SEOUL, August 27 (AJP) - South Korea will expand a half-price travel subsidy program to nine more rural areas this fall after a first-half rollout boosted local spending, the Ministry of Culture, Sports and Tourism said Thursday.
The program, aimed at rural areas facing population decline, refunds half of a visitor's travel expenses through mobile local gift certificates, up to 100,000 won ($72) per person and 140,000 won for young travelers.
It launched in April across 16 areas, including Pyeongchang, Yeongwol and Hoengseong in Gangwon Province, Jecheon in North Chungcheong Province, Gochang in North Jeolla Province and several counties in South Jeolla and South Gyeongsang provinces.
An assessment commissioned by the ministry and the Korea Tourism Organization found that the program generated at least 16.2 billion won ($11.7 million) in local spending through June, compared with 5.2 billion won in refunds.
That amounts to local spending of more than three times the refund amount.
Food and beverage accounted for 45.5 percent of spending, followed by accommodation at 32.2 percent, shopping and local products at 10.2 percent and tourism activities at 6.3 percent.
Roughly three-quarters of users, or 76.4 percent, said they spent more than planned because they expected a refund.
The ministry said the subsidy also created new travel demand.
Among users, 31.2 percent said they took a trip they had not originally planned, while 50 percent said they switched their destination to a participating area.
Building on those results, the ministry and the tourism organization selected nine new areas to join the program from late August: Hwacheon in Gangwon Province, Goseong, Sancheong and Hamyang in South Gyeongsang Province; Andong and Yeongcheon in North Gyeongsang Province; Seocheon and Taean in South Chungcheong Province; and Jangheung in South Jeolla Province.
Some of the original 16 areas, including Miryang, Geochang, Wando and Yeonggwang, secured additional funding to keep the program running in the second half.
"The half-price travel program eases the cost burden on travelers and helps bring new visitors to areas facing population decline," Kang Jung-won, the ministry's tourism policy director, said in a statement.
Details on the program are available on the Visit Korea website, and applications are handled through each participating local government's website.
AJP Takeaways
· Korea will add nine rural areas to its half-price travel subsidy program this fall.
· The program refunds half of travel expenses through mobile local gift certificates.
· Refunds are capped at 100,000 won per person and 140,000 won for young travelers.
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