Leap as a Tourism and Business Hub
Expected to Drive Regional Economic Revitalization
On the 19th, Pohang City announced that the country's top hotel operator (Company A) will participate solely in the private bidding for the luxury hotel in the Hwanho District.
This participation is regarded as an important outcome of Pohang City's efforts to leap forward as a central city for tourism and industry on the East Coast.
Company A's involvement is expected to be a decisive opportunity to actively accommodate business demands arising from the expansion of tourism, MICE industries, and new industries promoted by Pohang City, going beyond the simple construction of lodging facilities, and to accelerate the revitalization of the local economy.
Recently, local governments have been striving to attract luxury hotels to strengthen the competitiveness of tourism and service industries; however, due to high interest rates, rising construction costs, and business feasibility issues, building new hotels has become very difficult.
Pohang City also experienced failures in the first and second bidding rounds but succeeded this time by directly implementing the Hwanho District urban development project, providing the site, and preparing practical support measures that meet the hotel operator's demands. This is the result of Pohang City's strategic efforts to become the hub of the East Coast.
The city made multifaceted efforts to achieve this outcome. It emphasized business feasibility through investment attraction briefings and consultations with private companies, and built trust with private operators through legal reviews and various opinion-gathering processes.
Additionally, it presented a comprehensive vision including the expansion of tourism and leisure infrastructure. Along with the development of tourism resources such as the construction of the Yeongilman Bridge, the establishment of an international convention center, and the expansion of golf courses, the city revealed concrete plans to transform the Hwanho District into a complex city where industry, tourism, and business harmonize.
The luxury hotel project in the Hwanho District is expected to play an important role in revitalizing Pohang's tourism industry and economy. In particular, Pohang City anticipates that Company A's participation will attract domestic and international tourists and business visitors, leading to the development of the service industry and job creation based on this.
Pohang is rapidly emerging not only as a tourism hub but also as a center for advanced new industries such as secondary batteries, bio, hydrogen, digital, and food tech. As these new industries expand, the need for luxury hotels that satisfy the demands of domestic and international business stakeholders and investors visiting Pohang is growing.
The luxury hotel in the Hwanho District will be utilized not only as lodging and conference space to support their business activities but also will lead to the development of long-term stay tourism products, driving qualitative growth in Pohang's tourism.
The city plans to establish a tailored development plan for the Hwanho District starting next year. The Hwanho District will become a representative landmark of Pohang by creating public facilities that local residents can enjoy alongside the luxury hotel on a site of approximately 15,000 pyeong.
Moreover, the Hwanho District is expected to grow as a hub for the MICE industry, expanding the influx of domestic and international tourists as well as business visitors through hosting international conferences and large-scale events.
Attracting a luxury hotel goes beyond merely expanding the tourism industry; it directly leads to regional economic revitalization and job creation. The Hwanho District luxury hotel is expected to absorb both tourism service industries and business activities, creating employment centered on women and youth.
Furthermore, in collaboration with local universities, the city plans to operate customized talent development programs, establishing a system where local talent can be immediately deployed in industrial sites.
Pohang City, having succeeded in attracting this luxury hotel, intends to continue active cooperation with the council to resolve high construction costs and profitability issues for private investors, striving for proactive policy support such as site provision, tax benefits, and construction cost assistance.
Mayor Lee Kang-deok stated, “This project will be an opportunity for Pohang to grow into a global city where industry, tourism, and business coexist,” adding, “We will continuously cooperate with Pohang citizens, the local community, and the hotel company to present a sustainable urban development model.”
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