{"title":"(The Trends of North Korean Tourism Policy and The Implications for Inter-Korean Cooperation)","authors":"Haejung Lee, Seonghwan Kim, S. Kang","doi":"10.2139/ssrn.3710401","DOIUrl":null,"url":null,"abstract":"English Abstract: The trends of North Korean tourism policy and implications for inter-Korean cooperation Since Kim Jong-un has taken over as the leader of North Korea, North Korea has been pursuing aggressive and open tourism policies to secure stable means to earn foreign currency and improve its image. In March 2013, North Korea adopted a “Simultaneous Development Policy of Economy and Nuclear Weapons†at the 23rd Plenary Meeting of the 6th Central Committee of the Workers' Party of Korea and called for the revitalization of tourism by successfully creating various tourist areas, including the Wonsan and Chilbosan districts. The Five-Year Strategy for National Economic Development (2016–2020) announced at the 7th Congress of the Workers' Party of Korea in May 2016 also emphasized the operation of economic development zones and revitalization of the tourism sector. In particular, since 2016, economic sanctions by the international community have expanded and deepened, making it difficult for foreign currency to flow in through foreign trade, and North Korea has become more interested in the revitalization of the tourism industry, which can also contribute to the improvement of the national image while bypassing sanctions. As if to reflect this, Chairman Kim Jong-un's tours of tourist areas and on-site guidance of major tourism areas have increased from only twice in 2016 and once in 2017, to 10 in 2018 and 11 in 2019. The major tour areas include Samjiyon City, Yangdeok Hot Spring C lture Recreation Area, and Wonsan Galma Coast Tourism Area, which are classified as the top three tourist areas. Compared to other industries, the initial investment cost of the tourism industry is relatively lower, and if a certain level of infrastructure is secured, a reasonable amount of foreign currency can be earned stably. In the case of socialist transition countries such as Vietnam and Cuba, the acquisition of foreign currency through tourism at the beginning of the transition was used as a driving force for economic growth. North Korea is also believed to harbor intentions to earn foreign currency to restore its poor industrial base by invigorating the tourism industry using its relatively well-preserved natural environment. The nation is also attempting to break away from its closed-off image and create the image of a normal country through more active tourism policies than in the past. The tourism industry is relatively free from sanctions against North Korea by the international community, making it a promising channel for inflows of foreign currency while bypassing sanctions. Above all, Kim Jong-un has experience studying in Switzerland, which has a well-developed tourism sector, and seems to have been trying to fortify the economy and improve people's lives by revitalizing the tourism industry. This study analyzes the trends in tourism policy promotion in North Korea since Chairman Kim Jong-un took office in 2012, and promotes the New Northern Policy such as multilateral tourism cooperation including North and South and the New Economic Plan of the Korean Peninsula. The intention is to provide the necessary policy implications by grasping recent changes in North Korea's tourism policy, analyzing North Korea's policy intentions, and establishing concrete and feasible multilateral tourism cooperation plans including the two Koreas. Most notably, to promote individual tourism on a humanitarian level proposed by the government, as well as individual tourism via third countries through travel agencies of third countries, and individual tourism by foreigners in a form connecting the two Koreas, we have analyzed in detail the major North Korean tourism products currently being traded, and go on to derive important implications. Chapter 2 examined the changes in tourism policies in North Korea since Kim Jong-un took power as the leader of North Korea and analyzed perceptions of the tourism industry through North Korean literature. Amid international sanctions against North Korea due to the North Korean nuclear issue, North Korea is struggling to come up with measures to develop its economy by fostering its tourism industry. It was judged that the government is trying to boost the economy by revitalizing the construction industry and in particular the development of major tourism facilities, including the hot spring cultural resort in Yangdeok-gun, which was completed in 2019, the Wonsan Galma Coast Tourism Area, which is scheduled to be completed in 2020, and the construction of Samjiyon City. North Korea has been pushing forward with an all-round economic development zone policy, requiring 18 of the 28 economic development zones to include tourism development plans. In addition, the North Korean government has been showing its willingness to foster the tourism industry through the readjustment of tourism-related physical and human infrastructure. North Korean tourism products have diversified beyond the previous simple sightseeing tourism products to experience- and life-oriented tourism products, as the state becomes more active in promoting tourism to attract tourists. Due to the North Korean government's policy demand for tourism industry development, North Korea's tourism industry-related research has also increased significantly compared to previous times. Recently, North Korean academics are focusing on areas of interest such as exploring tourism industry development in line with trends in the world tourism market, attracting foreign capital through tourism development and