Jeju's tourism industry has been placed on alert as domestic fuel surcharges jumped more than fourfold in a month, prompting the provincial government to allocate 3.15 billion won in emergency funding for discounts and local currency support.
A total of 391,212 tourists visited Jeju between May 1 and 10, down 4.2% from the same period last year, according to the Jeju Tourism Association on Sunday. Most of the decline came from domestic travelers. The number of Korean visitors during the period fell 8.1% year-on-year to 308,994.
Foreign tourists, by contrast, rose 13.5% to 82,218. However, their share of the overall market remains too small to offset the drop in domestic demand, industry watchers said.
"70,000 Won Just for Fuel": Soaring Costs Weigh on Jeju Trips
The surge in domestic fuel surcharges is being cited as the main cause of the decline in tourists. The surcharge jumped to 34,100 won per one-way ticket this month from 7,700 won, a more than fourfold increase in just a month. Travelers on round-trip flights to Jeju now pay about 70,000 won in fuel surcharges alone.
The domestic fuel surcharge is set to rise further to 35,200 won in June, and the burden on travelers is expected to grow as international oil prices continue to climb.
A reduction in seat capacity is another setback. Under this year's summer flight schedule, domestic flights originating from Jeju total 1,534 per week, 24 fewer than last year. Available seats have also decreased by more than 1,000.
With flight cuts and higher fuel surcharges coming at the same time, concerns are mounting that travel demand could weaken. The industry is particularly watching booking trends for the summer peak season.
"Demand booked before the fuel surcharge hike is holding up for now, but new bookings are clearly slowing," an industry official said. "The full impact is likely to become more pronounced during the peak season in July and August."
Lodging Operators: "Empty Rooms Even on Holiday Weekends"
Changes are already being felt on the ground. A lodging operator in Seogwipo, identified as A, said, "May is usually a busy time because it overlaps with the Children's Day holidays and the school excursion season, with inquiries pouring in. But bookings are moving noticeably slower this year."
"Except on weekends, we have quite a few vacant rooms, and we're not seeing the usual pattern of being fully booked months in advance," the operator said. "If this trend continues into the summer peak season, the entire local economy could take a hit."
Meanwhile, Jeju Province has drawn up a supplementary budget of 3.15 billion won to help revive the tourism market. Starting next month, tourists who fly to Jeju and stay for two nights or more will receive the local currency "Tamnanajeon." The province also plans to offer discounts of up to 30% on accommodations, car rentals, and food and beverages through Tamnao, Jeju's tourism platform.
"We are focused on easing tourism sentiment dampened by higher airfares and expanding stay-based tourism," a provincial official said. "Our goal is to maximize demand during the summer peak season."
