North Korean Economy Watch

By Michael Rank

North Korea is spreading its net wider in its quest to attract more tourists from China, and now has its eye on the southern province of Guangdong as well as Shanghai.

A Chinese website (link here) reports that a delegation of North Korean travel agents is expected to travel to Guangzhou next month and that local tour operators in Guangzhou and nearby Shenzhen, on the Hong Kong border, are eager to do business.

Tourists will have a choice of two routes to North Korea – they can either fly to Shenyang or Dalian in northeast China and then take the train to Pyongyang via Dandong, or they can fly to Pyongyang via Shenyang. It puts the price at 5,000 yuan ($730) but doesn’t say how many days the tours last or any further details. It says the main attractions will be the usual ones of Pyongyang, the DMZ at Panmunjom, the Myohyang mountains and the annual Arirang pageant.

As NKEW reported in July, North Korea is also targeting Shanghai as a source of tourism revenue, and there is further talk of charter flights from Qingdao in Shandong province to Pyongyang.

Quite apart from the question of how many Chinese are likely to be tempted to visit a Cultural Revolution-type theme park like North Korea, there are also bureaucratic hurdles to overcome. North Korea does not have “approved destination status” for Chinese tourists, which means in theory at least that travel there is restricted to business groups and official delegations. (Incidentally, South Korea doesn’t seem to be an ADS country either).

As the website notes, “An important issue within ADS is to avoid possible illegal immigration through tourism channels. All tourism groups travelling within the ADS framework are supposed to be monitored by both Chinese and foreign authorities to ensure they return to China. Embassies and consulates apply different methods to monitor the return of the Chinese tourists. Whenever a tourism group member does not return to China, the local travel agency is held responsible and sanctions are applied.” Not that there is much likelihood of Chinese tourists defecting to North Korea.

Furthermore, China is encouraging tourists to counter the world recession by spending their money at home, and although this is China-DPRK year marking the 60th anniversary of diplomatic relations, a further obstacle is the fact that Chinese citizens now need a passport to travel there, not just a border pass that was all that was needed previously to cross into the country at Dandong by train.

Nick Bonner of Koryo Tours says: “We have noticed a sharp drop in Chinese tourists visiting DPRK in comparison to this time last year – even though the spectacle of the 100,000 strong performance of the mass games is still going on and has been extended to October 15th.

“I think next year Chinese tourism will be coming back strong – there is a certain ‘busman’s holiday’ attraction for Chinese tourists to visit DPRK.”

UPDATE 9/2/2009: According to the Koryo Tours newsletter, the mass games will be extended to the 10th October–so an extra 2 weeks for Americans to visit DPRK this year.  Also, a quick mass games tour for 850 Euros will be repeated Sept. 24-26. Finally, Koryo Tours is resuming a tour of Turkmenistan this November.  I took this trip and recommend it.  Learn more about travel to Turkmenistan here.

ORIGINAL POST: Koryo Tours sent out  a newsletter highlighting an affordable trip to see the Mass Games in Pyongyang this year:

Following on from the success of our first ever mini-break, we are pleased to be able to offer you a re-run of the most affordable trip we have ever run to North Korea. This is an amazing opportunity to experience the Arirang Mass Games as well as the highlights of the capital city of Pyongyang, see what all the fuss is about this August on a journey we guarantee you will never forget. Koryo Tours has been running trips to North Korea for over 16 years now and is the only expert in the field.

-only 850 Euros all inclusive from Beijing
-3 days in North Korea
-package includes return flights from Beijing, deluxe accommodation, transportation in North Korea, entry fees, guides services, etc
-2 opportunities to see the Arirang Mass Games, literally the most amazing spectacle you will ever witness
-full itinerary in Pyongyang city, including the Juche Tower, Korean War Museum, Kim Il Sung Square, Pyongyang Metro, and much more
-meals in local restaurants
-US citizens welcome to join this tour also
-accompanied by our expert British staff and the best Korean guides available
-the maximum experience for the minimum cost
-discounts available for students, children, and groups of 3+ booking together

This tour will take place from September 24th – 26th and the deadline for booking is Monday September 14th, please get in contact if you are interested in being part of this journey of a lifetime to the country that makes the most news but still has only a trickle of western visitors per year. See it for yourself a mere 90 minutes from Beijing by plane. A fascinating, safe and unique experience is guaranteed.

