[Edaily Reporter LEE SEON-WOO ] The government has allocated 1.7581 trillion won for the tourism sector in next year’s (2027) budget (government proposal), an increase of 277.7 billion won from this year. This is the largest budget in history, representing an increase of approximately 19% compared to this year’s main budget of 1.4804 trillion won.
Meanwhile, reactions and assessments of this record-high budget are mixed within the tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) industries and among local communities. This is because a significant portion of the increased budget has been allocated to “short-term consumption expansion,” “overlapping projects” with similar objectives, and “infrastructure projects” concentrated in specific regions.
Critics point out that “long-term strategic investments” necessary for structural reform—such as building AI-based smart tourism infrastructure, expanding high-value-added markets like MICE, and fostering tourism startups—have been pushed to the back burner. Some have even called it a “plan that lives for today and ignores tomorrow.” Several officials from local government tourism departments pointed out, “Shouldn’t there at least be prior discussion when scrapping projects that regions also help fund?” They added, “The government is heavily promoting the budget increases without explaining the reasons for the cuts or cancellations.”
◇Cuts to 43 Projects, Including Smart Tourism and MICE
According to the Ministry of Culture, Sports and Tourism, the government’s proposed budget for the tourism sector next year includes 227.2 billion won in new funding for initiatives such as “the creation of ultra-wide-area mega-tourism zones centered on regional airports,” “loan support for the construction of large regional hotels,” and “the revitalization of regional tourist attractions.” Budgets for existing projects—such as “Vacation Support for Workers,” the “Love Your Region Vacation Support” program (which offers half-price travel), “Staycation-Style Regional Tourism” (including sports and nighttime tourism), “Traditional Market Tourism,” and “Walking Tours”—have also been allocated at levels approximately 2 to 7 times higher than this year’s figures.
Conversely, budgets for 43 existing programs were cut or adjusted by approximately 68 billion won. Under “Revitalization of Korean-Style Regional Tourism”—which includes cross-industry collaboration, pet-friendly travel, and hotspot guides—the budget was reduced by over 16 billion won as most sub-programs were abolished or transferred. Budgets for specific projects—including “Smart Tourism,” “Creating a Foundation for Attracting Inbound Tourists” (such as the K-Tourism Cooperation Group and shopping tourism), “Support for Tourism Ventures,” “Fostering the MICE Industry,” and “Converged Tourism Content”—were also reduced by nearly 14 billion won. These are all projects that had been prioritized with the goal of revitalizing and diversifying high-quality, high-value-added tourism.

Although South Korea ranked “second in the world” in the number of international conferences hosted, according to data from the Union of International Associations (UIA), the budget for MICE actually decreased. While the Ministry of Culture, Sports and Tourism announced that it had allocated a total of 32.7 billion won in new funding for the wellness tourism and MICE sectors, the budget for MICE alone—excluding wellness tourism—was 24.2 billion won, a decrease of 1.6 billion won from this year. Not a single won was allocated to the “Unique Venue Revitalization” initiative—which has been ongoing since 2017 to distribute demand, currently concentrated in major cities and specialized facilities such as convention centers and luxury hotels, to smaller cities and facilities.
This has led to criticism that while the government outwardly advocates for “revitalizing regional tourism” and “expanding high-value-added markets,” it is actually placing greater emphasis on attracting individual tourists—a strategy that yields visible results, such as increases in the number of visitors to Korea, within a short period. The CEO of a travel agency that recently organized an incentive tour for 80 visitors to Korea—with an average per-person spending of over 12 million won—pointed out, “Even the ministry in charge completely fails to understand the mechanics of the MICE industry, which requires at least two to three years to attract groups and events.”
◇Overlap with Existing Programs in Mega Tourism Zones
The Ministry of Culture, Sports and Tourism maintains that while it may appear that a significant number of projects have been abolished or cut, this is not actually the case. The ministry explains that it has merely adjusted project items to improve budget efficiency, and that the scale of abolitions or cuts is not substantial. However, the industry and local communities are pointing out that this is a “recycled” plan lacking not only consistency and coherence but also realism and the ability to respond to future challenges.
A prime example is the “ultra-wide-area mega tourism zone,” which aims to establish a “Golden Route for Inbound Tourism” centered on regional airports (Gimhae, Daegu, Cheongju, Muan, and Yangyang). Not only is it problematic that the plan targets airports like Muan and Yangyang—which are either closed or lack active international routes—but critics also point out that the target areas overlap with existing projects, such as the “Southern Region Wide-Area Tourism Development” initiative, which is set to receive 3 trillion won in funding over a 10-year period starting in 2024.

Cities linked to the mega-tourism zones include Busan, Andong, Jeonju, Mokpo, and Gangneung, which were previously included in a six-year program that invested 250 billion won in national funds through last year with the goals of designating them as “International Tourism Cities” and “Regional Tourism Hub Cities.” Gyeongju and Busan (Haeundae)—which were selected this year as “Global Tourism Special Zones” and will receive 3 billion won in national funding over two years—are also included in this initiative. Critics point out that injecting new funds into areas where tourism infrastructure and content development are already underway through separate national projects has blurred the roles and distinctions between these initiatives.
◇Remodeling Vacant Buildings Is More Effective Than Building New Large Hotels in Regional Areas
Concerns have also been raised that the “Local Love Vacation Support” program for areas experiencing population decline (or designated as areas of concern)—which has been allocated 22.8 billion won, a 3.5-fold increase from this year—may overlap with the Regional Extinction Response Fund. The same applies to the “Traditional Market Tourism Revitalization” program, which has been allocated 7.2 billion won next year, a more than 6.5-fold increase. The Regional Decline Response Fund, which allocates 1 trillion won annually to 107 population-declining (or “areas of concern”) regions, was amended under the Framework Act on Local Government Fund Management this past March to allow its use not only for infrastructure development but also for attracting tourists. This directly contradicts the Ministry of Culture, Sports and Tourism’s explanation that the changes were intended to improve budget execution efficiency.
The “Loan Support for the Construction of Large-Scale Hotels in Regional Areas,” intended to expand lodging infrastructure, is also considered impractical given the reality of regional cities—which are littered with vacant buildings due to population decline and the collapse of commercial districts. An official from a tourism foundation in a region experiencing population decline stated, “It’s obvious that even if a large hotel were to open here, it would only accumulate operating losses,” adding, “It would be more realistic to remodel aging facilities and vacant buildings into guesthouses that reflect the local character.”
The cuts to “Smart Tourism Promotion” and “Support for Tourism Ventures” are seen as overlooking the policy’s fundamental philosophy of “preparing for the future.” The CEO of a tourism venture, who requested anonymity, emphasized, “Policies should read market trends and stay half a step ahead rather than chasing issues or fads.” He pointed out, “It is a matter that warrants reconsideration that, while focusing on increasing tourist numbers and short-term consumption, the government has cut long-term future investments—such as DX (digital transformation) and AX (AI transformation)—that are actually urgent.”