--- title: "What Travel & Hospitality Professionals Need to Know About the 3/29 Domestic Stimulus Package" description: "How will it impact the hospitality industry — and what's the economic upside?" published: 2023-04-07T06:00:00+00:00 author: "ONDA 편집팀" category: "Insights" image: "https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65d61f51dd949bc301187b59_Frame_84.jpg" canonical: https://global.onda.me/en/blog?slug=3-29-naesu-hwalseonghwa-daecaeg-yeohaeng-gwangwang-sugbageob-jongsajaga-jumoghal-bubun locale: en --- # What Travel & Hospitality Professionals Need to Know About the 3/29 Domestic Stimulus Package On March 29, the Korean government rolled out a domestic stimulus package. What caught our eye: **the focus is heavily on tourism**. Let's break down what's in it — and what it means for travel, hospitality, and accommodation businesses. ## **1. Why now?** "Domestic demand" = total consumption + investment happening inside Korea (public and private). Since late 2022, high inflation and interest rates have kept recession fears alive. Consumer sentiment has dipped below baseline (100) for nine straight months. In short: post-COVID revenge spending gave the economy a lift, but recent slowdowns at home and abroad have stalled the recovery. This stimulus is designed to reignite domestic consumption and kickstart an economic cycle. ## **2. President: "Tourism is the key to domestic stimulus"** The big priority? **Revive domestic tourism and bring in more foreign visitors.** Why? Face-to-face service industries — tourism, lodging, F&B — still haven't bounced back to pre-COVID levels. Inbound tourists are at 30% of 2019 numbers. Foreign spending in Korea is half (54%) of what it was before the pandemic. ![Source: e-National Index](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a407e0e071a2c7fb2de585_6432b8d8925206d0c897df79_chart106001_1Img.png) The good news: inflation peaked at 6.3% in July 2022 and has eased to 4.8% by February 2023. Korea also [relaxed COVID entry measures for Chinese travelers](https://www.jejunews.com/news/articleView.html?idxno=2200619). All signs point to an opening — both for domestic consumption and inbound tourism. **_"Now that global travel restrictions are easing and Korea–Japan relations are improving, conditions are finally right to bring tourism and F&B — which took a major hit during COVID — back to pre-pandemic levels."_** ## **3. What's in the package?** The stimulus aims to boost domestic demand through public-private partnerships, support local economies and small businesses, and ease cost-of-living pressures. ![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a407e0e071a2c7fb2de57d_6432b8fb1b12843180966ccb_3.29_sub1.png) Four pillars. Here's what matters most for travel, tourism, and hospitality: ### **1) Domestic Demand Boom-Up Package** > **Over 50 mega-events to spark a tourism boom** From April onward, Korea will host 50+ large-scale events — K-pop concerts, international conferences, cultural and sports festivals. Highlights include Dream Concert (with K-pop idols), Cheongwadae tourism packages, and the Busan International Film Festival (Asia's largest). June is "Travel Month" — expect discounts on transportation, lodging, and attractions, plus consumer coupons. July–August will roll out rural tourism programs to maximize the summer travel season. > **Industry-wide participation: massive corporate discount campaigns** When big brands offer discounts during holidays and events, consumers spend more freely. Fashion and big-box retailers are planning spring and summer promotions. The key part: **In April–May, SRT and KTX high-speed rail will expand discounts, and lodging discount promotions are coming.** _(More on lodging in a moment.)_ On rail: SRT will discount fares up to 30% in April (1st–17th) and October, adding 30% more discounted trains vs. last year. KTX will bump family discounts from 30% to 50% during May (Family Month) for multi-child households, and pregnant members get 50% off too. Summer is peak season for travel and lodging. The shoulder season? Slow. These rail + accommodation discounts could create demand even in off-peak months — something worth watching. > **Expanded support for essential travel costs and employee vacation stipends** As mentioned, **1 million people will get ₩30,000 off domestic lodging bookings** via online travel platforms. Plus: ₩10,000 in points for camping sites, up to 50% off KTX combo packages with regional tourism, and ₩10,000 off Naeil-ro Pass tickets. On top of that, up to 190,000 SME employees and small business owners will receive ₩100,000 in domestic travel subsidies. The structure: companies and workers each contribute a portion; the government adds ₩100,000 on top, which can be spent on a dedicated online mall. ![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a407e0e071a2c7fb2de581_6432b919e3a3f0a49a27c0cf_3.29_sub2.png) Worth