Travelers are increasingly turning to regional destinations within Korea instead of heading overseas, as the prolonged Middle East conflict has pushed international fuel surcharges to record highs. Following an uptick in first-quarter bookings at major resorts, regional travel packages have been selling out early in the second quarter, with the benefits becoming increasingly visible.
According to the tourism industry Tuesday, the occupancy rate (OCC) at Inspire Entertainment Resort on Yeongjong Island in Incheon rose 10 percentage points in the first quarter compared with a year earlier. The non-member occupancy rate at Ananti Hotels in Gijang, Busan and Namhae, South Gyeongsang Province was also about 20 percentage points higher this month than in April last year. "As news of rising fuel surcharges spread, inquiries for May and June stays have more than doubled from last year," an industry official said.
Demand for regional travel packages has also surged. The Geoje, South Gyeongsang Province package under the "Half-Price Travel" program run by the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization filled all 90 slots within three hours of opening pre-registration on the 15th of this month. According to the ministry's tally, domestic regional travel by Korean residents totaled 39.31 million trips in January and February this year, up 6.9% from 36.77 million trips in the same period last year.
The industry views that the burden of overseas travel is unlikely to ease anytime soon. With the price of Singapore jet fuel, the benchmark for May international fuel surcharges, exceeding $214 per barrel, the surcharge tier was set at level 33, the highest ever. As a result, fuel surcharges for long-haul U.S. routes such as New York and Chicago on Korean Air have jumped to 564,000 won.
"The spillover benefits will become more pronounced starting in the second quarter, when fuel surcharges begin to rise in earnest," an industry official said. "If high oil prices persist through the summer peak season, demand for domestic regional travel will inevitably grow further."
