[Yanolja Research Insights Vol. 37] 20 Million Tourists, Still Just Seoul?

20 Million Tourists, Still Just Seoul?

Why Korea Must Rethink Domestic Tourism

“Korea has many hidden gems.”

Yet the reality tells a different story.

Despite reaching 20 million inbound tourists, most visits remain heavily concentrated in Seoul. At the same time, regional destinations struggle with low demand, creating a structural imbalance in Korea’s tourism ecosystem.

Wait—Are You Familiar with These Key Concepts?

Before proceeding, it is essential to clarify several core concepts that underpin contemporary tourism strategy:

In this issue, we examine:

✅ The Hub-and-Spoke Model: A spatial distribution strategy designed to redistribute tourist flows from overconcentrated urban cores(=HUBS) to underutilized regional destinations(=SPOKES).

✅ The Overcapacity Problem: How congestion in Seoul and underutilization in regional areas create structural imbalances in the tourism economy.

✅ Gateway vs. Connector Cities: Differentiating the functional roles of hub cities (gateways) and peripheral cities (connectors) within a national tourism system.

✅ The Shift Toward Software-Driven Competitiveness: Moving beyond physical infrastructure to emphasize mobility systems, content development, and performance-based management.

The Reality of Tourism Concentration

• The "Seoul-Centric" Problem: Despite attracting approximately 20 million international visitors, tourist activity remains overwhelmingly concentrated in Seoul.
• The Regional Underutilization Problem: In contrast to Seoul’s congestion, regional areas face persistent underutilization of tourism assets and a contraction of the local small-business ecosystem.
• The Imperative for Rebalancing: Addressing these structural disparities requires the activation of regional resources to restore balance and facilitate sustainable job creation across local economies.

The Hub-and-Spoke Framework

• Hub Cities (Gateways): Primary nodes within the national tourism system, such as Seoul or Busan, equipped with major air and maritime gateways and serving as origin points for the outward distribution of tourist flows.
• Spoke Cities (Connectors): Secondary destinations that absorb redistributed demand by offering differentiated, place-based experiences—such as natural, historical, or entertainment assets—that are not substitutable within hub cities.
• The Metaphor: Much like a bicycle wheel, the central axle (hub) must be effectively connected to the spokes to ensure the continuous circulation of tourist flows and the sustained functioning of the tourism economy.

Hub Cities (Gateways): What Defines Them?

Hub cities are the primary gateways of a tourism system, where international demand is first concentrated. They are typically equipped with major airports or seaports, allowing them to absorb a high volume of inbound visitors while building strong destination recognition.

• Stand-Alone Hub: A single gateway city with concentrated infrastructure and strong global recognition, directly driving inbound demand.
• Regional Hub: A cluster of interconnected cities that collectively function as a large-scale destination, expanding inbound demand through regional integration.

Spoke Cities (Connectors): What Defines Them?

• Core Role: Cities connected to a hub that absorb and manage redistributed (spillover) tourist demand.
• Differentiation: Compete not on scale, but on distinct, place-based experiences that are not substitutable in hub cities.
• Experience Types:
• Nature-oriented
• Entertainment-oriented
• Historical & Cultural
• Proximity-Based
• Spatial Logic: Often located in close proximity to hub cities, enabling short-distance travel and seamless connectivity.

Why the Hub-and-Spoke Model Matters

Expanding beyond Seoul is not simply about geography—it is about restructuring how tourism demand is distributed across the system.

• Resolving Overtourism: Redistributes tourist flows from overconcentrated hubs to regional destinations, alleviating congestion while activating underutilized areas.
• Enhancing Travel Satisfaction: Improves network efficiency and expands experience options, enabling more seamless and diversified travel across multiple destinations.
• Advancing Industry Structure: Shifts the tourism system from zero-sum competition toward a complementary network, where hubs and regions jointly contribute to overall market growth.

Inbound tourism cannot rely on a single city.
It must operate as a connected system.

The hub-and-spoke model is not an option,
but a structural necessity.

Link the gateways.
Activate the regions.

Turn fragmented destinations
into an integrated tourism network.

That is how inbound tourism scales—
not by concentration, but by connection.

For more details, check out Yanolja Research Insights Vol. 37: Developing Inbound Tourism Zones Based on Social Network Analysis.

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