Incheon Research Institute "Creating a Core Commercial Area for Win-Win Growth with Yeongjong Complex Resort"

Concerns have been raised that a coexistence plan between large-scale integrated resorts such as Paradise City and Mohegan Inspire Entertainment Resort, which have been established on Yeongjongdo Island, and the local community must be devised.

On the 23rd, the Incheon Development Institute stated in a policy research report, "Although the opening of these integrated resorts marks a turning point for regional tourism growth, issues such as damage to commercial districts due to the entry of large-scale stores within the integrated resorts and traffic chaos have been raised," adding, "A mutual understanding and coexistence plan between the integrated resorts and the local community must be established."

According to the Incheon Development Institute, the average monthly consumption of domestic tourists in Jung-gu, Yeongjongdo, Incheon, from May to June last year was 3.9 billion KRW, showing a 9.5% increase compared to the same period the previous year.

Consumption by foreign tourists on Yeongjongdo has also been on the rise since the opening of the integrated resorts. The average monthly consumption by foreign tourists increased by 50.6% and 24.2% respectively when comparing before and after the openings of Paradise City in 2017 and Inspire last year.

Yeongjongdo Paradise City

However, while consumption related to luxury hotels increased, spending on other accommodations such as pensions decreased, and consumption was concentrated around the integrated resort area, showing a polarization by industry and region. The Incheon Development Institute analyzed that this polarization phenomenon is occurring as consumption shifts mainly to integrated resorts with strong lodging and shopping (clothing and miscellaneous goods) functions and large cafes and bakeries.

The institute suggested that in order for integrated resorts and local communities to grow together, measures such as creating core commercial districts for coexistence, establishing management and implementation systems for coexistence, and laying the foundation for policy promotion are necessary. The Incheon local community has also raised concerns about the negative impact of the integrated resort openings on surrounding commercial districts, exclusion of residents and small business owners' opinions, and the lack of institutional measures for regional coexistence.

Hwang Hee-jung, a research fellow at the Incheon Development Institute, emphasized, "Given that integrated resorts are subject to government approval and review, issues surrounding them must be resolved through cooperation among the government, Incheon City, Jung-gu, the integrated resorts, and the local community," and added, "A cooperative administrative system must be established to promote coexistence policies between integrated resorts and the local community."

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