Jeonnam Province Prepares 'Recovery Plan' for Travel Agencies Facing Prolonged COVID-19 Business Difficulties

Emergency Livelihood Support Fund of 500,000 Won to Be Provided to 525 Travel Agencies in the Province

[Muan=Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] Jeonnam Province has prepared recovery measures to support travel agencies suffering severe financial difficulties due to the prolonged COVID-19 pandemic and the resulting contraction of the tourism industry.

The province announced on the 8th that it will provide an emergency livelihood support fund of 500,000 won to 525 registered travel agencies within the province.

The support will be provided before the Lunar New Year holiday after completing the application process.

Additionally, the province plans to propose to the Ministry of Culture, Sports and Tourism and other government bodies the designation of the travel industry as a special disaster sector, tax payment deferrals for travel agencies, and government-level support measures such as unsecured loans using the Tourism Promotion and Development Fund.

Furthermore, a tourism council consisting of related organizations and groups within the province?including the Tourism Association, travel industry representatives, the Korea Tourism Organization, and university professors?will be operated with a focus on revitalizing the tourism industry until the end of the COVID-19 pandemic.

Yoo Mija, Director of the Tourism Division of Jeonnam Province, stated, “Although the tourism industry is facing many difficulties due to COVID-19, we will do our best to overcome the current situation through close cooperation and continuous communication channels with tourism businesses.”

Meanwhile, according to the damage analysis of the local tourism industry conducted by Jeonnam Province at the end of last year, travel agency sales decreased by 67 billion won, a 73% drop compared to 2019 before the pandemic. Among these, tourism accommodation sales fell by 12%, and amusement facility sales decreased by 56%.

In particular, the travel industry experienced a sharp decline in sales last year due to the suspension of overseas travel and strengthened social distancing leading to reduced domestic travel. Most agencies in the province are on the brink of closure, facing collapse, and have demanded that the government prepare countermeasures.

This content was produced with the assistance of AI translation services.