The tourism industry is voicing strong opposition to the government's proposed reforms to casino regulations. On August 3, 12 organizations representing various sectors of the tourism industry, including casinos, hotels, travel, MICE (Meetings, Incentives, Conventions, and Exhibitions), and theme parks, issued a joint statement condemning the introduction of a five-year renewal system for casino licenses and plans to increase the burden rate for the Tourism Promotion Development Fund. They labeled these measures as "excessive regulations that will dampen investment and competitiveness in the tourism sector" and called for their immediate withdrawal.
Among the organizations involved are the Korea Casino Tourism Association, the Korea Tourism Association, the Korea Hotel Association, the Korea Travel Association, the Korea MICE Association, the Korea Theme Park Association, the Korea Resort Condominium Management Association, the Korea PCO Association, the Korea Tourism Cruise Association, the Korea Camping Association, the Seoul Tourism Association, and the Korea Hotel Management Association. They released a joint statement titled "Call for Withdrawal of Casino Renewal License System and Increase in Tourism Promotion Development Fund Burden Rate that Hinders Domestic Tourism Industry Development."
The industry argues that the government's proposed measures, including the introduction of a five-year renewal system for casino operating licenses and an increase in the burden rate for the Tourism Promotion Development Fund from 10% to 15%, could worsen investment conditions in the tourism sector and diminish national competitiveness. They warn that adding regulations to an industry that is still recovering from the impacts of COVID-19 could stifle large-scale investments and job creation, weakening the overall growth momentum of the sector.
Furthermore, the tourism industry points out that the current structure requires casino operators to pay the Tourism Promotion Development Fund based on revenue rather than net profit. This means that even operators recording losses would still bear the burden of the fund. An increase in the burden rate could further exacerbate the financial strain on these businesses.
The introduction of a five-year renewal system is particularly concerning for the industry, as the nature of integrated resort projects typically involves investments ranging from hundreds of billions to trillions of won. They fear that this could undermine investment stability and deter new investments and foreign capital, potentially shaking the foundation of the tourism industry centered around integrated resorts.
The industry also argues that while neighboring countries like Macau, Singapore, the Philippines, and Japan are fostering their integrated resort industries through regulatory relaxation and increased investment, strengthening regulations domestically could weaken the country's tourism competitiveness.
In their joint statement, the tourism industry called on the government to reconsider the proposed five-year renewal system for casinos, review the increase in the burden rate for the Tourism Promotion Development Fund, and shift policies to promote growth and investment in the tourism sector.
* This article has been translated by AI.
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