Donghae in Gangwon Province is relaunching its group tourist incentive program, which had been suspended after its first-half budget ran out, to attract visitors during the autumn travel peak season. The program resumed Tuesday.
The city is also raising the Donghae Pay incentive rate from 10 percent to 15 percent for the month of September to stimulate local spending and boost sales for small businesses.
According to the city, the program disbursed 91.2 million won ($66,600) last year, drawing 9,883 group visitors, and allocated 50 million won in the first half of this year to bring in 5,067 visitors. The first-half budget was exhausted by late April, forcing the program to close temporarily.
Under the revived incentive, groups of 20 or more passengers per bus are eligible for support. Qualifying day-trip groups receive 200,000 won per bus, while overnight groups receive 400,000 won per bus. The program will run until the budget is depleted.
The city plans to encourage tour operators to build itineraries linking major attractions — including the Mukho waterfront district, Mureung Byeoryucheonji and the Chuam area — and aims to attract visitors who stay and spend locally on dining, accommodation and tourist facilities, rather than simply passing through.
"We confirmed consistent demand by attracting about 5,000 group tourists in the first half of this year, following last year's results," said Lee Jin-hwa, head of the city's tourism division. "We will work to expand autumn tourist arrivals and provide real support to local businesses."
On the Donghae Pay side, residents who charge the monthly maximum of 500,000 won can receive up to 75,000 won in incentives. Payments made at any of the 57 "good-price" establishments registered in the city earn an additional 5 percent, bringing the total benefit to as much as 20 percent — a measure the city expects will ease household costs and drive more spending at neighborhood shops.
Usage of Donghae Pay has been growing consistently. The city originally planned to issue 70 billion won worth of the local currency this year but expanded the target to 100 billion won in July as demand increased.
September typically sees a rise in consumer spending ahead of Chuseok, and the city has local events scheduled, including the 39th Donghae Mureung Festival. The city expects the expanded incentives to stimulate local spending and inject energy into neighborhood commercial districts.
The city is also broadening the reach of its local currency. On Friday, it will hold an information session for relevant city departments and local public enterprises on the Donghae Pay policy subsidy payment system, explaining disbursement procedures and how to use the platform, with the goal of channeling more policy support payments through Donghae Pay.
At major tourist sites including Mureung Valley and Cheongok Golden Bat Cave, the city will use paper-form local currency vouchers to channel visitor spending into the local economy, reinforcing a virtuous cycle of local consumption in tandem with the mobile and card-based versions of Donghae Pay.
"We will ensure Donghae Pay delivers real benefits to residents and translates into higher sales for small business owners, serving as a tool for a virtuous local economic cycle," said Lee Jae-guk, head of the city's economic affairs division. "We will do our utmost to operate the September incentive expansion in a way that brings vitality to local commercial districts."
abc@heraldcorp.com
