Tourism Development Projects to Face Site Acquisition Checks... Stricter Review for National Subsidies

Amended Tourism Promotion Act Takes Effect on the 29th... Performance Evaluation System Introduced

Local Governments Required to Submit Site Acquisition and Investment Review Results When Applying for National Subsidies

Measures to Prevent Project Delays and Poor Budget Execution... Expert Consulting and Performance Management System to Be Established

Culture Ministry to Designate Dedicated Agency This Year... Improving Efficiency of Regional Tourism Development Investment

Going forward, local governments applying for national subsidies for tourism development projects will be required to submit information on the status of land acquisition for the project site and the results of the local government investment review. A management system will also be introduced to conduct performance evaluations during project implementation and prevent delays and poor budget execution through expert consulting.

The government has implemented an amendment to the Tourism Promotion Act, effective from the 29th, tightening eligibility requirements for local governments seeking state subsidies for tourism development projects and introducing a performance management system to prevent project delays and poor budget execution. The photo shows Jindo County officials visiting major tourism development sites in the county to review progress. Photo courtesy of Jindo County.

The Ministry of Culture, Sports and Tourism said amendments to the Tourism Promotion Act and its Enforcement Decree and Enforcement Rules, which include these measures, will take effect on the 29th.

The reform is intended to address recurring delays in regional tourism development projects and poor execution of national subsidies. It follows repeated criticism in the National Assembly and elsewhere of the annual underspending on tourism development projects.

The amended Tourism Promotion Act, promulgated on April 28, introduced performance evaluations for projects receiving local government subsidies and established a legal framework for managing projects from planning through completion.

First, the requirements for applying for national subsidies for tourism development projects will be tightened. Under the amended Enforcement Rules, local governments must submit documents related to securing the project site and the results of the local government investment review when applying for national funds.

The aim is to assess in advance whether the land needed for a project has been secured and whether the project is financially viable, thereby reducing the risk of allocating funds to projects that are not sufficiently prepared or of lengthy delays after work begins because of issues such as land acquisition.

A system for managing project implementation and performance will also be established. The amended Act provides for performance evaluations of projects receiving local government subsidies and authorizes the establishment and operation of a Comprehensive Tourism Development Information System to systematically manage and use tourism development information.

Consulting and training will also be provided to support the efficient operation of tourism development projects. Experts will be available to advise on projects from the planning stage through completion, helping address issues that arise during implementation and strengthen local governments' project management capabilities.

A dedicated agency will also be designated to handle performance management. The amended Enforcement Decree stipulates that an eligible agency must be a public institution or nonprofit corporation with a dedicated organization and professional staff capable of carrying out performance management.

The Ministry plans to designate a dedicated agency by the end of this year and fully implement the system. The reform will be pursued alongside policies to expand local governments' autonomy over tourism development projects. Starting this year, the Ministry shifted the budget-setting process for regional tourism development projects to allow local governments to set their own budgets.

This approach expands local governments' authority to plan projects and allocate budgets in line with local conditions and tourism demand, while strengthening oversight of the implementation and performance of projects funded with national money.

Kang Jeongwon, head of the Tourism Policy Office at the Ministry of Culture, Sports and Tourism, said, "Going forward, tourism development projects will be eligible for expert consulting from the planning stage through completion, and excessive project plans will be curbed, improving the efficiency of public investment. We will promptly designate a dedicated performance management agency by the end of this year to help establish the system."

This content was produced with the assistance of AI translation services.