[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, as well as 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 described it as a “plan that lives for today and ignores tomorrow.” Multiple officials from local government tourism departments pointed out, “Shouldn’t there at least be prior discussion when abolishing projects for which the regions also bear the budgetary burden?” They added, “The government is heavily promoting only 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 tourism budget for next year includes 227.2 billion won in new funding for projects 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 “Worker Vacation Support,” the “Love Your Region Vacation Support” program (which offers half-price travel), “stay-based regional tourism” (including sports and nighttime tourism), “traditional market tourism,” and “walking tours”—were also 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. The “Korean-Style Regional Tourism Revitalization” initiative—which includes cross-industry collaboration, pet-friendly travel, and hotspot guides—saw its budget reduced by over 16 billion won as most of its sub-programs were abolished or transferred to other departments. Budgets for specific projects under “Creating a Foundation for Attracting Foreign Visitors”—including “Smart Tourism,” the K-Tourism Cooperation Group, and shopping tourism—as well as “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 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—amounted to 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 champions “regional tourism revitalization” and “expansion of 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, more quickly. The CEO of a travel agency that recently hosted an incentive tour for 80 visitors to Korea—with an average spending per person exceeding 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 categories 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 practicality and future-readiness.
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 Metropolitan Tourism Development” initiative, which is set to receive 3 trillion won over a 10-year period starting in 2024.

Cities linked to the mega-tourism zones—including Busan, Andong, Jeonju, Mokpo, and Gangneung—have been re-included, having previously received 250 billion won in national funding over six years through last year as part of initiatives to designate them as “International Tourism Cities” and “Regional Tourism Hub Cities.” Gyeongju and Busan (Haeundae), which were selected as “Global Tourism Special Zones” this year and will receive 3 billion won in national funding over two years, are also included in this initiative. Critics point out that injecting new funding into areas where tourism infrastructure and content development are already underway through separate national projects has blurred the roles and distinctions between these initiatives.
◇Construction of Large Hotels in Regional Areas… Utilizing Vacant Buildings Would Be More Effective
Concerns have been raised that the “Regional Love Vacation Support” program—which targets areas experiencing population decline (or designated as areas of concern) and has been allocated 22.8 billion won this year, a 3.5-fold increase from last 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 revision was 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 population-declining region 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” have been criticized for 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,” and pointed out, “It is a matter that warrants reconsideration that long-term future investments—such as DX (digital transformation) and AX (AI transformation)—which are actually urgent, have been cut while the focus remains skewed toward increasing tourist numbers and short-term consumption.”