Jeju province injected an emergency tourism fund to counter a sharp drop in domestic tourists following a surge in flight fuel surcharges [1].
The move comes as the island's economy struggles with reduced accessibility. Because Jeju relies heavily on air travel, sudden price hikes for domestic flights directly impact visitor numbers and local business revenue.
According to officials, domestic-flight fuel surcharges increased more than fourfold within a single month [1]. This price spike led to a reduction in available flight seats and a subsequent drop in domestic visitors. During the Labor Day holiday period from May 1 to May 5, 2024, the number of domestic tourists fell approximately nine percent compared with the previous year [1].
Governor Oh Young-hoon announced the financial intervention to stabilize the market. The total emergency injection is reported as 31.5 billion KRW, consisting of 28.5 billion KRW from the tourism promotion fund, and three billion KRW from Tamnarae operation profits [1]. Other reports have cited the total as 31 billion KRW [2].
Oh said the funds would serve as a priming water role to maintain tourism demand and drive recovery [1].
While the province provides immediate financial relief, some officials argue that the root cause is a systemic issue with air travel costs. Kang Dong-hoon, head of the Jeju Tourism Association, suggested that the province might need to organize a province-wide signature campaign to prompt the national government to address aviation accessibility [1].
Kang said he hopes the government can resolve the issue of air accessibility at a national level [1].
“Domestic-flight fuel surcharges increased more than fourfold within a single month.”
The emergency funding highlights the vulnerability of island-based tourism to volatile energy costs and airline pricing. By utilizing a 'priming water' strategy, Jeju is attempting to artificially sustain demand, but the call for national government intervention suggests that local subsidies may not be sufficient to offset long-term structural increases in travel costs.
