'6 Billion Won Annual Deficit' Wolmi Sea Train... Pursuing Joint Private Promotion and Differential Pricing

by Park Haesook

Published 12 Jun.2024 18:35(KST)

The Incheon Wolmi Sea Train, which opened in 2019, continues to be a financial burden, incurring an annual deficit of 6 billion KRW. Incheon City and Incheon Transit Corporation have launched various initiatives such as joint promotions with private companies, ongoing events, and weekday fare discounts to improve management and boost ridership.

According to the city on the 12th, the Wolmi Sea Train is a tourist rail train that circulates on a 6.1 km track with four stations, including Wolmi Sea Station, located in the Wolmi area of Jung-gu. In its first year of operation in October 2019, ridership was 92,983, which dropped to 51,060 in 2020 when COVID-19 began, and 57,150 in 2021. However, from 2022, as tourism gradually increased, ridership reached 242,561. Last year, 263,630 people rode the train, and so far this year, 127,367 passengers have boarded the Wolmi Sea Train.

Despite a maximum daily capacity of about 1,500 passengers, ridership has fallen far short. The cumulative deficit has reached approximately 29.2 billion KRW, starting from 4.91 billion KRW in the first year of operation, 6.01 billion KRW in 2020, 6.52 billion KRW in 2021, 5.85 billion KRW in 2022, and 5.9 billion KRW last year. Although over 100 billion KRW was invested in construction, the train has continued to operate at an annual deficit of around 6 billion KRW since its opening.

Wolmibada Train <br>Photo by Incheon City

Wolmibada Train
Photo by Incheon City

In response, the city established an advisory committee last October composed of experts in four areas (operation improvement, content development, tourism and marketing, facility improvement) to gather opinions and recently announced a comprehensive plan to improve management and revitalize the Wolmi Sea Train.

First, as part of a strategy to coexist with the surrounding commercial district, the city signed a business agreement last month with Pororo Park, which opened on Wolmido, to conduct joint promotions. Discounts will be offered for using both the train and the theme park, and package tickets will be sold. The Transit Corporation also plans to collaborate with partner travel agencies, accommodations, and experience facilities to launch package products that include the Wolmi Sea Train.

Considering that the Wolmi Sea Train is almost fully booked on weekends and holidays but has low weekday usage, a plan is underway to allow unlimited train rides on weekdays for customers who present same-day receipts from Wolmi commercial district businesses along with their train tickets.

Additionally, photo zones will be created at train platforms to attract younger riders, and the back of the train tickets will list cooperating Wolmi commercial district businesses to enhance convenience. The exterior wrapping and interior design of the train will be differentiated by season and theme to transform it into a "train people want to ride." Short videos targeting the MZ generation will be produced to generate interest, and ongoing events using social media platforms will be promoted.

The current adult fare of 8,000 KRW will be adjusted starting in August to differentiate between Incheon residents and visitors from other regions, as well as between weekdays and weekends. Incheon citizens will maintain the existing 8,000 KRW fare, while non-residents will be charged 11,000 KRW on weekdays and 14,000 KRW on weekends.

To increase weekday ridership, which averages 603 passengers?less than half of the weekend average of 1,362?various discount programs will be considered, including weekday fare discounts, discounts for seniors, youth, children, persons with disabilities, and veterans, group discounts, travel agency partnership discounts, and package discounts linked with nearby businesses. Furthermore, to improve operational efficiency, operating hours during peak season will be shortened by two hours to 7 p.m., and staff will be reduced from 68 to 47.

An Incheon city official stated, "If the management improvement measures are successful, the annual deficit of the Wolmi Sea Train could be reduced by about 2.2 billion KRW, and it will also help revitalize the Wolmi commercial district. We will do our best to make the Wolmi Sea Train a tourism infrastructure that breathes new life into Incheon’s original downtown areas such as Wolmido and Chinatown."