South Korea’s tourism industry reiterates opposition to proposed casino levy increase and licence reform
Twelve tourism organisations have urged the government to withdraw plans to raise casino contributions to the Tourism Promotion and Development Fund and introduce five-year licence renewals.
South Korea.- Opposition is growing to the South Korean government’s proposal to increase the maximum casino levy contributions to the Tourism Promotion and Development Fund and introduce a five-year casino licence renewal system. A joint statement has been issued by 12 organisations, including the Korea Casino Association, the Korea Tourism Association, the Korea Hotel Association and the Korea Association of Travel Agents.
The groups called on the Ministry of Culture, Sports and Tourism to withdraw the proposed reforms, arguing they would place additional pressure on an industry that is still recovering from the impact of the Covid-19 pandemic. The organisations also criticised the proposal to renew casino licences every five years, arguing that frequent licence reviews create a source of uncertainty that could discourage new investment and foreign capital.
Under the government’s proposal, the maximum contribution rate paid by casino operators to the Tourism Promotion and Development Fund would increase from 10 per cent to 15 per cent of revenue. Industry representatives note that since the levy is based on revenue rather than profit, operators must continue making payments even when they report losses. They noted that around half of South Korea’s casino operators have recorded operating losses over the past decade, with smaller businesses expected to be the most affected.
The industry also warned that harsher domestic conditions could weaken South Korea’s position against neighbouring markets such as Macau, Singapore, the Philippines and soon Japan by reducing profitability and making the country less attractive for investment.
