"One Night Hotel Stay Costs 1 Million Won... Ordinary People Sigh, 'I'll Just Do a Homecance'"

As Domestic Travelers Increase... Ocean View Rooms Exceed 1 Million Won
"Price Burden... I'd Rather Rest at Home," Complaints Arise
Experts Say "Proper Administrative Guidance Needed for Excessive Price Hikes"

Vacationers at Haeundae Beach on August 1st last year. Photo is not related to any specific expression in the article.

[Asia Economy Reporter Kim Jung-wan] As major luxury hotels in South Korea, including those in Busan, continue to raise their prices one after another, sighs are emerging among citizens ahead of the vacation season. Some say that due to the burden of accommodation costs, people will have no choice but to spend their holidays resting at home, essentially having a 'home-cation.'

According to the tourism industry in the Busan area on the 20th, as COVID-19 quarantine rules have been relaxed and tourists have turned their attention to domestic travel, major hotels in Busan and other parts of the country are raising their prices. There have even been cases where the cost of a one-night hotel stay exceeds 1 million won.

The cost of the lowest-priced sea-view rooms during the peak season in July at luxury hotels located along the Busan coastline, such as Haeundae and Gijang, is reported to exceed an average of 800,000 won per night. Including fees for various community facilities within the hotels, the amount surpasses 1 million won.

As hotel prices rise, tourists' reactions are not entirely positive. Kim, a company employee in his 30s, said, "With COVID easing up, I planned to travel for the first time in a long while, but the accommodation costs are too burdensome," adding, "I'm considering a home-cation or a hotel staycation at a nearby hotel."

Kim, a 30-year-old office worker who had planned to travel this summer, said, "With social distancing lifted, I thought I might travel a bit this summer, but it looks like I'll be having a 'home-cation' again," adding, "The increased room costs have a big impact."

These complaints from citizens are also related to the recent sharp rise in inflation. The 'economic pain index,' which combines the consumer price inflation rate and the unemployment rate, reached its highest level in 21 years as of May. According to data analyzed and released by Kim Hoe-jae, a member of the Democratic Party of Korea, based on Statistics Korea data on the 20th, the 'May economic pain index' recorded 8.4, marking the highest point in 21 years.

Last month, the consumer price inflation rate was 5.4%, and the unemployment rate was 3.0%. The consumer price inflation rate last month was the highest in 13 years and 9 months since August 2008 (5.6%), and the living cost index, which is composed mainly of frequently purchased items and is closer to the perceived inflation rate, rose by 6.7%, marking the largest increase since July 2008 (7.1%).

Experts suggest that if room prices are raised excessively compared to the inflation rate, appropriate administrative guidance is necessary. Professor Eun-hee Lee of the Department of Consumer Studies at Inha University said, "Vacations for the public are good for mental health, and especially regarding prices, it is not the answer to just let excessively inflated prices due to inflation go unchecked," adding, "If prices are raised excessively beyond the average inflation rate, even administrative guidance in the form of a cooperation letter could have some effect."

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