Government to support tourism industry hit by China’s retaliatory actions

Government to support tourism industry hit by China’s retaliatory actions


The Korean government will extend a helping
hand to Korea’s tourism industry, which is feeling the blow of China’s growing economic
retaliation. Seoul is expected to suffer tens of billions
of dollars in losses if Beijing, upset over South Korea’s defense upgrade decision…
continues to target the sector. Kim Min-ji has the latest. The Korean government has vowed to step up
support for the country’s tourism industry,… which has been hit by China’s apparent retaliation
against the deployment of the THAAD missile defense system on the Korean peninsula. “We will try to ease the acute difficulties
Korea’s tourism industry is facing due to China’s retaliatory actions… and work to
revamp the sector, which is heavily reliant on Chinese tourists.” The government will set aside some 420 million
U.S. dollars in funds and guarantees for the tourism sector… and provide additional support
to companies that maintain their workforce instead of laying off employees. It will also work to bring in tourists from
other countries… by issuing electronic visas for tour groups from Southeast Asia… and
establishing a platform for disseminating information and promotions to attract individual
tourists. The Korean economy could face losses of some
20 billion dollars,… should China step up further retaliatory action. The state-run Korea Development Bank pointed
to the cosmetics industry, duty-free shops and tourism as the most vulnerable sectors. It says cosmetics companies are expected to
see losses of over 1-point-4 billion dollars,… duty-free shops, about 5-point-3 billion,…
while the tourism sector could see its revenue drop by almost 6-point-4 billion. Beijing has already imposed a slew of unofficial
sanctions,… including suspensions on Korean retail stores operating in China,… getting
tougher on Korean imports and banning group tour packages to Korea. “If the dispute drags on, retaliatory measures
will only escalate. In terms of Korea’s travel balance,… thanks
to China, it was able to narrow its deficit. So if tourists decline, the deficit will increase,…
and it will also have ripple effects on other businesses that were created or fostered to
meet the demands of Chinese tourists several years ago.” While it remains to be seen which path China
decides to take,… experts say… given Beijing’s hard-line approach to Japan and Taiwan over
similar disputes in the past,… its retaliatory actions against Korea could continue for some
time. Kim Min-ji, Arirang News.

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