Transcript 1 - itop forum

The 17th ITOP Forum
Keynote Speech
Woo Keun-Min
Governor
Jeju Special Self-Governing Province
The 17th ITOP Forum
Keynote Speech
Performance and Priorities of Jeju-Style
Tourism Policy Model
Honorable Members of the ITOP
Forum.
My name is Woo, Keun Min, and
I am the Governor of Jeju
Special Self-Governing Province
in Korea.
- Focused on the policy goal of attracting
2 million foreign visitors to Jeju -
According to the UNWTO (United Nations
Tourism
Organization)
and
the
WTTC
(World Travel & Tourism Council), there
were close to one billion international
tourists in 2012 worldwide,
who spent a total of 1.075 trillion dollars.
The tourism industry represents 9% of the
world GDP and 30% of service exports, and
creates one out of every 11 jobs. In other
words, the tourism industry is rising as a
key business.
With the number of international tourists
expected to reach 1.8 billion in 2030, 30%
of these are in the Asia-Pacific region, and
an
onshore
market
has
continued
to
develop. Notably, the China market had
outbound tourism expenditures of 102
billion dollars last year and was ranked
number one in the world. The growth of
the China market is amazing.
The number of foreign visitors to Korea
has sharply increased. After surpassing 1
million in 1978, the annual number of
foreign visitors to Korea reached 2 million
in 1988 and 5 million in 2000.
Last year, Korea's tourism industry had
11 million foreign visitors and tourism
revenue of 14.2 billion dollars. Korea's
tourism industry has been growing as the
world's 23rd largest tourist destination
country.
In Korea, the Park Geun-hye Government
is deeply aware of the importance of the
tourism
industry,
and
has
developed
tourism into one of Korea's key industries.
This attempt by the Korean government
results from the fact that the Korean
tourism
industry's
rate
of
foreign
exchange earning is 88%; in other words,
it is greater than the 71% held by
automobiles, the 52% held by mobiles,
and the 43% held by semiconductors, and
it produces five times the job creation
effects of the IT industry.
The Jeju region had tourism revenue of
about 5.53 trillion dollars in 2012, which is
about
50%
of
GRDP(Gross
Regional
Domestic Product). Allowing for allied
service industries, the tourism industry
forms 78% of local businesses.
In that sense, at this forum, which is
focused by the two key words of “Island”
and "Tourism," I would like to talk to you
about a 'Jeju-style Tourism Policy,' focused
on my election pledge to attract 2 million
foreign visitors to Jeju by 2014 when I
was running for Jeju governor in 2010,
and the major strategies, outcomes and
related tasks.
The plan to attract 2 million foreign
visitors to Jeju is part of an overall goal of
the people of Jeju to develop Jeju into a
competitive free international city, by
changing the paradigm of Jeju tourism
from one of quantitative growth to one of
qualitative growth.
It also involves the Jeju government's
intention to contribute to the activation
of Jeju's local economy by attracting
foreign visitors, who create 3~6 times
the added value of domestic visitors.
In 2009, out of the total of 6,520,000
visitors to Jeju, only 630,000 were foreign
visitors, which is less than 10% of the
total. Jeju intends to develop from a
domestic
tourist
attraction
international tourist destination.
into
an
In addition, the Jeju government expects
to create synergies that will trigger the
activation
of
the
primary
industry,
investment and exports through realizing
economies of scale.
To realize this plan, we recognized that it
is very important to obtain international
brand power and high-impact contents,
and we put these on our list of priorities.
These
efforts
resulted
in
Jeju
being
included in the list of the New Seven
Wonders
of
Nature
with
international tourist attractions
other
such as Halong Bay in Vietnam, Komodo
Island in Indonesia and the underground
river in the Philippines, highlighting the
UNESCO
UNESCO
triple
crown
Biosphere
of
Jeju
(2002
Reserves,
2007
UNESCO World Heritage, 2010 UNESCO
Geo-park).
Then, CNN reported this June that Jeju
was the best vacation spot in Asia, rivaling
Phuket in Thailand.
