Ⅰ. Introduction

1. Background and Purpose of the Study

⧠ Both metropolitan and non-metropolitan areas are experiencing an increase in the proportion of the elderly population, while the gap in the proportion of the working-age population between metropolitan and non-metropolitan areas is gradually widening.

⧠ The combination of changes in population structure and structural differences in regional industries is exacerbating regional economic imbalances. The gap in the proportion of regional GDP between metropolitan and non-metropolitan areas, which was at a similar level in 2015, widened to 6.6 percentage points by 2023.

⧠ The tourism industry’s share in the global economy is increasing, and its positive ripple effects on the domestic economy are greater than the average of manufacturing and service industries, making it a viable alternative for revitalizing regional economies.

2. Current Status of Regional Tourism

⧠ Travel demand, which plummeted in 2020 due to COVID-19, is gradually recovering.

⧠ The proportion of travel demand in major regions such as Gyeonggi and Gangwon has increased, and differences in the pace of recovery have been observed across regions.

⧠ Examining the trends in regional tourism policies reveals that, since the 2000s, the primary agents of tourism development have shifted to local governments, with a continued trend of decentralizing tourism initiatives to regional authorities.

3. Research Content

⧠ Based on data, the necessity of revitalizing domestic regional tourism is presented, the impact of tourism on regional economies is analyzed using economic models, and strategies for revitalizing regional tourism are derived by synthesizing findings from case studies in Japan.

Ⅱ. Economic Impact of Regional Tourism Revitalization

1. Impact of Tourism on Regional Economies

⧠ This study employs the Fixed Effects Model, a panel regression analysis method, to examine the impact of tourism on revitalizing regional economies.

⧠ The analysis results indicate that the influx of tourists has a positive impact on various aspects of the regional economy, including Gross Regional Domestic Product (GRDP), the total number of businesses, the number of service industry establishments, and the number of employees in the service sector. This impact is more pronounced in non-metropolitan areas.

2. Case Analysis of the Effects of Regional Tourism Revitalization in Local Municipalities

⧠ Using input-output analysis, the study analyzed the ripple effects of tourist influx on regional economies. The results show significant ripple effects across regions, with relatively stronger perceived effects in smaller cities with lower populations.

⧠ Quantitative analysis at the municipal level revealed significant economic ripple effects of tourist influx, confirming that tourism substantially contributes to regional economic revitalization.

Ⅲ. Case of Regional Tourism Revitalization in Japan

1. Selection of Target Countries for Analysis

⧠ Japan is recognized as an advanced tourism powerhouse, demonstrating outstanding performance in the scale of inbound tourism and the competitiveness of its tourism industry.

⧠ These achievements are largely attributed to the government's proactive strategies for fostering the tourism industry.

⧠ Through the development of its tourism industry, Japan has expanded inbound tourism revenue, created jobs, and positioned tourism as a key driver of national economic growth.

⧠ Considering the geographical, cultural, and social similarities between Korea and Japan, benchmarking Japan's successful tourism development policies represents a rational strategy.

2. Current Status of Tourism in Japan

⧠ The number of inbound tourists to Japan has surged since 2014, attracting approximately 1.7 times more tourists than Korea by 2019, and has shown a rapid recovery even after the pandemic.

⧠ Since 2010, Japan has seen a significant increase in inbound tourists, leading to a substantial rise in tourism revenue, and achieving a surplus in its tourism balance starting in 2015.

⧠ Japan has successfully dispersed tourism demand, which was previously concentrated in Tokyo, by consistently developing regional tourism.

3. Tourism Governance in Japan

⧠ The Japan Tourism Agency, as a governmental tourism administrative body under the Ministry of Land, Infrastructure, Transport, and Tourism, is responsible for policy planning and implementation, while the Japan National Tourism Organization (JNTO), as a governmental tourism organization, carries out tourism promotion initiatives.

4. Tourism Policies in Japan

⧠ Japan has designated tourism as a key national industry and actively implemented tourism promotion policies through legal and institutional reforms.

⧠ To address the surge in inbound tourists, Japan's Tourism Agency introduced the "Japan DMO Candidate Corporation Registration System" in 2015.

5. Japan's Tourism Infrastructure, Products, and Services

⧠ Since 2013, Japan has actively expanded its list of Southeast Asian countries eligible for short-term visa-free entry to attract more foreign tourists.

⧠ By expanding tourism infrastructure, including airports and duty-free shops, Japan has improved accessibility to regional areas and enhanced their appeal as tourist destinations.

⧠ Traveler-friendly transportation infrastructure has reduced the barriers to accessing various regional tourist destinations.

⧠ Japan's tourism exemplifies the hub-and-spoke model, where the development of transportation networks and integrated tourism initiatives have facilitated the growth of smaller surrounding cities alongside major tourist hubs.

⧠ Japan leverages regional tourism resources to present visitors with specific and clear tourism themes, offering related tourism products and services.

IV. Strategies for Revitalizing Regional Tourism

1. Promoting Integrated Tourism Centered on Regional Clusters

⧠ To overcome the limitations of current inbound tourism, which is concentrated in a few regions such as Seoul and Busan, as well as domestic travel demand heavily focused on Gyeonggi and Gangwon, it is essential to establish regional tourism hubs.

2. Enhancing Regional Tourism Infrastructure

⧠ It is necessary to evaluate the effectiveness of K-ETA and consider measures such as easing entry requirements for inbound tourists or fully abolishing the authorization system.

⧠ Improving accessibility to non-metropolitan areas for foreign tourists requires diversifying regular international routes through the utilization of regional airports.

⧠ Convenient transportation infrastructure must be established to reduce the travel burden to regional tourist destinations.

⧠ Increasing the number of hotel rooms in regional areas and expanding the supply of high-quality accommodations can enhance the value of these areas as tourist destinations.

3. Developing Regional Tourism Products and Services

⧠ The key to developing tourism products that maximize the unique appeal of a region begins with identifying the "tourism resources" that the region possesses.

⧠ A collaborative strategy between the government and the private sector is necessary for developing regional tourism products and services.

4. Establishing a Collaborative Governance System Led by the Central Government

⧠ Since tourism is a complex industry interconnected with various sectors, systematic and close collaboration between the central government, local governments, and related ministries is essential.

⧠ It is necessary to specify the roles and scope of various regional tourism organizations and clearly define methods of collaboration among them.

⧠ Regional DMOs should serve as the central hub for collaboration among local tourism stakeholders and act as a bridge between the central government and regional entities.

⧠ To enhance the connectivity between national-level and local government data in the tourism sector, national standards for data collection methods and processes need to be established.

5. Systematizing Laws and Regulations for Tourism Revitalization

⧠ A systematic framework should be established to organize the fragmented statutory and non-statutory plans, paving the way for tourism promotion strategies based on structured laws and regulations.

⧠ To enable DMOs to grow as key players in regional tourism and as facilitators of central-local collaboration, long-term development plans and performance monitoring systems for DMOs must be established.

⧠ Furthermore, the impact of the tourism industry on national and regional economies should be quantified, and a national-level evaluation framework and measurement system for the tourism industry should be established to achieve specific goals.