The spread of MERS-CoV and its impact on the tourism industry
|Author||Park Munsu, Lee Donghui||Date||2015.06.25||Issue No||618|
The outbreak of MERS is expected to have negative impacts not only on the tourism industry but also related businesses such as the food, lodging, transportation, entertainment, and industries.
We present the results of analyzing the decline in money spent by tourists under the following scenarios. There would be a minimum reduction of 2.5612 trillion won to a maximum of 4.6366 trillion won if the MERS situation were to continue for three months (from June to August). If the situation were to continue for five months (from June to October), the decline in tourists’ expenditure would range from 4.2988 to 7.5616 trillion won.
● The reduction in production of the entire industry would range from from 4.4571 to 8.1046 trillion won if the impact of MERS were to persist for three months, and from 7.4726 to 13.1967 trillion won if the impact continues for five months.
● According to these scenarios, it was analyzed that the reduction in added values of the entire industry would be from 2.1256 to 3.777 trillion won if the impact of MERS persists for three months, and 3.5843 to 6.201 trillion won for five months
* If the impact of MERS persists for three months, such ripple effects would be equivalent to 0.14-0.25% of the GDP (about 1,485 trillion won) and to 0.24-0.42% if it continues for five months
It is needed to prepare for product development and marketing to swiftly recover the demand from tourists visiting Korea after the end of the MERS outbreak, as well as tailor-made promotional marketing businesses reflecting the characteristics of each region
● As part of enhancing the current environment for foreign visitors, easing various regulations and developing new convergence tourism products will make tourist attractions more appealing to tourists.