Jeju tourism authorities have introduced cash-equivalent support cards to attract visitors following a slowdown in tourism growth [1].
This initiative comes as the island faces a decline in travel sentiment. The move highlights the vulnerability of regional tourism to external economic shocks and corporate consolidation in the aviation sector.
Data indicates that 1.21 million tourists visited Jeju last month [1], marking a 9.8% increase compared to the previous year [1]. While the number of visitors is still growing, the rate of growth has slowed significantly. In January 2024, the monthly increase was 14.1% [1], and in February 2024, it reached 19.6% [1]. Recent growth has since dropped to the 9% range [1].
Analysts suggest several factors are contributing to this cooling trend. Rising fuel prices have led to a sharp increase in airfare, which has discouraged potential travelers [1]. Additionally, the merger between Korean Air and Asiana Airlines has reduced the total number of available seats on routes to Jeju [1].
"High fuel prices have caused airfares to rise steeply, shrinking travel sentiment, and the merger between Korean Air and Asiana Airlines has reduced the supply of seats on Jeju routes," Kim Ji-woo of YTN said [1].
Despite the introduction of the travel support cards, some critics have raised concerns regarding the actual effectiveness of these cash subsidies. The debate centers on whether short-term financial incentives can offset the structural issues of reduced flight capacity, and high transportation costs.
“Jeju tourism authorities have introduced cash-equivalent support cards to attract visitors”
The shift from double-digit growth to single-digit growth in Jeju's tourism suggests that monetary incentives may be insufficient to counter systemic travel barriers. If airline mergers continue to limit seat inventory and fuel costs remain volatile, the island may need to diversify its transport infrastructure or target different demographics to maintain its economic stability.
