Millions of Chinese come to the island each year, and they represent the lion’s share of all international arrivals on the island, and a significant portion of overall arrivals. Critics say, however, that many come on quote/unquote “cheap” package tours that do little to boost the local economy. Tourism organizations are now working on changing that, and developing the island into a high-end destination. Mike Balfour reports.


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Chinese accounted for 90% of Jeju’s international visitors in 2015

There were 2.6 million international visitors to Jeju last year.

90 percent or 2.33 million were Chinese.

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Many Chinese come on low-cost tours

Chinese tourists dominate the island's international tourism market.

But this phenomenon is causing headaches in Jeju.

Most of the Chinese visitors come to Jeju on cheap tour packages.

Local travel agencies pay a commission per tourist to Chinese travel agencies located in China.

To generate profits, local travel agencies take Chinese group tourists to duty free shops.

After duty free shopping, local travel agencies receive a certain ratio of the sales as commission from the duty free shops.


This has lead to comments on Chinese web portals about the practice in Jeju that forces tourists to buy goods.


These are the resultant realities from the island having pursued a lower-end tourism market.

INTERVIEW
O Chang-hyeon / Jeju Tourism Organization
Local shopping malls, hotels, and travel agencies have formed a cartel. Tourism profits and commissions are flowing out of the island. This reflects on Jeju’s competitiveness as a destination. Visitors are unsatisfied with their trips here and don’t want to return.
< 오창현 / 제주관광공사 관광산업처장 >
쇼핑센터나 호텔 등으로 이어진 카르텔 구성으로 인해 관광수익, 수수료가 역외 유출되는 문제점이 있습니다. 만족도나 재방문이 감소해서 관광산업 전반의 경쟁력이 떨어지는 원인이 되고...

The province and relevant organizations including the Jeju Tourism Organization and the Jeju Tourism Association have resolved to address issues caused by cheap tourism and improve tourism quality.


The province is seeking legislation to control cheap group tour packages.

Organizations are encouraging travel agencies to design and sell high-end tour packages and they will cooperate in preventing Chinese travel agencies from selling low quality programs and asking for commission from local agencies.


INTERVIEW
Lee Seung-chan / Provincial government representative
We believe that the island should reform its tourism business structure and pursue a high-end-tourist-destination model because cheap tourism doesn't contribute to the economic growth of local businesses.
< 이승찬 / 제주특별자치도 관광국장 >
아무리 관광객이 많아도 관광 소득과 직결되지 않기 때문에 저가 관광은 없애고 관광이 질적으로 향상될 수 있도록 관광 체질이 개선돼야 할 것으로 생각하고 있습니다.

The Jeju Tourism Organization is focusing on attracting more independent tourists rather than group tourists.

The Jeju Tourism Association has set up a special council to prevent commission practices at duty free shops and the monopoly of Chinese businesses.

INTERVIEW
Yang Seung-pil / Jeju Tourism Association
We will look for good tour packages that don’t include commissions from local travel agencies. The JTA will help sell them and offer other support.
< 양승필 / 제주도관광협회 해외마케팅실장 >
도내에 있는 업체를 대상으로 우수여행 상품을 공모로 선정하고 그 업체에 대해서 면세점이나 쇼핑 수수료에서 나오는 인센티브로 특별마케팅 지원 체계를 구축할 계획입니다.

[REPORTER] Mike Balfour
[CAMERA] Moon Ho-seong

As the province and local organizations decide on how to eradicate cheap tour programs, tourism insiders look forward to the results.

Mike Balfour KCTV