eco-tourism development. Regarding he analysis of trends in the global tourism market, the recent development of information processing and information and communication technology (ICT) has led to a growing number of tourists calling for more convenient and comfortable trips, which provided a glimpse into North Korea's demand when looking at the possibility of promoting smart tourism between the two Koreas in the near future. To attract foreign investment through tourism development, tourism development areas are also strategically approached by dividing them into mountain tourism development areas and coastal tourism development areas, urban tourism development areas and rural tourism development areas, cultural and traditional tourism development areas, treatment tourism development areas, resting tourism development areas and comprehensive tourism development areas. Based on this analysis, It was judged that South Korea and North Korea have the potential to develop wellness tourism products using hot springs and forest resources across the country, as well as Korean traditional medicine, healing and meditation, and beauty spa facilities. To promote the development of eco-tourism sites, North Korea has analyzed the need for eco-tourism and emphasized the fundamental purpose of eco-tourism, and makes a particularly interesting claim that ecotourism is different from ordinary tourism and requires less investment in establishing tourism volunteer facilities. Our review also revealed the North should consider developing eco-tourism centers mainly in areas that could guarantee economic efficiency, such as the demilitarized zone (DMZ) and Mt. Geumgang. Chapter 3 examined the current state of the tourism industry in North Korea through tourism resources and infrastructure by region, promotion of tourism development projects since Kim Jong-un has taken over as the leader of North Korea, and analysis of tourism products in North Korea by overseas travel agencies. As a result, it was analyzed that the environment of the North Korean tourism industry will change as follows. First, the two pillars of the North Korean tourism industry are expected to be Pyongyang and Wonsan. As of 2020, most of the North Korean tourism products started in Pyongyang, where tourism resources and infrastructure were most concentrated, and ended in Pyongyang. It was analyzed that if the development of the Galma Coast tourism area in Wonsan is carried out smoothly, it will be possible to develop products that encompass the full scope of Pyongyang and Wonsan or Pyongyang and East Sea Coast area. Secondly, as of 2020, tourism to North Korea is only conducted in limited areas, but the open areas are expected to expand further in the near future. Areas that are likely to be further developed as conditions improve are analyzed as Gangnyeong, Sukcheon in the West Sea, Eorang in the East Sea, Sakju and Onseong in the northern part of the country. Third, North Korea's leisure sports and tourism products are expected to increase as well. Since the early days of the Kim Jong-un administration, the government has built or rebuilt recreational and tourism facilities where people can enjoy a variety of leisure activities. Overseas travel agencies are also selling products that allow them to enjoy the forest and marine leisure in the East Sea region. It was judged that North Korean authorities’ interest in leisure sports tourism will continue to expand. Finally, it was expected that tourism products will be developed in cooperation with the Northeast Asian region when domestic and international conditions improve. Overseas travel agencies sell tourism products in cooperation with South Korea, China and Russia to North Korea, and inter-Korean cooperation tourism is conducted using flights and cruise ships. It was analyzed that if tourism to Mt. Geumgang and Gaesong is resumed, various products will continue to be developed.","PeriodicalId":259955,"journal":{"name":"ERN: Open Macroeconomics in Transition Economics (Topic)","volume":"15 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2020-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"북한의 관광정책 추진 동향과남북 관광협력에 대한 시사점 (The Trends of North Korean Tourism Policy and the Implications for Inter-Korean Cooperation)\",\"authors\":\"Haejung Lee, Seonghwan Kim, S. Kang\",\"doi\":\"10.2139/ssrn.3710401\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"English Abstract: The trends of North Korean tourism policy and implications for inter-Korean cooperation Since Kim Jong-un has taken over as the leader of North Korea, North Korea has been pursuing aggressive and open tourism policies to secure stable means to earn foreign currency and improve its image. In March 2013, North Korea adopted a “Simultaneous Development Policy of Economy and Nuclear Weapons†at the 23rd Plenary Meeting of the 6th Central Committee of the Workers' Party of Korea and called for the revitalization of tourism by successfully creating various tourist areas, including the Wonsan and Chilbosan districts. The Five-Year Strategy for National Economic Development (2016–2020) announced at the 7th Congress of the Workers' Party of Korea in May 2016 also emphasized the operation of economic development zones and revitalization of the tourism sector. In particular, since 2016, economic sanctions by the international community have expanded and deepened, making it difficult for foreign currency to flow in through foreign trade, and North Korea has become more interested in the revitalization of the tourism industry, which can also contribute to the improvement of the national image while bypassing sanctions. As if to reflect this, Chairman Kim Jong-un's tours of tourist areas and on-site guidance of major tourism areas have