What did the government's lodging discount program achieve, and how did it differ by region?
The government's lodging discount program has been running every year since 2020. Designed to boost domestic consumption and tourism, it's been branded as the "Korea Accommodation Festa" since last year.
For hoteliers, it's become the marquee event of the year. So how did it actually perform in 2023? And what patterns emerged across regions and property types?
2023 Accommodation Discount Program: The Numbers
The Korea Tourism Organization just released its 2023 performance analysis of the program.
Run across three waves — spring (May–June), Chuseok (September–October), and fall (October–November) — the 2023 Accommodation Festa saw 1.303 million coupons redeemed.
Those coupons put 3.11 million people on the road. The program generated ₩180.8 billion in accommodation spending and ₩522.6 billion in total travel expenditure.
Coupon Use: Hotels and Motels 80%, Pensions and Resorts 20%
Who used the coupons? Gender split was basically even: 50.4% men, 49.6% women.
But Gen Z and Millennials accounted for 70% of all redemptions — the younger the traveler, the more likely they were to book with a coupon. That said, average room rates were much higher for travelers in their 30s and 40s, likely driven by family trips with young kids.
By region, Gyeonggi (14.7%), Gangwon (13%), and Seoul (11.9%) topped the list. Four out of every ten coupons were used in these three regions.
Busan, Gyeongsang, Jeju, and Incheon followed. Within these, major tourist hubs like Gangneung, Gyeongju, Jeju City, Seogwipo, and Gapyeong saw the heaviest concentration.
Motels (49.9%) and hotels (32.9%) dominated. Eight out of ten coupons were redeemed at motels or hotels.
Pensions (13.6%) and resorts/other (3.5%) had smaller shares — but given the total volume, pensions and resorts still saw roughly 220,000 bookings through the program.
And since motels skew heavily toward the Seoul metro area, regional lodging patterns vary significantly — something worth keeping in mind.
2023 Accommodation Fest: Regional Breakdown
Gyeonggi
Gyeonggi was overwhelmingly motel-driven (62.9%). Hotels (19.2%) and pensions (15.8%) lagged behind other regions.
Price points were lower, too. Most coupons (65.1%) went toward stays under ₩100,000, and fewer than 20% were used at properties over ₩150,000. Budget-conscious travelers dominated.
Gangwon
Gangwon skewed older — more travelers in their 30s–50s. Hotels (43.3%) and resorts (14.4%) had strong showings, with motels (21.9%) and pensions (19.9%) evenly distributed.
Gangwon had the highest average room rate (excluding Sejong). Six out of ten stays cost over ₩100,000, and more than 35% exceeded ₩150,000. Gyeonggi had the most bookings, but Gangwon brought in far more revenue.
Seoul & Busan
In Seoul and Busan, hotels and motels accounted for 95%+ of redemptions. Half of all coupons went toward properties over ₩100,000, with rooms above ₩150,000 making up 25%. Gen Z and Millennials were especially active users.
Gyeongbuk
Gyeongbuk stood out for its pension share. Pensions (29.3%) came in second after motels (44%) — concentrated around Pohang and Gyeongju. Family travel must be a factor: women (56.8%) and travelers in their 30s–50s were overrepresented here.
Jeju
Jeju was hotel-heavy. Hotels captured 75.4%, followed by pensions at 11.4%. Motels (8.1%) were the lowest in the country.
Jeju's a family destination, so 30-somethings and 40-somethings made up the bulk. Average room rates ranked second-highest nationally (excluding Sejong), and high-end properties over ₩300,000 accounted for 7.7% of stays — the highest share nationwide.
Six in Ten Travelers Left Their Home Region
Did the program actually boost regional tourism? Comparing users' home addresses to their booking locations, roughly 800,000 out of 1.303 million coupons were redeemed outside users' home regions.
Six in ten coupon users (61.4%) traveled to a different region for an overnight stay. That's a clear win for the program's stated goal of boosting domestic travel.
Starting this year, the program has been restricted to properties outside the Seoul metro area (Seoul, Gyeonggi, Incheon). Since the capital region saw high same-region usage, this year's edition should drive even more interregional travel.