'30,000 Won Accommodation Coupon · 100,000 Won Vacation Expense Support' Government Invests 60 Billion Won to Revitalize Tourism

Government Announces Domestic Demand Measures, Up to 60 Billion Won Fiscal Support
10%p Increase in Cultural Expenses and Traditional Market Income Deduction Rates
Travel Permit Exemption for 22 Countries Including Japan, Attracting Overseas Tourists

The government is promoting the revitalization of K-tourism through financial support of up to 60 billion KRW in celebration of the '2023 Visit Korea Year.' Discount benefits such as accommodation support and expanded vacation subsidies will be provided to more than 1.5 million citizens to shift overseas travel demand to domestic travel.

[Image source=Yonhap News]

On the 29th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced at the 15th Emergency Economic and Livelihood Meeting chaired by President Yoon Seok-yeol, “We will provide up to 60 billion KRW in financial support to revitalize tourism.” As part of measures to stimulate domestic demand, essential travel cost discounts will be offered to a total of 1.53 million people, including accommodation subsidies of 30,000 KRW per person for 1 million people and vacation subsidies of 100,000 KRW for 190,000 people.

As part of the domestic boom-up package, more than 130 regional festivals nationwide will be expanded by theme. Consumption coupons will be issued in connection with regional festivals, and free access to public institution facilities will be increased. In this context, the government will temporarily raise the income deduction rate for cultural expenses and traditional market spending by 10 percentage points each.

The government has also decided to recognize amusement facility and cable car admission fees as part of corporate cultural and business promotion expenses. It plans to promote the use of annual leave for public officials in April and July and encourage discretionary school holidays to foster a travel-friendly atmosphere, while expanding private sector ‘travel-friendly work systems’ through accommodation support and other measures.

The Donghaeng Festival, centered on small and medium-sized enterprises and small business owners, will be expanded to three times a year and held early in May. Additionally, the purchase limit for Onnuri gift certificates will be significantly increased to support demand expansion in traditional markets. The government will actively develop traditional market themed products and foreign tourist products and improve payment convenience. Consumption coupons will be issued by local governments, and free access to public institution accommodations, cultural and sports facilities, and parking lots will also be expanded.

A plan to attract more than 10 million inbound tourists this year was also announced. The government will temporarily waive the electronic travel authorization system (K-ETA) for 22 countries, including Japan and Taiwan, where concerns about illegal stay are low.

The government plans to actively increase international flights to China, Japan, Southeast Asia, and other regions to recover to 80-90% of pre-COVID-19 levels. Deputy Prime Minister Choo said, “Under the price stabilization trend, we will implement customized domestic demand revitalization measures focusing on vulnerable sectors.”