By Diplomacy Journal Lee Jon-young

The central government and some local governments are expanding visa-free entry for Chinese tourists and even offering subsidies funded by taxes to attract more Chinese tourists. While citing the recovery of the tourism industry post-COVID-19 as justification, this amounts to nothing more than reckless gambling using local finances as collateral.

China has long been central to Korea's tourism market, and visa-free expansion could temporarily inject vitality into aviation, lodging, and food services. However, increased tourist numbers do not automatically translate into improved regional economic health.

Jeju Island has already provided a painful lesson. While tourist numbers rose, the consequences were a surge in illegal residents, various incidents and accidents, and community conflicts. The side effects following short-term gains are by no means trivial.

The structural problems within Korea's tourism industry are even more severe. In some areas, overpricing remains rampant, and attractions and experiences are lacking. Tourists spend money but leave dissatisfied, failing to gain memorable experiences.

In this situation, using tax money to attract tourists is ultimately a “policy that wastes money.” Even if it briefly attracts visitors, the repeat visit rate drops, and Korean tourism risks becoming nothing more than a cheap group tour destination.

The per-tourist subsidies offered by some local governments further exacerbate the problem. Tourism should fundamentally compete on content and competitiveness. However, the practice of ‘buying’ tourists with tax money only creates an illusion, trapping the industry in a subsidy-dependent structure. This risks distorting the tourism ecosystem long-term and severely damaging the nation's image.

Tourism is not merely about population influx; it is an industry for creating sustainable value. We must now shift focus from quantitative expansion to qualitative growth. Strengthening public safety and stay management, developing high-value-added content linked to local culture, and systematically expanding infrastructure are essential. Otherwise, Korean tourism will remain a disposable commodity for low-cost group tours.

Expanding visa-free entry for Chinese tourists and engaging in subsidy wars are dangerous choices driven by short-term temptation. The risks borne by the government and local authorities will snowball. The true growth of the tourism industry hinges not on numbers, but on satisfaction and qualitative value; not on short-term gains, but on sustainable competitiveness.

The current approach is not tourism policy but reckless provocation. To safeguard the future of Korean tourism, this “path to ruin by spending money” must be halted immediately, and a fundamental strategic shift must be undertaken.