South Korea Government Launches New Accommodation Discounts to Surge Domestic Travel and Support Disaster-Affected Regions – Travel And Tour World

The South Korean government, through the Ministry of Culture, Sports, and Tourism, in collaboration with the Korea Tourism Organization, introduced a large-scale initiative aimed at revitalizing the domestic tourism sector. This initiative, launched under the “2025 Korea Summer Accommodation Sale Festa,” was designed to encourage travel within South Korea, especially to regions that were hit by unforeseen disasters, such as wildfires and the tragic plane crash in December 2024.

This move was expected to not only stimulate domestic travel and support the local economy but also provide an economic boost to tourism destinations that had struggled due to natural disasters. With significant accommodation discounts, particularly in less-visited regions, the government aimed to ensure a robust tourism season ahead of the summer holiday rush.

Global and Regional Effects on Travelers

The initiative to offer large discounts on accommodations was expected to have significant effects both domestically and internationally. For travelers within South Korea, the discount coupons would make it more affordable to explore regions outside the usual tourist hubs, encouraging a more even distribution of visitors and preventing overcrowding in major cities like Seoul and Busan. This also aligned with a growing trend towards “slow tourism,” where visitors seek more authentic, local experiences away from crowded urban centers.

From a global perspective, South Korea’s efforts could serve as a model for other nations experiencing similar post-pandemic recovery phases. By focusing on boosting domestic travel through government-backed incentives, other countries with rich cultural heritages and tourism sectors in need of recovery could replicate this model, encouraging both international and local tourism.

Overview of the Accommodation Discounts

The discounts offered were extensive, with the government releasing 400,000 accommodation discount coupons, each targeting different regions in South Korea. These coupons were divided into three categories:

1. Special Regional Edition: This category targeted regions that were not typically the first choices for tourists but held rich cultural or natural value. The government wanted to draw tourists to areas such as Gangwon, South Gyeongsang, and Jeju by offering a 50,000-won discount for bookings priced at 70,000 won ($50.50) or more. The campaign for these discounts began with a coupon release from May 28 to May 30.
2. Standard Edition: This edition was more widely applicable and included a discount of 30,000 won for bookings over 70,000 won, and 20,000 won for bookings between 20,000 and 70,000 won. The Standard Edition coupon release was scheduled for June 2 to July 17.
3. Special Disaster Area Edition: The third category, aimed at revitalizing areas affected by recent disasters such as wildfires and the Muan plane crash, offered a discount for visitors to regions like Sancheong, Hadong, and Muan. In this case, tourists could get a 50,000-won discount for bookings over 70,000 won, and a 30,000-won discount for bookings below this threshold. The coupon release for this edition was set to run from June 18 to July 17, 2025.

How This Will Impact the Travel Industry

This initiative was expected to provide multiple benefits for the South Korean travel industry:

• Regional Economic Boost: By targeting secondary cities and disaster-affected areas, the government aimed to inject fresh capital into local economies, diversifying the typical tourist spending patterns.
• Hotel and Resort Impact: The accommodation providers in Korea, including hotels, resorts, and pensions, were likely to see an influx of visitors during the summer months. The promotion could help them recover from previous downturns, particularly after the economic disruptions caused by global crises and local disasters.
• Tourism Professional Opportunities: Travel agencies, destination management companies (DMCs), and online travel agencies (OTAs) could see increased bookings, especially in regions that typically do not receive large numbers of foreign visitors. With the introduction of these campaigns, new product offerings and regional packages may emerge, benefiting local operators and service providers.
• Boost to Cultural Tourism: Destinations such as Wuyi Mountain in Gangwon, famous for its tea-making workshops, and Chengdu in South Gyeongsang, known for its face-changing performances, were expected to see higher foreign visitor interest. The government’s support for these cultural activities through travel incentives would stimulate the local economy and support cultural heritage conservation.

Timeline for Coupon Distribution and Usage

The coupons were expected to be available through online travel agencies starting at 10:00 AM on May 28, 2025. However, these discounts would be distributed on a first-come, first-served basis, with a single coupon available per person. The government emphasized the importance of booking and paying for the accommodation within a designated period — from 10 AM to 7 AM the following day — to ensure validity.

If a coupon was not used within the required period due to cancellations or other reasons, it would be voided, and a new coupon could be issued starting at 10:00 AM the following day. This system was designed to maintain fairness and prevent abuse while ensuring that as many people as possible could benefit from the discounts.

Tax Refund Measures to Encourage Spending

In an effort to further stimulate domestic tourism spending, South Korea introduced several tax refund measures. Tourists who participated in the accommodation promotion would also benefit from on-the-spot departure tax refunds. This system made the travel experience more rewarding by reducing the financial burden on tourists and encouraging them to spend more.

The government also reduced the minimum purchase requirement to qualify for tax refunds and increased the cash refund limit. In addition, high-tech products such as smartphones, smartwatches, and drones were included in the list of eligible refundable goods. This move was intended to attract more tech-savvy travelers and those interested in shopping for cutting-edge products.

Collaborative Efforts to Promote Tourism

The South Korean government’s efforts to promote tourism were not only limited to the accommodation discounts but also focused on improving the overall tourism experience. This included enhancing payment systems, improving transportation networks, and offering more diverse accommodation options for various types of travelers. The Ministry of Culture and Tourism also planned to tailor tourism services for specific visitor segments, such as business travelers, solo travelers, families, and seniors, ensuring that all visitors would have access to convenient, high-quality services during their stay.

The cooperation between various government bodies, local tourism boards, and businesses was key to ensuring that the program would run smoothly and that all participants, from accommodation providers to tourists, would benefit from these reforms.

Future Outlook and Long-Term Benefits for Tourism

Looking forward, this initiative represented a broader effort by South Korea to recover from the economic disruptions caused by the COVID-19 pandemic, natural disasters, and global political challenges. The focus on boosting domestic travel through incentives and providing a more welcoming environment for international tourists was likely to have long-lasting effects on South Korea’s tourism industry.

The emphasis on regional tourism, the revitalization of areas impacted by natural disasters, and the introduction of tax refund measures could set a precedent for other nations seeking to rejuvenate their tourism industries in the post-pandemic world. This approach, which balanced economic incentives with cultural preservation, might serve as a model for other countries facing similar challenges.

• South Korea introduced large-scale accommodation discounts to promote domestic travel, particularly to regions impacted by natural disasters.
• The government issued 400,000 coupons for discounted stays in hotels, resorts, and pensions.
• The initiative aimed to support local economies, including second-tier cities and areas affected by wildfires.
• New tax refund measures were introduced to incentivize higher spending among tourists.
• The campaign targeted younger travelers, solo travelers, and business travelers, offering customized services.
• The program’s success could offer insights for other nations aiming to revive their tourism sectors.