The 'half-price travel' program, which refunds half of travel expenses, is driving local spending. In the first half of this year, the government refunded 5.2 billion won to travelers, who in turn spent at least 16.2 billion won in local areas, exceeding three times the refund amount. More than half of the participants visited regions they had not been to before.
On August 27, the Ministry of Culture, Sports and Tourism announced the addition of nine new regions to the 'Local Love Vacation Support' program, which is being implemented in partnership with the Korea Tourism Organization.
The newly included areas are Hwacheon County in Gangwon, Goseong, Sancheong, and Hamyang Counties in Gyeongnam, Andong and Yeongcheon Cities in Gyeongbuk, Seocheon and Taean Counties in Chungnam, and Jangheung County in Jeonnam. These regions will begin the program sequentially starting at the end of this month.
The 'half-price travel' initiative allows travelers to receive half of their spending back in mobile local love gift certificates when visiting rural areas experiencing population decline. Individuals can receive up to 100,000 won, while young people can receive up to 140,000 won. The program began in April across 16 regions. The ministry previously introduced this initiative to support tourism and consumption in areas facing population decline.
The results for the first half of the year have also been released. An analysis by the ministry and the tourism organization of usage data and survey results from the 16 regions revealed that by June, 5.2 billion won was spent on refunds, generating at least 16.2 billion won in local consumption. This means that for every won refunded, over 3.1 won was spent in the local economy.
The funds were primarily circulated in restaurants and accommodations. Food and beverage accounted for 45.5% of total spending, followed by lodging at 32.2%, shopping and local specialties at 10.2%, and tourism and experiences at 6.3%. About 76.4% of users reported that the refund incentive led them to increase their spending beyond their original plans.
Notably, the program also influenced travel destinations. Approximately 31.2% of respondents took trips they had not originally planned due to the half-price travel offer, and 50.0% changed their destination to one of the program's participating areas.
Furthermore, 56.3% of respondents indicated that it was their first visit to the area. This suggests that the program not only provided discounts on pre-planned trips but also attracted new visitors.
In June, the ministry discussed the direction of the program for the second half of the year with local governments based on the first half's performance.
Some of the regions that participated in the first half will continue the half-price travel program into the fall. Cities such as Miryang, Geochang, Wando, and Yeonggwang plan to allocate additional budgets to sustain the program in the second half.
Details on the operational periods and application methods for each region can be found on the 'Korea's Hidden Gems' website. Actual applications will be accepted through the websites of local governments.
“The half-price travel program alleviates the financial burden of travel for citizens while effectively creating new visitors and residents in areas facing population decline,” said Kang Jeong-won, head of the Ministry of Culture, Sports and Tourism's Tourism Policy Division. “We will work closely with local governments to ensure the enthusiastic response from citizens observed in the first half continues into the fall.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.