The analysis of revenue, financial operation, development and management of manpower and economic efficiency coming from overseas cooperation with the domestic tourist hotel industry shows the following problems.
1. Uneven distribution of tourist hot...
The analysis of revenue, financial operation, development and management of manpower and economic efficiency coming from overseas cooperation with the domestic tourist hotel industry shows the following problems.
1. Uneven distribution of tourist hotels causes the shortening of tour visitors' length of stay and incurs additional expenses of business promotion activities.
2. Operation of amenity facilities focused on native people encourages the trend of consumption rather than foreign currency earning.
3. Depreciation cost and financial cost overburden most tourist hotels except for some first-class hotels in big cities.
4. Employment of unqualified personnel increased the ratio of personnel with less than 3-year working experience to 74% and the seperation rate to 17-18%, which eventually brought about inefficient man-power management.
This further created additional burden of labor cost and reduced coefficiency of hotel utilization; deficit operation
5. Liberalization of investment and extension of technology introduction period are expected to increase foreign investment rate and restrict autonomous management. Remittance of overseas investment returns and increased expenditure for royalty might give rise to continuous efflux of foreign currency.
To prevent the loss of capital investment and enhance a foreign exchange earning rate by effective manpower management and operation, the Government in advised to take the following measures.
1. Construction of tourist hotels in such cities as adjoining tourist resorts to preserve tourist resources; natural resources and folk resources.
2. Adoption of institutional complementary measures favoring foreign tourist-centering sales in taxation and financial support to dampen down native people's consumption of tax-exempted imports for foreign tourists and to increase foreign currency earnings.
3. Strengthening administrative guidelines for the employment of qualified personnel to induce their continuous service and complementing the system of expert training and its qualification test, which will lead to the alleviation of deficit operation to a great extent.
4. Utilization of officetels as lodgings for athletes, which are now under construction as a part of city redevelopment programs rather than the construction of new tourist hotels to prevent oversupply of tourist hotels after the 1988 Seoul Olympics.
5. Obligation of the use of domestic raw materials to a certain degree as a condition for the construction of joint venture hotels to prevent the efflux of foreign currency that is caused by the import of overseas raw materials. Preference in taxation and financial support to foreign businesses participating in tourist resort development.