KTO Spearheads Innovations
in Tourism Industry

Strives to position Korea as a global tourism powerhouse

Recently, the KTO, in a 2007 government evaluation on the business performance levels of fourteen government-invested organizations, was recognized for its efforts in innovating its management practices, which over the past year have produced a number of tangible results. The survey revealed that the KTO, which received 83.2 points (up 6.7 point from 76.5 points last year) out of 100, ranked third overall and improved more than any other organization.
The organization's improved performance was a direct result of the KTO's push to develop its management practices as well as through the following three innovations: improved concepts regarding tourism, a project implementation system and the changing of the ways of work.
The KTO has striven to position itself as a major contributor to national growth by developing and advocating the scientific and future-oriented concepts of "Tourism Technology, "Neo Tourism"and "Intrabound Tourism."(Defined below.)
The year 2006 was a significant year for the KTO when the organization underwent dramatic innovations in the way it conducted its work. First, the organization created a Strategic Management System (SMS) designed to support decision-making and management innovation, as well as an overall crisis management system, designed to reduce both financial risks and such non-financial risks like marketing and inter-Korean tourism. SMS also laid the groundwork for an effective management system by completing the design of Tourism Technology Marketing System (TTMS) and Tourism Development System (TDS).
The KTO also changed the way it worked in order to overcome uncertainties in the tourism industry, including a strong Korean won, the North Korean nuclear issue and the bird flu epidemic.
The organization also tailored marketing activities to overseas markets by activating an overall crisis management system, and explored new areas of the Korean Wave by organizing such new, large-scale events as Korea in Motion, which was based on the current breakdancing craze and such nonverbal performances as Nanta and Jump.
Furthermore, it developed new tourist products by combining tourism with other industries, including the medical, educational and entertain fields.
Furthermore, the KTO, having changed the process for attracting global conferences and conventions, won the right to host 15 extraordinary conventions over the past year, including the 2010 ITS(Intelligent Traffic System) Korea. This accomplishment helped contribute to Korea becoming the 14th most popular convention destination in the world and the second most popular in Asia.
Thanks to all of the abovementioned efforts, the KTO has surpassed its target of attracting 6 million inbound foreign tourists for the second straight year. Internally, the organization chalked up a 784 percent surge in operating income and a 219 percent jump in net profit, the highest increase since the Asian financial crisis.
But efforts to boost international visitor numbers were not the only tasks the KTO set out to do. The organization also invigorated intrabound tourism by tapping into and introducing new tourist attractions through tourism promotion drives like the "Where is This?"domestic tourism campaign.
Capitalizing on management innovations the KTO made last year, the organization is striving to create new standards in the tourism industry and implement projects based on mid- and long-term plans in order to help realize its goal of boosting intrabound travel and attracting 10 million inbound foreign visitors by 2010.
This past April, in order to boost the image of the Korean tourism industry the KTO introduced Korea's first tourism brand, "Korea, Sparkling,"
The KTO hopes to penetrate its target markets by introducing, in addition to its new brand, a tourist attraction target system and transforming 25 overseas branches into "Korea Plazas,"which are designed to help visitors get a small taste of Korea. The final results of this plan are expected to aid in the KTO's 2007 goal of attracting 7 million inbound tourists.
Korea Plazas have opened in Fukuoka, Sendai and Guangzhou, and four more overseas branches (Bangkok, Hong Kong, Nagoya and Singapore) will follow suit this year.
What is more, the KTO plans to increase marketing activities for provincial convention bureaus, convention centers and hotels by strengthening the role of the Korea Convention Bureau. It plans to take comprehensive measures to invigorate the domestic convention industry, including the one designed to win bids for such international meetings as the 22nd World Congress of Dermatology and the 2013 World Energy Council. The KTO also hopes to attract more inbound foreign visitors by expanding the horizons of the Korean wave and holding cultural festivals like the 2007 B-Boy World Championship and the 2007 Korea in Motion.
In an effort to boost intrabound travel across the nation, the KTO will continue to explore new tourist attractions through such campaigns as the "Where is This?"domestic tourism campaign, and as part of its bid to solve the high cost of accommodation in Korea,
will certify 200 mid-priced accommodation facilities under the brand "Goodstay"by 2009. The KTO will also increase the number of BENIKEA (Best Night in Korea) Hotels (a mid-price tourist hotel chain developed by the KTO) to 30 by 2008 in order to offer additional affordable accommodations for foreign visitors.
Corresponding to Korea's standing as an IT powerhouse, the KTO will beef up its mobile tourist information service, Location Based Service (LBS), while diversifying other technology-centered services, including terrestrial digital multimedia broadcasting (DMB) and mobile Internet service, WiBro. The nationwide tourist information service network will be further developed to offer tourist information in a swift and precise manner. The tourist information telephone service, 1330, which is available 24 hours a day in four languages (Korean, English, Japanese and Chinese), will also be revamped and updated.
The KTO is also looking to develop local tourist resources to balance national and regional tourism development. In cooperation with local government authorities, it is striving to develop mammoth tourist complexes like the Hwawon Tourist Resort Complex in Haenam, Mt. Naejangsan Resort and the second tourist complex in Jeju Island.
By recognizing the tourism industry as a major contributor to economic growth in the 21st century, one can see the positive effects that promoting and developing this emerging industry will have on the low growth rate of the domestic economy. The KTO will continue to push for projects that encourage environmental sustainability, tourism development, and increased competitiveness of the tourism industry, and it will continue to do its best in positioning Korea as a major tourism destination.
Tourism Technology is a term that encompasses all social, cultural, managerial, and value-added activities of the tourism industry. It incorporates and encourages technological advancements and economic development related to tourism.
Neo Tourism is a term that describes the new aspects of such changes and diversification of tourism. It incorporates concepts such as "sustainable tourism,"which puts an emphasis on environmental sustainability, and "Special Interest Tourism"(SIT), which reflects the postmodern social phenomenon of travelers seeking out unique experiences when traveling.
Intrabound Tourism describes the activities, measures and policies taken by countries of the world to develop and nurture their domestic tourism markets, and it also refers to domestic travel by citizens of a particular country. By adopting this definition, tourism can be classified into three categories, inbound tourism, outbound tourism and intrabound tourism. nw

Korea Tourism Organization Executive Vice President Kang Kwang-ho (right photo). Korea's tourism brand, "Korea, Sparkling"is presented during the 2007 ASTA International Destination Expo (IDE) held in Jeju on March 25-29, 2007.

A scene from the 2006 Hallyu Drama Festival

A performance takes place to celebrate transforming the KTO's Guangzhou office into Korea Plaza.

A foreign breakdance troupe B-Boy performs during a championship organized by the KTO in June 2007.