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 economic retaliation. A separate report shows the Korean economy
could suffer tens of billions of dollars in losses if the diplomatic dispute escalates. Kim Min-ji reports. 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 20
billion U.S. dollars,… should China step up further retaliatory action. In a recent report, the state-run Korea Development
Bank pointed to the cosmetics industry, duty-free shops and tourism as the most vulnerable sectors,…
as a decline in Chinese visitors inevitably has a direct impact on their sales. The report says Korean 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. On top of that, Korea’s exports to China expected
to tumble 8-point-3 billion. Beijing has already imposed a slew of unofficial
sanctions,… including suspensions on Korean retail stores operating in China,… as well
as banning group tour packages to Korea. China has also banned imports of Korean cosmetics,…
air purifiers and bidets. While it remains to be seen which path China
decides to take,… experts say… given China’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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