Hyun hints at easing rules on hotel construction

Strategy and Finance Minister Hyun Oh-seok indicated Wednesday that the government will ease regulations on hotel construction to boost the tourism industry.

“The tourism industry is very effective in boosting the domestic economy and creating jobs. Currently, the number of foreign tourists is rising thanks to the growing popularity of K-pop, dramas and movies,” Hyun said during a meeting with ministers.

“To develop the country into a more attractive tourist destination, we have to increase tourism infrastructure, such as building lodgings and boosting the resort industry,” he said.

Hyun said the country should discuss revising the Tourism Promotion Law, which includes easing regulations on construction of tourist hotels.

Whether to allow more tourist hotels is a key topic in the Park Geun-hye administration’s deregulation drive, after an executive of a hotel development company complained last month that he cannot build a tourist hotel due to tough regulations.

The company has a site to build a hotel near Dangsan Elementary School in Seoul, but the law stipulates that to build a hotel within a 200-meter radius of a school, its plans must be reviewed by the school’s environment board. It is usually difficult to get such approval because parents do not want a hotel near their children’s schools.

While those demanding deregulation stress that allowing such hotels will boost the tourism industry and create more jobs, those opposing the hotels say that it will negatively affect the surroundings for students.

The culture and tourism ministry is seeking a revision of the law to ease regulation on hotel construction, but are facing criticism by NGOs.

At the economic ministers’ meeting, Hyun said that the economy is showing signs of recovery.

“However, with uncertainties of the global economy such as the withdrawing of quantitative easing in the United States, the possible slowdown of the Chinese economy and geopolitical risks such as the crisis in Ukraine, recovery in the private sector, including investment, isn’t very solid yet,” he said.

Adding that people are not really feeling that the economy is recovering yet, he said that policy should focus on making the economic recovery “felt” by people by creating jobs.

He said the government will increase spending in the second quarter, and expand financing for small- and medium-sized businesses.

He added that the administration will continue executing plans to increase jobs for women and young people. By Yoon Ja-young The korea times