Bad memories of the poll tax

The government must dismantle the resilient structure of the poll tax.

HAN WOO-DUKThe author is a senior reporter of the China Lab. This is how the article began at the time. “Earlier this month, a travel agency [in Korea] received 20 group tourists from a local travel agency in Harbin, Heilongjiang. It was a five-day, four-night trip to Seoul and Jeju. The price for the travel package was 900 yuan ($124). It is far less than the price of a round-trip flight between Harbin and Seoul.”

How was that possible? The article explains, “This is because of a kind of poll tax. Normally, the travel agency in Korea should receive tour expenses, including accommodation, meals and transportation fees, from the Chinese travel agency in Harbin. But it’s the other way around. The Korean travel agency had to give 300 yuan to the Chinese agency per tourist. They are bringing in Chinese tourists with money. That’s how the dumping tourism begins.” This is an article on the JoongAng Ilbo’s March 16, 2016 issue. It was titled “50,000 won per Chinese tourist ... A modern-day poll tax.” This used to be the case before China issued a group tour ban to Korea. At that time, dumping tourism was rampant. The tour guides drove them to the designated shopping centers from dawn. There were also guides who gave misinformation on Korea. They said that Korea was a subordinate state of the United States.

It was a structural problem. The Korean tourism industry only thought about how to empty the pockets of Chinese tourists. Korea’s travel agencies were played by Chinese agencies and had no choice but to sell dumping products. Government officials who were supposed to manage the market were only interested in the number of foreign tourists. This is the background of how the “tax per head” was established. China has decided to allow group tours to Korea again, which have been banned for over six years. Related industries are excited about an upcoming boom. But I have concerns. Unless the dumping structure changes, the ghost of the “per-head fee” will be revived.

It is not that the authorities were sitting on the problem. The Ministry of Culture, Sports and Tourism tried to shorten the permission cycle for exclusive travel agencies to one year and implement a system to expel dumping agencies from the market. There were plans to overhaul the half-baked guide system. It also looked into the illegal currency exchange by some travel agencies. But all these moves were scrapped as the Thaad disputes ended the inflow of Chinese tourists. At least the measures of the time should be revived. The dumping structure hurts the tourism industry and Korea’s image. Also, the anti-Chinese sentiment is high in Korea now. Distorted Chinese tourism could lead to friction with Koreans and cause an unnecessary emotional conflict. The government must dismantle the resilient structure of the poll tax.