North Korea's Benidorm-Inspired Resort Town Planned for May Opening, But Who's Going?

19.07.2024 - 10:41 / skift.com / Peden Doma Bhutia

North Korea plans to open its much-talked about Wonsan-Kalma coastal tourist zone within the next 12 months. The tourist site is set for an inauguration on May 2025, state media reported on Thursday.

The announcement came from North Korean leader Kim Jong Un, who visited the coastal site this week to inspect the progress. According to local reports, construction is in its final stages.

Kim Jong Un’s vision for Wonsan-Kalma is grand, complete with resorts equipped with international-class facilities, an amusement park, a leisure activity area, an airfield and ample parking space for incoming tourists.

The ambitious project, which began near the eastern port city of Wonsan in 2017, was initially slated for completion in mid-2018. The area is often likened to Spain’s Benidorm, a bustling seaside resort town.

The inspiration for the grand undertaking reportedly came after a delegation of North Korean bureaucrats visited Spain’s Costa Blanca. However, the project has faced significant hurdles. The Covid-19 pandemic and stringent UN sanctions caused delays due to a shortage of construction supplies. Despite these challenges, North Korea issued an order last year to restart construction at the site.

One crucial question remains: Who will this project cater to? With North Korea’s borders still closed to most foreign tourists, the potential market for the Wonsan-Kalma Coastal Tourist Zone is uncertain.

Earlier this year, a Vladivostok-based Russian tour agency, Vostok Intur, advertised a trip to North Korea, marking the first such inbound visit by vacationers in four years. Data from Russia’s Federal Security Service (FSB) shows that around 155 Russian tourists visited North Korea between January and March this year.

Before the pandemic, China was the primary source of international visitors to the country, accounting for 90% of the total tourist influx. In 2019, NK News estimated that approximately 350,000 Chinese tourists visited North Korea, generating around $175 million in revenue. However, with current border restrictions, future travel remains highly uncertain.

Tourism has historically been a vital source of foreign currency for North Korea. According to a 2021 report by 38 North, a publication of the Stimson Center, the tourism sector’s decline during the pandemic led to an estimated loss of over $175 million to the country’s finances.

In recent years travel to North Korea has become increasingly difficult for certain nationalities. In 2019, the United States revoked visa-free entry rights for foreigners who have visited North Korea since 2011.

The Biden administration has extended the ban on using U.S. passports for travel to North Korea, a policy renewed annually since 2017, now in place until August