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North Korea: North Korea Tourism Profile 2012

2012/03/22

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North Korea Tourism Profile 2012

Analyse of the sector 07/12/2010
Two of North Korea’s Most Popular Tourism Areas Remain Closed in 2009
Prior to 2008, North Korea offered two popular special tourism regions on its southern border with South Korea, namely the Kumgang Tourism Region and the Kaesong Industrial Zone, which it used to earn much needed revenue. In 2008, a South Korean woman was shot in the Kumgang Tourism Region, and since then, other than a handful of family reunions, the Kumgang Tourism Region has been closed. Meanwhile the Kaesong Industrial Zone was closed for all travel other than that required for the operation of the factories.
 
Competition Increases on the Pyongyang to Beijing Route
 
After several years of being the only airline flying internationally in and out of North Korea, Air Koryo finally received some competition in 2008 when Air China Ltd started flying between Beijing and Pyongyang. Air China Ltd’s strategy is to fly on days when Air Koryo does not fly and the company places much emphasis on its superior safety record. In addition to providing competition on the Pyongyang to Beijing route, Air China Ltd’s membership of the Star Alliance has also served to make North Korea potentially more accessible to travellers from around the world.
 
Ryagyong Hotel Undergoes Renovation
 
Pyongyang is full of large hotels that are virtually empty of tourists. Despite this, almost two decades after being abandoned halfway through construction, the giant Ryagyong Hotel, one of the tallest buildings in the world, is beginning to undergo renovations. This is being facilitated by the Egyptian mobile phone company, Orascom, as part of a deal to get a network contract in North Korea. It is uncertain whether Ryagyong Hotel will welcome guests when completed, or whether this is simply a means of correcting what has become a national embarrassment.
 
Hyundai Asan Corp Strives to Get Tourism Back on Track
 
Hyundai Asan Corp, a company with a mission to assist in the reunification of the two Koreas and which is consequently behind the two special tourism regions (the Kumgang Tourism Region and Kaesong Industrial Zone), is determined to resume tourism in these zones. It has put in a lot of effort and has even held meetings and come to an agreement with the North Korean President Kim Jong-Il. Such an agreement needs the approval of the South Korean Government however, which refuses to allow tourism to resume until there is an investigation into the 2008 shooting of a South Korean woman in the Kumgang Tourism Region and more transparency as to where North Korea’s tourism revenue goes.
 
Mount Baekdu Is Set to Be a Potential Major Tourist Attraction
 
One region which has plenty of potential as a tourist attraction and is a topic of negotiation between North and South Korea and Hyundai Asan Corp is Mount Baekdu, a mountain of great cultural importance to all Koreans. If South Koreans are allowed to travel by plane into North Korea and visit Mount Baekdu, it would significantly revitalise the North Korean tourism industry; however, the infrastructure and political issues involved will make this project a challenge.