Also,
in
December
2010,
Jeju
was
selected by Global Times in China as one
of the world's top three island tourist
destinations,
Maldives.
along
with
Hawaii
and
Because of the island's isolation, Jeju has
its own unique culture and diverse forms
of life that are distinct from what is found
on the Korean mainland. But on the other
hand, it is true that accessibility to Jeju has
been an obstacle to the attraction of
tourists.
In
addition,
as
the
inbound
and
outbound traffic were not invigorated
owing to the limitation of the sedentary
population to 600,000 in Jeju, there were
difficulties in operating the direct route
stably
Notably,
as
destination
differentiated
the
in
only
Korea,
and
no-visa
Jeju
prominent
travel
has
a
system
compared to other regions in Korea, but
this system has not been properly utilized
because of the lack of a direct route.
To solve this problem, Jeju's government
has focused on attracting direct flights by
offering substantial incentives, and has
strived to increase the boarding rate and
to stabilize the routes to Jeju through
incentive marketing in departure cities.
As a result, the direct flights to Jeju
were remarkably expanded, to 57 in
2013 from 15 in 2009.
Also, Jeju's government is concentrating
on developing marine routes using cruises,
based on Jeju's geographic advantage as
a strategic point between Korea, China
and Japan.
Cruise visitors to Jeju sharply increased
to 380,000 (187 cruises) this year from
37,000 (36 cruises) in 2009. In fact, it is
not too much to say that Jeju has
become
a
significant
Northeast Asia.
cruise
hub
in
In 2010, Jeju made an outer port to help
the biggest 150,000 ton cruise ships come
alongside the pier. Jeju has strengthened
marketing in each field, such as through
strategic alliances with cruise companies
and the holding of a cruise forum.
This has led to arrangements such as a
contract with 'SAMDASU,' which is the
leader in Korea's mineral water market, to
supply mineral water to cruise ships,
and
Jeju
has
negotiated
similar
arrangements with ship owners to supply
Jeju-produced
products.
agricultural
and
marine
Based on 'Target China,' which was the
strategy
of
the
second
Jeju
Free
International City Master Plan, Jeju has
even
been
carrying
out
targeted
marketing for each major overseas market.
Jeju's government has provided image
advertisements
including
CCTV
commercials, advertising on Shanghai's
tour train, Beijing subway advertising, and
intensive promotion using on and off line
media through China's biggest travel
website 'Ctrip.com.'
Jeju has also promoted the no-visa
wedding package for people planning
large weddings, and a China UnionPay
Card shopping event.
The number of Japanese visitors to Jeju
has recently decreased due to fall of the
Yen and the earthquake aftermath, but
Jeju has continued to promote tourism
through Japan's main media outlets such
as
Tokyo
TV
NEWSPAPERS,
and
THE
MAINICHI
as Japan is a near key market, with 17
million Japanese people taking overseas
trips annually.
For
Japanese
visitors,
Jeju
has
invigorated its green events and products,
such as the Halla Mountain Tracking
Competition
Festival,
and
and
has
Jeju
Olle
developed
Walking
a
food
tourism program with Japanese travel
agents such as JTB to target female
travelers.
As
part
of
diversification,
overseas
Jeju's
tourism
market
government
has
actively strived to develop new markets
such as Southeast Asia.
Jeju has also pursued online publicity
through
Tripadvisor,
overseas
and
blogs
such
as
has
developed
differentiated Jeju-style cultural contents
such as Haenyeo Festival and Jeju Cross,
in addition to advertising in Malaysia's
taxis, in Singapore's Straits Times, and
rent-a-car tour product development.
To secure the local marketing point
overseas, Jeju's government, which first
established the Jeju Tourism Office in
Beijing China in 1999, now has five offices
in Shanghai, Guangzhou, Shenyang and
and Cheng in China, four offices in Tokyo,
Osaka, Nagoya, and Hukuoka in Japan,
and 1 office in Taipei, Taiwan.
