Korean travelers are shifting from overseas destinations to domestic regional trips as the prolonged Middle East war drives up fuel surcharges. Following an increase in first-quarter bookings at major domestic accommodations, regional travel reservations have been selling out early in the second quarter, with the spillover benefit gaining momentum.
According to the tourism industry Tuesday, the occupancy rate (OCC) at Inspire Entertainment Resort on Incheon's Yeongjong Island in the first quarter rose 10 percentage points from the same period last year. The non-member occupancy rate at Ananti Hotels in Gijang, Busan, and Namhae, South Gyeongsang Province, climbed about 20 percentage points this month compared with April last year. "Inquiries for May and June stays have more than doubled from last year on news of rising fuel surcharges," an industry official said.
The "Half-Price Travel" program promoted by the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization is also filling up early. The travel program for Geoje, South Gyeongsang Province, which runs from the 15th of this month through the end of May, sold out its 90-group capacity within three hours of opening pre-registration.
According to the culture ministry, the number of domestic regional trips by Koreans in January and February this year reached 39.31 million, up 6.9% from 36.77 million during the same period last year, reflecting growing demand for regional travel.
The number of travelers opting for domestic trips is expected to keep rising as soaring oil prices push up overseas airfares. The price of Singapore jet fuel, the benchmark for May's international fuel surcharge, topped $214 per barrel, setting the surcharge tier at an all-time high of 33. For Korean Air long-haul routes to the Americas, including New York and Chicago, the May fuel surcharge alone jumped to 564,000 won ($410).
"The spillover benefit will become more pronounced from the second quarter, when fuel surcharges begin rising in earnest," a tourism industry official said. "If high oil prices persist through the summer peak season, demand for domestic regional travel is bound to grow further."
