"Boosting Domestic Demand by Attracting Chinese Tourists"..Group Visa Fee Waiver

Ministry of Culture Announces 'Measures to Revitalize Chinese Tourism to Korea'
Full Focus on K-Culture Appeal... "Emphasis on Establishing Market Order"
Electronic Visa Issuance Fee Waived This Year... Increased Flights
Lowered Minimum Refund Amount at Duty-Free Shops... Encouraging Domestic Consumption

Chinese tourists are a key target to drive the promotion of tourism exports. In 2019 alone, 6.02 million Chinese visitors came to Korea. During this period, their per capita spending was 38% higher than the average of all foreign visitors. However, the scale significantly shrank over the past two to three years due to the spread of COVID-19. This year presents an opportunity for a rebound. Since July, China has ranked first in the number of monthly inbound foreign tourists (approximately 224,000). However, with an increasing preference for individual travel and group tours being divided into small groups based on type and purpose, new response measures are required.

On the 24th, Chinese group tourists are arriving at Incheon International Airport Terminal 1. On this day, to commemorate the 31st anniversary of Korea-China diplomatic relations, the Korea Tourism Organization held a welcoming event for Chinese group tourists. Photo by Jinhyung Kang aymsdream@

The Ministry of Culture, Sports and Tourism aims for a qualitative leap centered on high-demand experiences, considering the changing travel trends of Chinese tourists. At the 20th Emergency Economic Ministers' Meeting and Export Investment Measures Meeting held on the 4th, the ministry announced the "Measures to Revitalize Chinese Tourism to Korea." Jang Mi-ran, the 2nd Vice Minister of the Ministry of Culture, Sports and Tourism, stated, "Healthy and active domestic consumption activities by Chinese tourists can be a strong driving force for revitalizing domestic demand," adding, "We will fully upgrade Chinese tourism by leveraging the global growth of K-Culture's appeal and establish order in the tourism market."

The most notable policy is the exemption of the electronic visa issuance fee (about 18,000 KRW) for Chinese group tourists. This will be applied until December 31 to create a welcoming atmosphere. The ministry will increase flights between Korea and China by expanding airport slots (takeoff and landing times) and promptly allocate cruise berths (docking piers) for Chinese cruise ships currently applying for entry, facilitating easy and fast entry.

To increase their domestic consumption, the ministry will implement institutional improvements and shopping events. It will promote regional traditional markets and "Baeknyeon Gage" (small and medium-sized businesses that have maintained their original business for over 30 years) to diversify consumption concentrated in Seoul and hold a duty-free shop discount festival from November 11 to 30. Additionally, about 250,000 more mobile payment merchants using popular Chinese platforms such as WeChat Pay and Alipay will be added, and a VAT immediate refund service will be provided starting next month.

Long-term measures have also been prepared. A ministry official said, "From next year, the minimum amount eligible for post-tax refund at duty-free shops will be lowered from 30,000 KRW to 15,000 KRW," adding, "The immediate refund limit will also be raised from 500,000 KRW to 700,000 KRW (per transaction) to further encourage domestic consumption."

On the 24th, Chinese group tourists are arriving at Incheon International Airport Terminal 1. On this day, to commemorate the 31st anniversary of Korea-China diplomatic relations, the Korea Tourism Organization held a welcoming event for Chinese group tourists. Photo by Kang Jin-hyung aymsdream@

The period expected to yield the greatest results this year is the Chinese National Day holiday from the 29th of this month to the 6th of next month. The ministry will hold K-Tourism roadshows in Beijing (on the 13th) and Shanghai (from the 15th to 17th) to launch various marketing activities. It will also collaborate with China's three major online travel platforms: Ctrip, Qunar, and Tongcheng. A ministry official said, "At the Shanghai roadshow, we will sell hotel and airline tickets live with Ctrip, and from the 15th for one month, we will promote 'Korea Travel Month' on Qunar and Tongcheng."

The ministry will also intensify efforts to establish market order during this period. Together with related ministries, local governments, and tourism police, it will prevent low-cost tourism and illegal accommodations. It will crack down on unqualified tourist guides and exclude festivals with overcharging controversies from cultural tourism festival certification and support. The ministry will regularly check the business status of travel agencies dedicated to Chinese tourists. A ministry official said, "We plan to strictly operate a permanent expulsion system according to the 'Guidelines for the Operation of Travel Agencies Dedicated to Chinese Group Tourists.'" He added, "To prevent excessive commission payments by duty-free shops to travel agencies leading to cutthroat competition and forced shopping for tourists, we will also mandate customs reporting of commission fees and sales information."

Tourism programs will be diversified to meet changing demands. K-Culture will be the foundation of all initiatives. According to the "2023 Hallyu Survey," Chinese people show the highest interest in Korea in dramas, entertainment shows, games, fashion, beauty, and food. Accordingly, the ministry will offer a chance to enter the "K-Culture Bucket List Challenge" when purchasing airline tickets. Through a lottery, 10,000 people will receive differentiated experiences such as "e-sports with professional gamers," "Han River emotional picnic," and "K-League baseball cheering." Tourism products linked to the "100 K-Culture Tourism Events" will be developed to revitalize regional tourism, and products combining plastic surgery and beauty preferred by Chinese MZ generation and health checkups and tourism for middle-aged and older groups will be extensively promoted.

China has lifted the restrictions on group tours to Korea for the first time in 6 years and 5 months, raising expectations that this will be a boon for the domestic travel, hotel, and duty-free industries. On the 11th, foreign tourists lined up in long queues to enter a duty-free shop in downtown Seoul. Photo by Kang Jin-hyung aymsdream@

The ministry will also select "Excellent Tourism Products" for travel agencies dedicated to Chinese tourists. It will award quality certification marks and give preferential treatment during renewal evaluations to promote the development and distribution of premium tourism products. For large-scale MICE tourism and school trips with over 100 participants, dedicated officers from the relevant country's diplomatic missions and the Korea Tourism Organization will be appointed. They will provide consulting support for visa applications and various domestic tourism matters. A ministry official said, "We plan to open the Inspire Complex Resort on Yeongjongdo early within this year and newly develop region-specific tourism programs enjoyed at cruise ports such as Jeju and Busan."