Jeju
has
promoted
sustainable
Jeju
tourism marketing based on a close
network with local authorities and the
tourism industry.
By setting the MICE industry for the
strategy field as part of its strategies for
the promotion of the high-value added
tourism
industry,
of
expanding
infrastructures, developing the custommade theme programs and signing the
MOU to invite corporate visitors with big
travel agents such as CITS,
Jeju had 11,200 visitors from Baojian
Group, which was the largest-scale visit in
Jeju tourism history, in September 2011,
and this generated 91.4 billion Won in
revenues for the local economy.
Jeju's government made 'Baojian Street'
in a downtown area in commemoration of
this, and this area has now become one
of the preferred destinations for Chinese
tourists
Tourism Preparedness takes time but is
very important, because it can improve
tourists' satisfaction, which in turn triggers
demand for further visits to Jeju.
Jeju's government set 2013 as a year of
Tourism Preparedness Reform, and has
executed a project called the "Strong
Tourism Jeju Project."
In Jeju, private businesses have selected
33 action plans from 8 fields including
accommodations,
transportation,
food,
tourist attractions, travel agents, tour
guides, airport, harbor. They have also
inspected sites, derived issues and solved
problems by holding a regular meeting.
In
particular,
they
have
carefully
managed the action plans for four contact
points (restaurant, lodging, transportation,
tourist spot). There has been lodging
facility remodeling, and 579 signs written
in foreign languages.
Jeju's government has been interested in
achieving an improvement of hospitality
service by studying the consciousness of
tourism among people in Jeju. Jeju's
government
has
launched
the
Smart
Phone App "ezTalky for Jeju Tour,’ and has
provided education about Jeju's culture
and history to build the capabilities of
tour guide interpreters.
Also, tour guide interpreters are assigned
to
the
airport,
harbor,
tourist
spots,
downtown and traditional markets to
provide tour guide services.
In
addition,
Jeju's
government
has
installed the automation exit system, the
first of its kind, in Jeju International Airport
around Jeju Immigration Office, to simplify
the immigration procedures for foreign
visitors
in
Jeju,
and
the
collaboration
system between the central government
and local authority has been highly praised
for improving tourists' satisfaction.
By pushing this Jeju-style tourism policy
based on an understanding of Jeju's
external environment and surrounding
conditions, and Jeju's value and strengths,
Jeju achieved the goal of attracting 2
million foreign tourists in October 2013
which was one year earlier than original
goal of 2014.
The average annual increase in foreign
visitors in Jeju was 25.3% in the 10 years
from 2003 to 2012, 32.8% in the 5 years
from 2008 to 2012, and 47.1% in the 3
years from 2010 to 2012. This data
indicates that the number of foreign
visitors
to
Jeju
has
been
increasing over the last 3 years.
sharply
Now, I will explain the effects of the
increase in the number of foreign visitors
to Jeju using objective indicators.
According
to
the
Jeju
Development
Institute's analysis of the economic effect
of the attraction of 2 million foreign
tourists to the region, the production-
induced effect and the value addedinduced effect amount to 3,550 billion
Won and 1,850 billion Won, respectively.
In concrete terms, the restaurant and
lodging business has 1,060 billion Won
and 490 billion Won as productioninduced effects and value added-induced
effects, respectively. The wholesale and
retail business has 1,600 billion Won and
640 billion Won as production-induced
effects and value added-induced effects,
respectively.
According to the business forecast, when
there is a 10% increase in foreign visitors,
the annual average GRDP and the annual
average jobs increase by 0.33% and 0.27%,
respectively, and the unemployment rate
decreases
by
0.01%.
This
means
that
attraction of tourists will ultimately lead to
positive
effects
throughout
the
economy, both directly and indirectly.
local
An increase of tourists results in an
increase of tax revenues, so that a
virtuous cycle structure of local economy
activation
will
be
established
economies of scale will be realized.
and
As of 2012, the Jeju government secured
the budget for social service first as the
government to be elected by popular
vote, based on national tax of 620 billion
Won, local tax of 684.1 billion Won, and
the tourism promotion fund of 15.6 billion
Won from Casino revenues and airport
departure taxes.