increased from only twice in 2016 and once in 2017, to 10 in 2018 and 11 in 2019. The major tour areas include Samjiyon City, Yangdeok Hot Spring C lture Recreation Area, and Wonsan Galma Coast Tourism Area, which are classified as the top three tourist areas. Compared to other industries, the initial investment cost of the tourism industry is relatively lower, and if a certain level of infrastructure is secured, a reasonable amount of foreign currency can be earned stably. In the case of socialist transition countries such as Vietnam and Cuba, the acquisition of foreign currency through tourism at the beginning of the transition was used as a driving force for economic growth. North Korea is also believed to harbor intentions to earn foreign currency to restore its poor industrial base by invigorating the tourism industry using its relatively well-preserved natural environment. The nation is also attempting to break away from its closed-off image and create the image of a normal country through more active tourism policies than in the past. The tourism industry is relatively free from sanctions against North Korea by the international community, making it a promising channel for inflows of foreign currency while bypassing sanctions. Above all, Kim Jong-un has experience studying in Switzerland, which has a well-developed tourism sector, and seems to have been trying to fortify the economy and improve people's lives by revitalizing the tourism industry. This study analyzes the trends in tourism policy promotion in North Korea since Chairman Kim Jong-un took office in 2012, and promotes the New Northern Policy such as multilateral tourism cooperation including North and South and the New Economic Plan of the Korean Peninsula. The intention is to provide the necessary policy implications by grasping recent changes in North Korea's tourism policy, analyzing North Korea's policy intentions, and establishing concrete and feasible multilateral tourism cooperation plans including the two Koreas. Most notably, to promote individual tourism on a humanitarian level proposed by the government, as well as individual tourism via third countries through travel agencies of third countries, and individual tourism by foreigners in a form connecting the two Koreas, we have analyzed in detail the major North Korean tourism products currently being traded, and go on to derive important implications. Chapter 2 examined the changes in tourism policies in North Korea since Kim Jong-un took power as the leader of North Korea and analyzed perceptions of the tourism industry through North Korean literature. Amid international sanctions against North Korea due to the North Korean nuclear issue, North Korea is struggling to come up with measures to develop its economy by fostering its tourism industry. It was judged that the government is trying to boost the economy by revitalizing the construction industry and in particular the development of major tourism facilities, including the hot spring cultural resort in Yangdeok-gun, which was completed in 2019, the Wonsan Galma Coast Tourism Area, which is scheduled to be completed in 2020, and the construction of Samjiyon City. North Korea has been pushing forward with an all-round economic development zone policy, requiring 18 of the 28 economic development zones to include tourism development plans. In addition, the North Korean government has been showing its willingness to foster the tourism industry through the readjustment of tourism-related physical and human infrastructure. North Korean tourism products have diversified beyond the previous simple sightseeing tourism products to experience- and life-oriented tourism products, as the state becomes more active in promoting tourism to attract tourists. Due to the North Korean government's policy demand for tourism industry development, North Korea's tourism industry-related research has also increased significantly compared to previous times. Recently, North Korean academics are focusing on areas of interest such as exploring tourism industry development in line with trends in the world tourism market, attracting foreign capital through tourism development and eco-tourism development. Regarding he analysis of trends in the global tourism market, the recent development of information processing and information and communication technology (ICT) has led to a growing number of tourists calling for more convenient and comfortable trips, which provided a glimpse into North Korea's demand when looking at the possibility of promoting smart tourism between the two Koreas in the near future. To attract foreign investment through tourism development, tourism development areas are also strategically approached by dividing them into mountain tourism development areas and coastal tourism development areas, urban tourism development areas and rural tourism development areas, cultural and traditional tourism development areas, treatment tourism development areas, resting tourism development areas and comprehensive tourism development areas. Based on this analysis, It was judged that South Korea and North Korea have the potential to develop wellness tourism products using hot springs and forest resources across the country, as well as Korean traditional medicine, healing and meditation, and beauty spa facilities. To promote the development of eco-tourism sites, North Korea has analyzed the need for eco-tourism and emphasized the fundamental purpose of eco-tourism, and makes a particularly interesting claim that ecotourism is different from ordinary tourism and requires less investment in establishing tourism volunteer facilities. Our review also revealed the North should consider developing eco-tourism centers mainly in areas