They Say They'd Rather Go to Japan Than Travel Domestically... But a 'Surprising Report' Emerges

"If I have to travel domestically, I'd rather go to Japan."

Contrary to the repeated remarks that surface whenever the issue of "price gouging" at domestic tourist destinations arises, actual data shows a completely different trend. While a few cases of price gouging in certain regions have spread through social networking services (SNS), distorting the perception of overall tourism prices, objective indicators show that Korea possesses world-class "price competitiveness."

Namsan Seoul Trail. Korea Tourism Organization

원본보기 아이콘

Yanolja Research, in its insight report "Analysis of Price Competitiveness in Korean Tourist Cities through International Comparison" released on the 23rd, compared accommodation, transportation, and dining prices in Seoul and Busan with those in major global tourist cities. The report found a significant gap between the perception that "Korean tourism is expensive" and the actual data.

According to the report, the average accommodation cost in Seoul is $89.9, about one-fifth of New York's $419.4, and significantly cheaper than other major Western cities such as Paris ($332.7) and Rome ($257.4).

Korea's price competitiveness was also evident compared to major Asian cities. Even when compared with Tokyo ($140.5) and Singapore ($127.8), Seoul's accommodation costs are over 30% lower, leading to the assessment that Korea offers ample appeal from a pricing perspective.

Price competitiveness was also apparent in transportation costs. Taxi fares for a 10-kilometer ride in Seoul are $8.65, about a quarter of the rates in London ($39.03) and Tokyo ($34.65). Public transportation fares are likewise lower than in other major competing cities.

Gyeongbokgung Palace, Jongno-gu, Seoul.

원본보기 아이콘

Dining costs in Seoul are also significantly lower than in Western cities. The cost of a meal for one person in Seoul is $8.79, about one-third the price in London ($26.80) and New York ($25.00). While prices are slightly higher than in some Asian cities such as Japan and Hong Kong, factors such as side dishes being included and the absence of a tipping culture mean that the actual perceived cost remains competitive.

The report pointed out that the "expensive image" of domestic tourism prices is largely shaped by incidents occurring in certain peak seasons and specific regions, rather than by the actual cost structure. The spread of these cases online has led to a distorted perception of the entire market.

Jang Suchung, Head of Yanolja Research, stated, "If Korea's outstanding price competitiveness, as confirmed by objective data, is used both as a proactive marketing asset for foreigners and as a basis to dispel misconceptions and restore trust in domestic travel for locals through a 'two-track' approach, Korea can successfully advance as a tourism powerhouse."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.