Due to High Inflation and COVID Resurgence, "We Give Up on Vacation"

1 in 4 People in Their 20s 'Give Up Vacation'
Cost Burden and COVID Spread Are Reasons

On the 24th, marking the start of the peak vacation season, Gimpo Airport's domestic terminal in Gangseo-gu, Seoul, is bustling with travelers. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Yoo Byung-don] Je Jong-hyun (32), who had been looking forward to his summer vacation, had his plans to travel to Hawaii or Guam repeatedly disrupted. As the spread of COVID-19 surged again, he gave up on overseas travel and changed his destination to Jeju Island, but even that had to be changed again to Busan due to soaring airfare prices. However, after discussing with his family, they ultimately decided to spend this vacation quietly at home. He was worried about his parents, who have not yet contracted COVID-19. Je said, “Besides the cost, my family has never been infected with COVID-19, so I’m worried about the recent surge. It’s disappointing, but I’ve decided not to take a vacation this summer.”

This summer, the first since the full lifting of social distancing measures, marks the peak vacation season, but the number of people giving up on vacations is increasing. This is due to the burden of travel costs amid the resurgence of COVID-19 and ongoing high inflation.

Recently, Alba Heaven conducted a survey on ‘vacation plans’ targeting 1,024 people in their 20s. Among all respondents, 25.1% answered that they would give up their vacation. The biggest reason for giving up vacation was ‘cost burden (44.4%, multiple responses allowed),’ and ‘anxiety about the COVID-19 situation (22.6%)’ also accounted for a significant portion.

Looking at the ‘June Consumer Price Trends’ announced by Statistics Korea, the average domestic group travel cost rose by 31.4% compared to before. The exchange rate also surpassed 1,300 won per dollar, increasing the burden of travel expenses. Because of this, a new term ‘Vakeflation’?a portmanteau of ‘vacation’ and ‘inflation’?has emerged.

The number of confirmed COVID-19 cases exceeded 100,000 on the 27th of last month, and it is projected to rise to 200,000 within one to two weeks. Accordingly, those preparing for overseas travel during the vacation season are reconsidering cancellations. If infected with COVID-19 locally, travelers may face issues such as having to extend their vacation to endure the quarantine period on-site.

The harsh living conditions caused by the downturn in the stock and cryptocurrency markets, along with rising real estate interest rates, are also reasons for giving up vacations. Office worker Ha Ji-yeon (37) said, “As the base interest rate rises, loan interest rates have also jumped, increasing household burdens,” adding, “It’s tough to even repay loans, so a summer vacation is out of the question.” The Bank of Korea’s Monetary Policy Committee raised the base interest rate from 1.75% to 2.25% on the 13th of last month. The average interest rate on general bank credit loans has also risen continuously for five months (from January to May).

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