that could guarantee economic efficiency, such as the demilitarized zone (DMZ) and Mt. Geumgang. Chapter 3 examined the current state of the tourism industry in North Korea through tourism resources and infrastructure by region, promotion of tourism development projects since Kim Jong-un has taken over as the leader of North Korea, and analysis of tourism products in North Korea by overseas travel agencies. As a result, it was analyzed that the environment of the North Korean tourism industry will change as follows. First, the two pillars of the North Korean tourism industry are expected to be Pyongyang and Wonsan. As of 2020, most of the North Korean tourism products started in Pyongyang, where tourism resources and infrastructure were most concentrated, and ended in Pyongyang. It was analyzed that if the development of the Galma Coast tourism area in Wonsan is carried out smoothly, it will be possible to develop products that encompass the full scope of Pyongyang and Wonsan or Pyongyang and East Sea Coast area. Secondly, as of 2020, tourism to North Korea is only conducted in limited areas, but the open areas are expected to expand further in the near future. Areas that are likely to be further developed as conditions improve are analyzed as Gangnyeong, Sukcheon in the West Sea, Eorang in the East Sea, Sakju and Onseong in the northern part of the country. Third, North Korea's leisure sports and tourism products are expected to increase as well. Since the early days of the Kim Jong-un administration, the government has built or rebuilt recreational and tourism facilities where people can enjoy a variety of leisure activities. Overseas travel agencies are also selling products that allow them to enjoy the forest and marine leisure in the East Sea region. It was judged that North Korean authorities’ interest in leisure sports tourism will continue to expand. 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북한의 관광정책 추진 동향과남북 관광협력에 대한 시사점 (The Trends of North Korean Tourism Policy and the Implications for Inter-Korean Cooperation)
English Abstract: The trends of North Korean tourism policy and implications for inter-Korean cooperation Since Kim Jong-un has taken over as the leader of North Korea, North Korea has been pursuing aggressive and open tourism policies to secure stable means to earn foreign currency and improve its image. In March 2013, North Korea adopted a “Simultaneous Development Policy of Economy and Nuclear Weapons†at the 23rd Plenary Meeting of the 6th Central Committee of the Workers' Party of Korea and called for the revitalization of tourism by successfully creating various tourist areas, including the Wonsan and Chilbosan districts. The Five-Year Strategy for National Economic Development (2016–2020) announced at the 7th Congress of the Workers' Party of Korea in May 2016 also emphasized the operation of economic development zones and revitalization of the tourism sector. In particular, since 2016, economic sanctions by the international community have expanded and deepened, making it difficult for foreign currency to flow in through foreign trade, and North Korea has become more interested in the revitalization of the tourism industry, which can also contribute to the improvement of the national image while bypassing sanctions. As if to reflect this, Chairman Kim Jong-un's tours of tourist areas and on-site guidance of major tourism areas have increased from only twice in 2016 and once in 2017, to 10 in 2018 and 11 in 2019. The major tour areas include Samjiyon City, Yangdeok Hot Spring C lture Recreation Area, and Wonsan Galma Coast Tourism Area, which are classified as the top three tourist areas. Compared to other industries, the initial investment cost of the tourism industry is relatively lower, and if a certain level of infrastructure is secured, a reasonable amount of foreign currency can be earned stably. In the case of socialist transition countries such as Vietnam and Cuba, the acquisition of foreign currency through tourism at the beginning of the transition was used as a driving force for economic growth. North Korea is also believed to harbor intentions to earn foreign currency to restore its poor industrial base by invigorating the tourism industry using its relatively well-preserved natural environment. The nation is also attempting to break away from its closed-off image and create the image of a normal country through more active tourism policies than in the past. The tourism industry is relatively free from sanctions against North Korea by the international community, making it a promising channel for inflows of foreign currency while bypassing sanctions. Above all, Kim Jong-un has experience studying in Switzerland, which has a well-developed tourism sector, and seems to have been trying to fortify the economy and improve people's lives by revitalizing the tourism industry. This study analyzes the trends in tourism policy promotion in North Korea since Chairman Kim Jong-un took office in 2012, and promotes the New Northern Policy such as multilateral tourism cooperation including North and South and the New Economic Plan of the Korean Peninsula. The intention is to provide the necessary policy implications by grasping recent changes in North Korea's tourism policy, analyzing North Korea's policy intentions, and establishing concrete and feasible multilateral tourism cooperation plans including the two Koreas. Most notably, to promote individual tourism on a humanitarian level proposed by the government, as well as individual tourism via third countries through travel agencies of third countries, and individual tourism by foreigners in a form connecting the two Koreas, we have analyzed in detail the major North Korean tourism products currently