[Reporter’s Eye] Jeju Island Golf Courses That Experienced a Boom, Facing Headwinds?
Jeju Provincial Council: "If Golf Courses Received Support During Hard Times, It's Time to Return Benefits Now"
Jeju Residents Flooded with Complaints Against Golf Courses That Only Pursued Profit
Early Cold, COVID-19 Spread, and Strengthene
[Asia Economy Honam Reporting Headquarters (Jeju) Reporter Park Chang-won] An unexpected setback has hit the Jeju golf course industry, which experienced a boom this year due to the COVID-19 pandemic windfall.
Due to complaints from Jeju residents about golf course usage, the government's and local governments' strengthened social distancing measures, and the push to mandate COVID-19 testing for visitors arriving in Jeju, golf courses are struggling as cancellation calls flood in.
In particular, the golf course industry has drawn criticism for repeatedly engaging in so-called objectionable business practices that betrayed the sentiments of local residents regarding golf course reservations this year.
Residents had been able to use golf courses at a discount of about 10,000 to 50,000 KRW compared to the regular rates by applying resident rates.
However, facing a special situation this year with an increase in domestic travelers due to the prolonged COVID-19 pandemic, Jeju golf courses sought to increase profits by avoiding reservations from residents who paid relatively less or even abolishing the resident rate system, provoking a backlash.
Recently, the Jeju Provincial Council's Administrative Autonomy Committee amended ordinances related to the local golf course industry that neglect residents.
At the meeting, the 'Partial Amendment to Jeju Provincial Tax Ordinance' was passed, excluding golf courses from the groundwater use regional resource facility tax exemption and tripling the property tax rate on membership golf courses from the current 0.25% to 0.75%.
Earlier, Jeju Provincial Council Culture and Tourism Committee Chairperson Ahn Chang-nam pointed out, "Jeju golf courses enjoy low tax rates but have raised usage fees and refuse reservations from Jeju residents who pay lower fees," adding, "If golf courses received support during difficult times, they should now return the benefits they have received."
Moreover, as Jeju announced plans to mandate COVID-19 testing for all incoming visitors, local golf courses face a crisis of mass reservation cancellations.
Additionally, with the administrative order banning gatherings of five or more people in effect until the 3rd of next month, only three-player rounds are allowed at golf courses where four-player rounds are standard, leading to a wave of cancellations for small-scale golf trips and putting the Jeju golf course industry in crisis.
A local golf course industry official reported, "For example, a well-performing 36-hole golf course recently had only about 10 teams in the first session on Monday morning," describing the current situation.
The Jeju golf course industry hopes for increased usage by residents during a period of sharply reduced tourist inflow, but is unable to hastily market to residents.
A travel agency representative said, "Large travel agencies anticipated a boom this winter and made large-scale reservations for Jeju golf courses, even paying advance deposits," adding, "Travel agencies sell golf packages including their own profits, so prices are higher than local rates. If golf courses lower green fees due to lack of visitors, they cannot do so because of their relationships with travel agencies that have provided profits."
Resident-led boycott sentiment against local golf courses also plays a role. On an app where Jeju golf courses can be reserved, a consensus formed to avoid using certain golf courses.
Also, on a golf band widely used by many residents, several negative comments were posted on a golf course's post attempting a resident event.
As the Jeju golf course industry, which was obsessed with profit at the expense of local residents, faces backlash, attention is focused on how it will overcome the current situation.
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