On August 13, the North Korean Workers&#39; Party newspaper Rodong Sinmun reported that students from the Mangyongdae Revolutionary School and Chilgol Revolutionary School visited the Wonsan Kalma Coastal Tourist Zone on August 9 and had an enjoyable time, promoting the newly constructed Kalma Zone / Rodong Sinmun

North Korea is ramping up its tourism industry, spearheaded by the recently completed Wonsan Kalma Coastal Tourist Zone. Analysts reported on August 15 that ensuring political and security stability is paramount if North Korea's tourism sector is to contribute to building a peace momentum on the Korean Peninsula.

 In a report titled, <em>The Rise of North Korea's Tourism Industry and South Korea's Policy Direction</em>, Choi Eun-joo, a researcher at The Sejong Institute, analyzed that the emergence of North Korea's tourism industry has dual implications for the changing dynamics on the peninsula.

 Choi noted that while North Korea's tourism policy could serve as a new avenue for enhancing inter-Korean and North Korea-U.S. relations, if South Korea's policy response lags behind, North Korea's rapid tourism development could outpace South Korea, potentially enabling neighboring countries to gain a foothold in both diplomatic and economic spheres.

 She pointed to North Korea's strengthened tourism cooperation with China and Russia, and the possibility that the U.S. might leverage North Korean tourist zone development as a bargaining chip in negotiations.

 Indeed, as international sanctions have hindered normal trade and investment cooperation, North Korea has increasingly turned to tourism as a channel for expanding economic exchanges with friendly nations.

 Prior to the COVID-19 pandemic in 2019, an estimated 300,000 Chinese tourists visited North Korea. Recently, tourism exchanges&mdash;which had been suspended due to the pandemic&mdash;have resumed through Russia. North Korea has also begun constructing new tourist sites across the country, underscoring the government's keen interest in this sector.

 Choi views the tourism industry as both a potential opportunity and a challenge in North Korea-U.S. relations.

 She explained that investment cooperation proposals for tourist zone development could provide North Korea with economic opportunities while also serving as a negotiation tool that imposes certain constraints. If these cooperation efforts materialize, North Korea stands to gain substantial benefits such as foreign currency income and infrastructure modernization. She further noted that, however, if cooperation stalls or conditions are not met, North Korea risks losing anticipated tourism revenues and developmental benefits."

 Looking ahead, Choi suggested that if discussions on tourism allowances and investment cooperation arise in future North Korea-U.S. contacts, there is a possibility of a small deal in which North Korea partially accepts U.S. demands in exchange for the U.S. permitting tourism projects or tacitly approving investment support.

 However, this scenario hinges on the successful activation of North Korea's tourism sector. Choi emphasized that genuine exchanges and cooperation in tourism require prior political and security stability, as foreign tourists might perceive the situation on the Korean Peninsula as a potential risk factor.

The image of Mount Kumgang as promoted by the Rodong Sinmun / Rodong Sinmun

Nevertheless, Choi predicts that as North Korea prioritizes cooperation with China and Russia, the resumption of tourism with South Korea may take a back seat.

 In this context, she believes that the South Korean government should prepare specific, feasible plans within the bounds of international sanctions, such as tourism linked with third countries or special visit programs with strong humanitarian and cultural elements.

 Choi advised that the South Korean government should maintain a consistent message while emphasizing that the resumption of tourism transcends mere economic gains; it can serve as a crucial foundation for expanding cultural and interpersonal exchanges and building mutual trust.

 She added that tourism exchanges should not be viewed as one-off events, but rather as part of a long-term process for both Koreas to build trust. Further noting that it needs to create incentives and safety measures to encourage North Korea to gradually engage in various exchanges, including tourism.

 Choi suggested that the government should develop a roadmap that includes tourism exchange projects capable of swift implementation if inter-Korean relations improve. For instance, considering Kim Jong Un's announcement about hosting various international events at the Kalma tourist resort, South Korea should proactively design themed programs and prepare solutions for potential issues that may arise during implementation.

 Secondly, she highlighted the need to mitigate factors that deter foreign tourists, such as easing political and military tensions, building trust between North and South Korea, establishing political and institutional credibility across the tourism sector, and coordinating with the international community in advance to avoid controversies over sanctions violations related to North Korean tourism.

 Choi emphasized that, as they learned from the suspension of Mount Kumgang tourism, it must concretely discuss and institutionalize tourist safety guarantees. Further noting that in the long term, it should strengthen the legal protection framework for overseas investors, including those from South Korea.

North Korea is ramping up its tourism industry, spearheaded by the recently completed Wons …

Report Says North Korea’s Tourism Drive Could Reshape Peninsula Dynamics