Korean agents tighten belts
As the weak local currency and high oil prices curb Koreans’ demand for overseas travel, travel agencies are tightening their belts, downsizing or overhauling operations, the Korea Herald has reported.
Tour agencies, which are reeling from the airfare hike due to soaring fuel costs, have been dealt a further blow by the recent rapid fall of the Korean won.
The local currency slumped to a fresh four-year low against the dollar on Tuesday, the report said. A strong dollar means that Koreans travelling overseas have to spend more on hotel stays, meals and other expenses.
“The tourism industry has a crisis every five years – the Asian financial crisis in 1998, the SARS epidemic in 2003 and the economic downturn now. The sector has entered a downward trend, but we believe we will be able to recover because the cycle repeats itself,” Jung Ki-yun, a spokesperson with Hana Tour, was quoted saying.
On 1 September, a top travel agency reshuffled the company.
Mode Tour, Korea’s no. 2 travel agency, was quoted as introducing a short-term leave system, in which employees are allowed to leave for one or two months without pay.
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