Small tourist attractions to receive tax breaks, lower rent

Home > National > Politics

Small tourist attractions to receive tax breaks, lower rent

Published: 27 Sep. 2024, 15:17

Culture Minister Yu In-chon speaks during a meeting at the government complex in Jongno District, central Seoul, on Wednesday. [NEWS1]

The Korean government will grant benefits to additional tourist attractions in areas with declining populations under amendments to the Tourism Promotion Act the National Assembly passed Thursday.

Sites that are designated as tourism complexes in depopulating areas currently receive exemptions from development levies, reduced acquisition taxes, lower rents for shared properties and loan support from the Tourism Promotion and Development Fund. Attractions must be at least 500,000 square meters (123 acres) in size to receive such benefits under current regulations. The new amendment, however, allows facilities between 50,000 and 300,000 square meters in depopulating areas to qualify.

The legislation aims to revitalize tourism in underserved regions and enable the development of attractions within a shorter time frame, according to the Ministry of Culture, Sports and Tourism. It also simplifies the designation criteria for small tourism complexes, grants regional governments the ability to set standards for nearby tourism facilities and establishes a legal framework for travel agencies focused on attraction group tourists from overseas.

Properties classified as public convenience facilities — such as public restrooms — and tourist accommodations — such as hotels and hostels — can qualify as tourism complexes.

The Act also empowers cities and provinces to set their own facility requirements — such as public convenience facilities, tourist information centers and accommodation options — based on nearby tourism conditions, rather than adhering to uniform standards set by the Culture Ministry.

The amendments will take effect one year after promulgation. The existing 35 tourist zones in 14 cities and provinces must enact ordinances before the law takes effect. Regional governments wishing to establish new tourism zones after the amendment is enacted will need to create facility standards within their ordinances beforehand.

The amendments also laid the groundwork for the ministry to designate non-Korean tourist companies who meet certain criteria as “dedicated travel agencies,” which would help travelers identify high-quality tour operations.

Following the reopening of China’s group tourism market after a six-and-a-half-year hiatus, the share of group tourists among total Chinese arrivals rose significantly from 5.5 percent, or 1.76 million, in 2023 to 24 percent, or 2.22 million, in the first half of 2024.

The Culture Ministry has intensified its investigations into, and crackdown on, disruptive practices such as forced shopping and anticipates that the new amendments will further help to stamp out such practices in the travel industry and pave the way for a high-quality group tourism market.

“With this amendment to the Tourism Promotion Act, we aim to enhance regional tourism and foster a high-quality outbound group tourism market, including revitalizing tourism industry investments in depopulated areas facing the risk of disappearance,” said Culture Minister Yu In-chon.

BY WOO JI-WON [woo.jiwon@joongang.co.kr]