The upcoming Lunar New Year holiday is typically a peak season for tourism, but a noticeable decline in visitors heading to Jeju has deepened concerns within the travel industry. (Yonhap)
JEJU, Jan. 9 (Korea Bizwire) — Jeju Island’s tourism-driven economy is under strain as domestic political instability and a recent aviation disaster involving Jeju Air have dampened travel demand, according to an analysis released on January 8 by the Bank of Korea’s Jeju branch.
Between December 5, 2024, and January 7, 2025, the number of domestic tourists visiting Jeju dropped to 971,046—a decline of 8% (84,083 fewer visitors) compared to the same period the previous year. Overall, the island saw a 6.4% decrease in domestic tourists in 2024, totaling 11.87 million compared to 12.68 million in 2023.
Despite the current downturn, Jeju officials predict a recovery in consumer spending later in the year. To bolster the island’s economy, the Jeju government has outlined a five-pronged strategy focusing on small business support, livelihood stabilization, corporate growth, innovation, and fostering new economic drivers.
On January 5, roe deer residing in the Geochin Oreum area of the Roe Deer Ecological Observation Center in Bonggae-dong, Jeju City, were seen resting. (Yonhap)
Key initiatives include integrating local payment systems like “Tamna Pay” with ZeroPay for increased consumer convenience, organizing cultural events in traditional markets to revitalize local businesses, and providing 300 billion won in emergency funds to small business owners.
Additionally, the repayment period for small and medium-sized enterprise (SME) stability loans will be extended from two to four years, with long-term repayment options broadened to 10 years.
Jeju Governor Oh Yeong-hun emphasized the urgent need for political stability to prevent prolonged impacts on the tourism sector. He also suggested the possibility of an early supplementary budget to address the economic challenges.
Jeju’s economic policies aim to navigate the current downturn while fostering resilience and growth in its tourism-centric economy.
Lina Jang (linajang@koreabizwire.com)
