2. Where Success Knows No Limits
Index
Korea
Where Success Knows No Limits
1. Industry Overview 3
2. Status of Korea’s Tourism Industry 11
3. Government Policies 14
4. Status of FDI 16
5. Investment Cases 17
Tourism & Leisure

3. Global tourism market overview
Industry Overview
Global tourism market overview
The World Travel & Tourism Council (WTTC) reported that travel and tourism industries made a direct contribution of USD 2.2 trillion, up 3.1% YoY, to the global GDP and directly supported 101 million jobs in 2013.
Number of inbound international tourists by year
receipts
Source: Financial Supervisory Service (FSS), as of December 2014

4. Average sales per tourism company
Industry Overview
Business status of the industry in 2013 $
Number of
Enterprises
Revenues
KRW 23.29
Trillion
Total
Total
18,441
Average sales per tourism company
Travel services
11,722
KRW 12.63
Billion
Dominant
business type

5. Revenues of companies in 2013
Industry Overview
Revenues of companies in 2013
(Unit: KRW mn, %)
Source: Basic Statistics of Tourism Businesses (Ministry of Culture, Sports and Tourism, October 2014)

6. Number of companies in 2013 Industry Overview
The number of tourism business enterprises declined by 2.6% YoY in 2013.
(Unit: No. of businesses, %)
Source: Basic Statistics of Tourism Businesses (Ministry of Culture, Sports and Tourism, October 2014)

7. Number of inbound international tourists by year
Industry Overview
Inbound Korean travelers in 2013
Number of inbound international tourists by year
Source: Tourism Knowledge & Information System (

8. $ 12.18 Overview of inbound tourists in 2013 Seoul mn people
Industry Overview
Overview of inbound tourists in 2013
Tourism receipts
USD 14,525
million $
12.18
mn people
↑ 52.5%
↓ 21.9%
Most visited area
Seoul 8

9. Key reasons when choosing Korea as a travel destination
Industry Overview
Inbound Korean travelers in 2013
Key reasons when choosing Korea as a travel destination
Shopping
61.0%
Culinary & gourmet
41.3%
Natural scenery
39.0%
Resort & leisure
18.0%
Source: Tourism Knowledge & Information System (

10. Domestic trips by Koreans
Industry Overview
Inbound Korean travelers in 2013
Domestic trips by Koreans
Unit: No. of people, No. of people/days)
Source: Tourism Knowledge & Information System (

11. Status of Korea’s Emerging Tourism Industry
Overview of tourist hotels
The average
occupancy rate
of tourists
63.2%
HOTEL
740 hotels
79,441
rooms

12. Status of Korea’s Emerging Tourism Industry
Outlook for supply and demand of hotels
According to an analysis of hotel demand and supply in Seoul, the daily demand for hotel rooms is estimated at 41,301 in 2017, outpacing the daily supply of 33,864 rooms and leading to a shortage of 7,437 rooms.
Analysis of hotel room demand and supply in Seoul
(Unit: No. of rooms)
Demand & Supply
2014
2015
2016
2017
Demand (a)
31,205
34,212
37,561
41,301
Supply (b)
27,129
29,659
31,362
33,864
Supply- Demand (b-a)
△4,076
△4,553
△6,199
△7,437
Source: Demand and Supply Analysis of Tourist Hotels (Korea Culture & Tourism Institute, 2014)

13. Status of Korea’s Emerging Tourism Industry
Outlook for supply and demand of hotels
The demand and supply analysis shows that the daily demand for hotel rooms on Jeju Island should amount to 16,106 in 2017, outpacing the daily supply of 12,904 rooms and leading to a shortage of 3,203 rooms.
Analysis of hotel room demand & supply in Jeju
(Unit: No. of rooms)
Demand & Supply
2014
2015
2016
2017
Demand (a)
13,195
14,094
15,063
16,106
Supply (b)
10,115
12,208
12,496
12,904
Supply- Demand (b-a)
△3,079
△1,886
△2,567
△3,203
Source: Demand and Supply Analysis of Tourist Hotels (Korea Culture & Tourism Institute, 2014)

14. Government Policies
The government…
Conducted a survey to resolve tourist inconveniences and promote the tourism industry.
Is coming up with ways to support the establishment of tourism complexes.
Is developing competitive tourism content and programs and enhancing the market readiness of the tourism sector .
Supported the creation of the medical tourism hotel segment and the small hotel segment as sub-categories of the hotel business.

15. 11 countries in Southeast Asia
Government Policies
Improving the visa system
Country
Details
China
Multiple entry visa-related eligibility to include the spouses and underage children of Chinese nationals who already hold a multi-entry visa
Students at leading Chinese universities
Chinese residents in Beijing and Shanghai and those who own timeshares in condominium resorts
11 countries in Southeast Asia
The Korean government eased multiple entry visa requirements and extended the visa validity.
Russia
Marking the Korea-Russia Mutual Visit Year, Korea and Russia entered into an agreement on mutual visa-free travel for 60 days starting in January of 2014.

16. Status of Foreign Direct Investment
In 2013, foreign direct investment in tourism-related industries broke down to USD 916 million  in accommodations (23 cases), USD 21 million in food and beverage (104 cases) and USD 24 million in recreational sports (16 cases).
Tourism-related FDI in 2013
 Industry
No. of cases
Amount
(USD 1,000) 
Accommodations 23
916,421
Food and beverage
104
20,714
Recreational sports 16
23,635
Source: Ministry of Trade, Industry & Energy (

17. East-Busan Tourism Complex
Investment Case
East-Busan Tourism Complex
Location:
Daebyeon-ri, Gijang-eup, Gijang-gun, Busan Metropolitan City
Project period:
Total project cost:
KRW 4 trillion (Private investment: KRW 2.8 trillion)
Project owner: BMC Corp.

18. Unyeo Tourism Complex in Anmyeon Island
Investment cases
Unyeo Tourism Complex in Anmyeon Island
Location:
Nudong-ri and Janggok-ri, Gonam-myeon, Jungjang-ri, Anmyeon-eup, Taean-gun, South Chungcheong Province
Project period:
Total project cost: KRW 73.7 billion
Project owner:
South Chungcheong Development

19. Southwest Coast Tourism & Leisure City
Investment Cases
Southwest Coast Tourism & Leisure City
Guseong District
Location:
Guseong-ri, Sanggong-ri, Deoksong-ri, Sani-myeon, Haenam-gun, South Jeolla Province
Project period:
Total project cost: KRW 4.68 trillion
Project owner:
Southwest Coast Enterprise City Development Co.

20. facebook.com/investkorea
@investinkorea
facebook.com/investkorea