An increasing number of Chinese tourists are visiting the island, but only China-based travel agencies operating here are making significant income from them. The Jeju Provincial Travel Association says it founded the J-Trip travel agency to compete, but critics question the use of foreign funds in the new endeavor. Here’s Mike Balfour with more on the controversy.
Report

The number of Chinese tourists visiting the island is growing.

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Chinese travel agencies corner market in Jeju tourism

However, most of them buy tourism services from Chinese travel agencies.

There are currently 40 locally registered Chinese travel agencies operating in Jeju. They bring 90 percent of Chinese tourists who visit the island.

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Provincial tourism association founds J-Trip

Chinese firms have opened hotels and restaurants on the island, which puts additional pressure on local industry.

To help island firms that are facing Chinese penetration into local markets, the Jeju Provincial Tourism Association has founded a large, joint member travel agency, called J-Trip.

5 billion won will be pooled for the foundation.

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Chinese and Taiwanese funds invested in J-Trip

The JPTA held a meeting for initial investors on December 30th. 80 local travel agencies have expressed the intention of investing in the joint business.

JPTA puts a 500 million won cap for individual investors.

However, it's controversial that Chinese and Taiwanese money is also involved. The funds account for about 10 percent of total startup.

This has sparked strong opposition from local business.

INTERVIEW
J-Trip investor
The Chinese and Taiwanese investors have become stockholders of J-Trip. It's unacceptable. I don't understand why the JPTA accepted their money.
제이트립 출자 회원사
"주식회사 주주인 거죠. 이해가 안 되는 거예요. 저도 이해가 도저히 안 되는데..."

However, the JPTA says that the non-Korean shareholders qualify for the investment and that they cannot control management of the joint firm.

INTERVIEW
JPTA representative
The foreign investors are also members of the JPTA and they hold just 10% of the shares. Meanwhile, the JPTA has over 30%. To prevent an investor from controlling the whole firm, we’ve limited the amount of investment to 500 million won.
제주도관광협회 관계자
"10%로 무엇을 하겠나. 협회가 30% 이상 지분을 갖고 있고 다 회원사인데 큰 문제는 없을 거예요. 우리 회원사 중에 중국 자본이 들어온다고//
**수퍼체인지**
해도... 그래서 5억까지 제한을 둔 거고..."

[camera]
Kim Yong-min

The JPTA officially launched J-Trip on Tuesday.

[reporter]
Mike Balfour

J-Trip's foundation has started off with an uncertain purpose.

Mike Balfour KCTV