The government is launching a campaign to secure fair prices and alternative lodging.
Thorough crackdowns on illegal practices by accommodation providers will be enforced.
[TV Daily Kim Ji-hyun Reporter] Ahead of BTS's Busan concert, some accommodation providers have been found to be raising prices excessively or unilaterally canceling reservations, sparking public outrage. In response, the government and local authorities have announced measures to curb this issue. The Korea Tourism Organization is teaming up with Busan City and Busan Tourism Association to hold a campaign for fair pricing in the Seomyeon area on June 8. They plan to visit local establishments, encouraging them to maintain reasonable pricing and provide courteous service, with the possibility of involving law enforcement if necessary. This initiative aims to prevent extreme price gouging during the BTS World Tour concert scheduled for June 12-13. A survey conducted by the Korea Consumer Agency and the Fair Trade Commission revealed that the average accommodation cost for one night on concert weekend (June 13-14) reaches 434,999 KRW, which is 2.4 times higher than normal weekend rates. Responding to the seriousness of this situation, President Lee Jae-myung warned on May 27 during his visit to Busan that continued price gouging could harm the city’s reputation. There have even been movements online discouraging visitors from coming to Busan. To address short-term accommodation shortages, the authorities have decided to secure alternative lodging. They are set to provide over 1,300 rooms in university dormitories, religious facilities, and public institution lodgings in Busan, Yangsan, and Changwon. Furthermore, a special crackdown team will operate to identify illegal practices, imposing administrative penalties such as correction orders and business suspensions on violators. Businesses reported through the 120 or 1330 complaint centers will be reported to the National Tax Service for tax evasion investigations. Hotels found to be overcharging will face increased penalties, with the score reduction in grade evaluations raised from a maximum of 10 to 30 points. Regulations regarding penalties will also be revised, eliminating the upper limit for rewards for reporting unfair practices, while providing up to 10% of the fines as a reward. The Korea Tourism Organization emphasized the importance of reasonable pricing and quality service during this globally spotlighted BTS concert for enhancing both regional brand value and national tourism competitiveness.
The upcoming BTS concert in Busan is drawing significant global attention, and in tandem, the issue of accommodation price gouging has come to the forefront. The measures being implemented by the Korea Tourism Organization and the government are crucial to providing high-quality tourism services. It is essential to consider that BTS has a vast and loyal fanbase, and any inconveniences they experience could adversely affect the long-term image of Busan as a tourist destination.
Price gouging adversely impacts the economy as well. Tourists may lose their enthusiasm for visiting Busan, which could deal a severe blow to the local economy. Since tourism is already a significant source of revenue for Busan, unreasonable pricing during large events like the BTS concert must be addressed. This will help establish Busan as a more attractive destination in the future.
Additionally, the government's heightened enforcement is expected to have a positive impact on the industry as a whole. Strong crackdowns on illegal practices will help restore order in the market and create a sustainable tourism environment through fair competition. The sustainable tourism model that the government and tourism industry work together to build will have a positive impact not only on Busan but also on overall tourism in South Korea.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: TVDaily