being traded, and go on to derive important implications. Chapter 2 examined the changes in tourism policies in North Korea since Kim Jong-un took power as the leader of North Korea and analyzed perceptions of the tourism industry through North Korean literature. Amid international sanctions against North Korea due to the North Korean nuclear issue, North Korea is struggling to come up with measures to develop its economy by fostering its tourism industry. It was judged that the government is trying to boost the economy by revitalizing the construction industry and in particular the development of major tourism facilities, including the hot spring cultural resort in Yangdeok-gun, which was completed in 2019, the Wonsan Galma Coast Tourism Area, which is scheduled to be completed in 2020, and the construction of Samjiyon City. North Korea has been pushing forward with an all-round economic development zone policy, requiring 18 of the 28 economic development zones to include tourism development plans. In addition, the North Korean government has been showing its willingness to foster the tourism industry through the readjustment of tourism-related physical and human infrastructure. North Korean tourism products have diversified beyond the previous simple sightseeing tourism products to experience- and life-oriented tourism products, as the state becomes more active in promoting tourism to attract tourists. Due to the North Korean government's policy demand for tourism industry development, North Korea's tourism industry-related research has also increased significantly compared to previous times. Recently, North Korean academics are focusing on areas of interest such as exploring tourism industry development in line with trends in the world tourism market, attracting foreign capital through tourism development and eco-tourism development. Regarding he analysis of trends in the global tourism market, the recent development of information processing and information and communication technology (ICT) has led to a growing number of tourists calling for more convenient and comfortable trips, which provided a glimpse into North Korea's demand when looking at the possibility of promoting smart tourism between the two Koreas in the near future. To attract foreign investment through tourism development, tourism development areas are also strategically approached by dividing them into mountain tourism development areas and coastal tourism development areas, urban tourism development areas and rural tourism development areas, cultural and traditional tourism development areas, treatment tourism development areas, resting tourism development areas and comprehensive tourism development areas. Based on this analysis, It was judged that South Korea and North Korea have the potential to develop wellness tourism products using hot springs and forest resources across the country, as well as Korean traditional medicine, healing and meditation, and beauty spa facilities. To promote the development of eco-tourism sites, North Korea has analyzed the need for eco-tourism and emphasized the fundamental purpose of eco-tourism, and makes a particularly interesting claim that ecotourism is different from ordinary tourism and requires less investment in establishing tourism volunteer facilities. Our review also revealed the North should consider developing eco-tourism centers mainly in areas that could guarantee economic efficiency, such as the demilitarized zone (DMZ) and Mt. Geumgang. Chapter 3 examined the current state of the tourism industry in North Korea through tourism resources and infrastructure by region, promotion of tourism development projects since Kim Jong-un has taken over as the leader of North Korea, and analysis of tourism products in North Korea by overseas travel agencies. As a result, it was analyzed that the environment of the North Korean tourism industry will change as follows. First, the two pillars of the North Korean tourism industry are expected to be Pyongyang and Wonsan. As of 2020, most of the North Korean tourism products started in Pyongyang, where tourism resources and infrastructure were most concentrated, and ended in Pyongyang. It was analyzed that if the development of the Galma Coast tourism area in Wonsan is carried out smoothly, it will be possible to develop products that encompass the full scope of Pyongyang and Wonsan or Pyongyang and East Sea Coast area. Secondly, as of 2020, tourism to North Korea is only conducted in limited areas, but the open areas are expected to expand further in the near future. Areas that are likely to be further developed as conditions improve are analyzed as Gangnyeong, Sukcheon in the West Sea, Eorang in the East Sea, Sakju and Onseong in the northern part of the country. Third, North Korea's leisure sports and tourism products are expected to increase as well. Since the early days of the Kim Jong-un administration, the government has built or rebuilt recreational and tourism facilities where people can enjoy a variety of leisure activities. Overseas travel agencies are also selling products that allow them to enjoy the forest and marine leisure in the East Sea region. It was judged that North Korean authorities’ interest in leisure sports tourism will continue to expand. Finally, it was expected that tourism products will be developed in cooperation with the Northeast Asian region when domestic and international conditions improve. Overseas travel agencies sell tourism products in cooperation with South Korea, China and Russia to North Korea, and inter-Korean cooperation tourism is conducted using flights and cruise ships. It was analyzed that if tourism to Mt. Geumgang and Gaesong is resumed, various products will continue to be developed.