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REPORT INDEX

  1. EXECUTIVE SUMMARY
  2. INTRODUCTION
  3. BACKGROUND KNOWLEDGE
  4. TARIFF BARRIERS
  5. NON-TARIFF BARRIERS
  6. INVESTMENTS
  7. TRADE IN SERVICES
  8. CONCLUSIONS
  9. LIST OF TABLES

GLOBAL TEAM

 

7. TRADE IN SERVICES

I. Analysis on Current Situation and Potential Benefits -- II. General Recommendations and Specific Concerns


II. General Recommendations and Specific Concerns

To induce tourists from Korea, the first thing to bear in mind is that there are still highly nationalistic groups, consumers’ associations, and even governmental influence that deters people from going abroad while the country is in economic depression. TABLE 9 shows that the number of Korean tourists going abroad has increased gradually, but plummeted in 1998 (17 at X axis in the table), when there was a financial crisis. During that period, the Korean government embarked on a travel austerity campaign and imposed a prohibition on tour operators established in Korea from advertising tour programs abroad. Tour operators were also confronted with unexpected tax investigations. Demonstrations took place at the airport aiming at persuading Korean passengers not to leave the country for pleasure.[1]

Thus, it is strongly recommended that the Chamber take some measures to ease this antipathy. First of all, the Chamber has to send representatives of Chilean tourism agencies to Korea and try to persuade them that tourism to Chile would also increase Korean export to Chile by familiarizing Koreans with Chileans.

Chilean tourism agencies and related governmental institutions also have to advertise Chilean tourist goods as well as Chile itself. Lower prices—including relatively lower airline fare compared to the distance—and beautiful scenery are to be emphasized in advertisement. Advertisements will help familiarize Koreans with an unknown country, Chile.

Advertisement is necessary not only for elimination of the general Korean concept that Chile is an unfamiliar, remotely located country, but also for moderation of antipathy on consumption in tourism abroad. Thus, negotiators also have to consider this cultural barrier and the fact that Korea is a highly nationalistic country. Stakeholders who represent different interests and values in Korea might turn out to be an important obstacle for achieving the FTA itself.


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Last updated: January 06, 2001. Copyright @ 2000 by GLOBAL Trade Consultants.

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