Pension Rates Soar to 1.4 Million Won, Hotel Prices Hit 2.2 Million Won
Local Governments Struggle to Intervene, Calls Grow for Industry Self-Regulation
As summer vacation season arrives, accommodation prices at major tourist destinations across the country have skyrocketed, reigniting controversy over so-called "price gouging." Some accommodations are charging several million won per night, and unfair practices such as recalculating prices after reservation cancellations have also emerged, raising concerns about a potential decline in domestic tourism demand.
According to recent price information posted on accommodation platforms, as of the second weekend of this month, the price for a one-night stay at a pension in the Chuncheon area of Gangwon Province reached up to 1.4 million won. Another nearby pension was found to be charging 1.1 million won per night. Prices were even higher at luxury hotels, with one hotel in Hongcheon County charging 2.2 million won per night for four adults. While this price includes options such as breakfast, critics point out that the increase is excessive compared to the off-season.
The situation is not much different at regular accommodations in other tourist destinations within Gangwon Province. Many motels in major areas such as Sokcho, Gangneung, Pyeongchang, and Yangyang were found to be charging around 400,000 won per night on weekends. This is more than two to three times higher than typical off-season rates, but many consumers complain that the quality of service does not match the price. Local tourism authorities state that it is difficult to directly control prices. Instead, they are encouraging voluntary improvements to foster a healthy tourism environment.
Busan is experiencing a similar situation. Ahead of the Gwangalli Fireworks Festival scheduled for November, some accommodations have sharply raised their prices, leading to a surge of consumer complaints on online communities. In particular, some accommodations have demanded more than double the original price from customers with existing reservations, citing changes to the festival schedule, which has further fueled controversy. On the day of the festival, some nearby hotels were charging more than 1 million won per night.
Industry experts warn that while such pricing policies may boost short-term profits, they could ultimately drive tourists away in the long run. One industry insider stated, "As we saw in the past with Jeju Island, it takes a long time for a region to recover once it loses consumer trust," and emphasized, "For sustainable tourism, both local governments and the industry need to establish standards and strengthen self-regulation."
According to data submitted by the office of National Assembly member Jin Jongoh to the Korea Consumer Agency, there have been a total of 155 consumer complaints related to price gouging at tourist destinations nationwide over the past five years.
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