do and Ongjin-gun in Incheon, which has many islands, were noted as untact (non-face-to-face) tourist destinations, with an increase in the number of tourists.

Rep. Choi said, "In the era of the 4th Industrial Revolution, data is the driving force of national growth," and added, "Tourism trends have changed after COVID-19, and if information accurately analyzing who, when, where, what they ate, how much they bought, and what they felt is provided, it will greatly help the tourism industry recover after the pandemic."