noting: lodging promotions like this have been run before during COVID (under names like "Korea Accommodation Festival"). ONDA data shows that [post-promotion, total lodging transaction volume jumped 13.9%](https://corp.onda.me/insight-content/ktostay-data-2021) (2021 baseline). This round could deliver a similar lift. The government is selecting platform partners for the lodging discount program in April — OTA operators should watch for the detailed eligibility criteria. > **Nationwide support for local festivals: the K-Travel Festa** The government is branding 130+ local festivals across the country as "K-Travel Festa," organizing them by theme and developing linked tourism products. ![K-Travel Festa: local festivals by theme (Source: Ministry of Economy and Finance)](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a407e0e071a2c7fb2de589_6432b94905307e57adc1bcc7_k-_E1_84_8B_E1_85_A7_E1_84_92_E1_85_A2_E1_86_BC_20_E1_84_91_E1_85_A6_E1_84_89_E1_85_B3_E1_84_90_E1_85_A1.jpeg) Local governments and public institutions will co-issue consumer coupons, run discount campaigns, and open up public lodging, cultural, and sports facilities. Train service will increase during major events like Suncheon Garden Expo (Apr–Oct '23) and Saemangeum Jamboree (Aug '23). When festivals bring crowds to a region, demand for lodging spikes. Hotels and guesthouses can capitalize by tying promotions to festival dates — or using dynamic pricing to capture the surge. ### **2) Strengthening the domestic consumption base** Even with vacation subsidies and festival support, people can't travel if they don't have the time or flexibility. The government is working to make **"travel-friendly conditions."** Examples: expanding "workcation" (travel-friendly work arrangements) pilot programs with lodging subsidies. Designating the last weekend of every month as "Weekend Getaway Weekend" to encourage short trips for flexible-work companies and employees. Also: from April through December, a temporary 10%p increase in income deductions for cultural spending and traditional market purchases. Combined with recent moves like making Buddha's Birthday and Christmas eligible for substitute holidays, the goal is simple: give workers the time and money to travel. ### **3) Boosting inbound tourism** > **Easier entry: visa reform, more flights** To attract more visitors, Korea is improving visa rules first. 22 countries (including the U.S., Japan, and Taiwan) with high visitor volume and low rejection rates will get **temporary K-ETA (electronic travel authorization) exemptions** through next year. Lower barriers = more arrivals. To encourage longer stays, Korea is introducing: - **Digital nomad visa (workcation visa)**: allows 1–2 year stays even without domestic income. - **K-Culture training visa**: for foreign youth to study K-pop and other specialties at Korean institutions. On top of that, international flight capacity to/from China, Japan, and Southeast Asia will recover to 80–90% of 2019 levels. Airlines serving new regional airport routes will get promotional support. Airlines are planning discounts and tourism tie-in promotions for travelers from Japan, Taiwan, and Southeast Asia to drive traffic. > **Upgraded experiences: K-pop, food, medical tourism** COVID put Korean culture in the global spotlight — K-pop, K-dramas, all of it. The government wants to capitalize. Big K-pop concerts and events are scheduled for May–October across major cities. 40 "Hallyu-themed" tourism routes (think "BTS variety show filming locations") are in development. Also on the table: relaxing outdoor ad restrictions for foreigner-only casinos in high-traffic areas like airports, Myeongdong, and Itaewon. Plus, plans to develop integrated casino resort complexes to attract high-spending international visitors. ## **4. What's the economic impact?** Summing it up: the 3/29 stimulus targets tourism and lodging — sectors still trailing pre-COVID performance — to drive consumption and growth. What does that mean economically? [Hyundai Research Institute](https://www.fnnews.com/news/202303301035213320) estimates short-term value added in tourism at ₩4.6 trillion — roughly 0.2% of 2023 GDP. Employment effect: near 120,000 jobs. The ripple effect will extend beyond tourism over time. Mid- to long-term impact: ₩6.69 trillion in production, ₩2.76 trillion in value added. **Combined total (short-term tourism + long-term spillover):** - Production: ₩17.96 trillion - Value added: ₩7.36 trillion - Employment: 172,800 jobs Global tourism is reopening. If this stimulus can solidify domestic demand, it could build long-term competitiveness for Korea's travel industry — and fuel broader economic growth. #### [👉 Read the full 3/29 stimulus plan (Korean)](http://bit.ly/40U16AI) ⚠️ All rights reserved. Cite this piece as 'ONDA (온다)' when quoting.