Compared to other local authorities in
Korea, Jeju has returned revenues to the
people of Jeju in many different forms,
such as finance for free school meals and
support
for
the
accommodation facilities.
expansion
of
According
to
an
analysis
of
the
employment rate nationwide that was
published by the Ministry of Employment
and
Labor
Korea
last
August,
the
employment rate in Jeju region is 70.8%,
which is higher than the nationwide
average of 64.2%. Jeju is ranked as No. 1
in the ranking of regions.
For
example,
about
2,000
staff
are
employed at just 4 duty free shops in Jeju.
The service business including tourism
forms 78% of Jeju's industry. This regional
characteristic
reflected
in
of
Jeju
the
employment rate.
has
analysis
been
well
of
the
According to the data published last
August by the Ministry of Culture, Sports
and Tourism on the occupancy rates for
guest-rooms nationwide, Jeju region has
an average guestroom occupancy rate of
75% for the last 3 years, putting it in the
upper ranks with Seoul and Incheon.
When the guestroom occupancy rate is
greater than 70%, it starts a ripple effect
throughout
business
to
businesses,
the
from
wholesale
laundry
&
retail
business, as a very-stable profit structure.
Such an increase of tourists is a basis for
increasing the local economy's growth
rate. Korea's economic growth rate in
2012
was
2.1%
but
Jeju's
economic
growth rate was 4.0%. That is, Jeju is
expected to have a relatively high growth
rate.
The BOK Regional Economic Report
published last August says that the Jeju
region has seen positive ripple effects
throughout local businesses such as in
production, traditional market sales and
employment, because of the increase in
the number of tourists to Jeju.
These results increase the satisfaction of
Jeju residents. In the analysis of degree of
happiness that was carried out by Korea
local authority research institute last April,
Jeju
region
received
a
favorable
evaluation in the economy part, and had
the nation's second highest degree of
happiness.
While these are good results, it is true
that the tourism industry is dependent on
the
domestic
and
external
market
situation, and is vulnerable to a range of
external threats. For this reason, active
and speedy changes and responses are
needed.
The Inter-Island Tourism Policy Forum is
based
on
promoting
the
joint
development and solidarity of islands with
the
two
"Tourism."
key-words
of
"Island"
and
Accordingly, the question of whether or
not tourism in island regions such as Jeju
can be sustainable depends to a great
degree on how the island has responded
to external factors, including the domestic
and foreign economy, safety, climate and
disease.
We have continuously attempted to
promote
under
including
differentiated
Jeju-style
the
market
tourism
access
policies,
above-mentioned
Jeju
Brand, Contents and Marketing Base, by
actively responding to such threats.
One
such
established
threat
by
is
the
China's
new
Xi
law
Jinping
government, which restricted travel as of
the first day of last October.
Given
countries
that
and
the
competition
businesses
to
among
attract
Chinese tourists is fierce, I think there will
be joy and disappointment in different
countries, regions and businesses.
It is anticipated that Chinese visitors to
Jeju will temporarily drop owing to the
increased price of travel products, but the
Jeju
government
has
developed
new
policies that will change this threat into
an opportunity.
Jeju's government has also prepared the
diverse countermeasures for each field by
setting the expansion of FIT attraction
and market diversification as a key policy.
Jeju has the new goal of achieving 5
million foreign visitors in 2018. As an
Inter-Island Tourism Policy Forum member,
I am sure that an open mind and
kindness are our biggest assets and
source of competitiveness.
At the Jeju Forum held last May, Jim
Rogers, the chairman of Rogers Holdings,
said ‘Attracting foreign talent and capital
will increase quality of life for local
residents.’ This is very important for island
residents and tourism businesses.
The future of an island region depends
on tourism. What is needed is sustainable
tourism that will preserve the natural
environment and culture.
Thank you for your attention.
7 November 2013
Woo Keun-Min