"Summer Vacation in Gangwon-do Instead of Jeju"…Thanks to Controlling Prices?[Chosun Price Records]

(24) Surfing in Yangyangseo, Train Travel to Gangneung
Jeju's Slow Tourist Recovery... 'Bigye Samgyeopsal' Setback

As the peak vacation season approaches, the number of people preferring Gangwon-do as a holiday destination has significantly increased. On the other hand, Jeju Island, once considered a top tourist spot, is losing its position as the most preferred domestic travel destination amid negative perceptions such as 'high prices' and the 'fatty pork belly controversy.'

According to a vacation plan survey conducted by data consulting company PMI Co., Ltd. (targeting 3,000 men and women aged 20-69 nationwide), among the 1,687 respondents who made travel plans for this summer vacation, 70.8% are planning domestic travel. Gangwon-do, including Gangneung, Sokcho, and Yangyang, ranked highest as a travel destination at 31.3%, followed by Jeju (18.1%) and Busan (9.1%).

Gyeonggi Yangyang-gun Gisa Moonhae Beach. Photo by Yangyang-gun Official Blog

The popularity of Gangwon-do has been driven by Yangyang-gun, known as the best surfing spot in Korea. Yangyang-gun has become a 'hot place' for the younger generation as the number of 'beach clubs' has increased. Another popular city, Gangneung, is favored for its accessibility, making it a popular destination for train or public transportation travel.

'Within the trend of 'cost-effective travel,' the stable price trend in Gangwon-do has also had an impact. Gangwon-do has long been notorious for higher prices than the national average due to its nature as a tourist city where product and service prices are reflected at a premium. From January to May last year, the consumer price inflation rates in Gangwon-do compared to the previous year were 5.7%, 5.2%, 4.5%, 3.8%, and 3.3%, respectively, which were higher than the national inflation rates of 5.0%, 4.7%, 4.2%, 3.7%, and 3.4% during the same period. In particular, in July 2022, Gangwon-do's inflation rate surged to 7.6%, 1.3 percentage points higher than the national rate.

However, recently Gangwon-do has been narrowing the gap with the national average, emerging as a region with good travel cost-effectiveness. This year, Gangwon-do's consumer price inflation rates were 2.5% in January, 3.1% in February, 3.2% in March, 3.0% in April, and 2.7% in May. Compared to the national consumer price inflation rates of 2.8%, 3.1%, 3.1%, 2.9%, and 2.7% during the same period, Gangwon-do's rates are similar or slightly lower.

Gangwon-do is also busy attracting tourists. To stabilize consumer price inflation at 2%, Gangwon-do has launched a full-scale response in four major areas: ▲establishing a price stabilization management system ▲stabilizing prices of agricultural, fishery, and livestock products ▲stabilizing service industry prices ▲supporting public transportation use and restricting unfair practices in the tourism sector. Additionally, it operates a comprehensive price countermeasure situation room with 18 cities and counties and has formed an inspection task force composed of the province, cities and counties, and consumer groups to eradicate overcharging during local festivals.

Outpaced by Gangwon-do and Pressured by Japan... 'Tourism Jeju' Faces Ongoing Crisis

Meanwhile, Jeju Island, a representative resort area, continues to decline. Although Jeju ranks second in preference as a 'desired travel destination' after Gangwon-do, the recovery speed of tourists is slow. According to the status of domestic tourists arriving this year, January saw 953,547 visitors, a 6.2% decrease compared to the same month last year (1,016,716). February, March, and April also saw fewer tourists than the previous year: February dropped from 1,041,370 last year to 903,856 this year (13.2% decrease), March from 1,039,783 to 930,980 (10.5% decrease), and April from 1,115,662 to 1,057,080 (5.3% decrease).

Earlier negative issues related to food prices, such as the 'fatty pork belly' controversy, are believed to have adversely affected Jeju's tourism image. Since a famous black pork restaurant in Jeju was exposed on an online community in April for selling 'fatty pork belly,' reports have followed that other Jeju restaurants also sold 'fatty pork belly,' causing the controversy to spread widely. Moreover, repeated 'overcharging controversies' have led travelers to complain that "travel costs in Jeju are not even half the price of overseas trips."

Due to these setbacks, Jeju's tourism planning and visitation shares have hit record lows. According to the travel research specialist Consumer Insight's 'Travel Index Trend Analysis' released on the 25th, in 2023, consumer 'interest' in Jeju was 46%, 'travel planning rate' was 13%, and 'travel experience rate' was 9%, all the lowest since the survey began in 2017, marking a seven-year low. Compared to the peak values of 64%, 22%, and 12% recorded in 2021 (interest peaked in 2022), about one-third has dropped.

The decline in interest in Jeju has benefited Gangwon-do. In terms of planning and visitation shares, Jeju and Gangwon-do showed opposite trends: Jeju fell by 9 percentage points in planning (22%→13%) and 3 percentage points in visitation (12%→9%), while Gangwon rose by 2 percentage points in planning (21%→23%) and 1 percentage point in visitation (19.5%→21.3%). Consumer Insight stated, "It is inferred that a considerable number of travelers who left Jeju chose Gangwon," diagnosing that "Jeju's slump has led to a spillover benefit for Gangwon."

Meanwhile, Jeju, tarnished by the reputations of 'overcharging,' 'rudeness,' and 'fatty pork belly,' has begun efforts to improve its image. Jeju has launched the 'Jeju Tourism Innovation Emergency Committee' to enhance tourism quality. Governor Oh Young-hwan of Jeju said, "Since the tourism industry is highly aware of the crisis, detailed analysis and diagnosis are important," adding, "I hope this issue will be resolved with extraordinary determination and that the will to overcome it will be strengthened."