Check out Koryo Tours’ web page here.

I just got a newsletter update from Koryo Tours.  They are offering a discount tourist trip to North Korea for three days (Euro 750).  You can learn more about it here.

The price of the package is all inclusive from beijing including flights, accommodations, guides, entry fees and the other basics. You’ll also get two chances to see the Mass Games and a tour of Pyongyang’s monuments. Apparently you will also get to eat in local restaurants as opposed to staying sequestered in the hotel.

The trip runs from August 27 – 29, 2009, with the last date to book August 17, 2009. Students, children and groups of at least three are also eligible for discounts. And, Americans are allowed to take the trip.

From China Business News:

Q: Koryo Tours has built its business by providing tour trips to North Korea. Why did you choose North Korea, and how tricky was it to get the business started?

A: In 1993, Joshua Green and I were approached by a North Korean colleague (that Josh had studied Chinese with at the Beijing Foreign Language University in 1998 and Nick played football with in 1993) who, after returning to Pyongyang had worked in the national travel company. At that time, it was a real fledgling travel industry (they only opened to western tourism in 1987) and less than 50 western tourists visited per year. We started going every month but with very few tourists, mainly driven by fascination, realisation that we had incredible access and the fun of working with some amazing Koreans. During the famine, we worked with aid agencies and continued tourism which brought in a steady amount of work for our Korean colleagues. in the past five years, DPRK tourism have seen growth, and we now take just under 1,000 tourists a year – about half of all western visitors. With my colleagues Simon and Hannah, we make sure that tourists have the best access possible to the country and people. Having specialised in one country for 16 years, it really does mean we are literally the only experts in this destination, and for every tourist we have taken it rates as one of their most amazing experiences.

Q: What effect does North Korea’s aggressive stance on defense have on your business – do people become more or less interested in visiting when it tests a nuclear bomb or fires a missile?

A: Every few weeks, North Korea makes the news for one reason or another, usually a negative reason of course. However, North Korea remains one of the safest and most fascinating countries in the world to visit. For those who are of the opinion that seeing a country for yourself is more valuable than watching the interpretation on the world news, then we provide them that access. In addition, as we accompany the tours, we provide an insight into the country that is difficult for a visitor to interpret. Our clientele are generally very worldly and aware and interested in what is going on, I think the DPRK being in the news for any reason puts it on people’s mental map and thus makes more people visit rather than being scared off.  

Q: North Korea is a pretty ‘left-field’ travel destination. What have been the key approaches to marketing your company, both locally and internationally?  

A: Our reputation has been established because we provide excellent service and we really do make sure that any visitor to Korea will have the time of their lives. We have a company responsibility to engage with the Koreans and much of our work is involved in cultural exchanges, film making and charity projects. I think this aspect of our work comes across to potential clients who see we really are more than a travel agency. We rely heavily on word of mouth and a great deal of our tourists know someone else who has been before, also we get a good number of repeat visitors as we don’t simply run the same tour over and over again. Being honest, doing the best job possible and maintaining good contacts with our previous clients are critical. This is how we keep a good reputation which we see as being the key to selling our product.  

Q:  Are you planning to diversify to other locations beyond North Korea – and if so, how do you choose new destinations?

A: Since 2006, we have been running twice-yearly tours to Turkmenistan, which is a fascinating and amazing place to go. In addition to this, in 2010, we are planning on offering a wider range of tours to places such as Tajikistan (for Persian New Year – when they hold a Buzkashi event), to the Tumen river area including Yanji in China, the North Korean free trade zone of Rajin-Sonbong, and Far Eastern Russia (around Vladivostok), also a tour to the North Western Caspian Sea region including Volgograd (once known as Stalingrad) and the mysterious republics of Kalmykia and Dagestan. All are remarkable, highly-interesting, and unique places that we think our discerning clients will be interested in. North Korea remains the focal point of our company, but these other destinations fit well in the mould of visiting unusual but interesting places.

Although I have never visited the DPRK with Koryo Tours, I did travel to Turkmenistan and I recommend it.  That trip launched my interest in Central Asia, and I quickly followed it up with visits to Iran and Tajikistan.

Read the full story here:
BizTalk Interview: Nick Bonner, Founder of Koryo Group
Gary Bowerman
6/27/2009

UPDATE 4: from a reliable source

The situation was caused by a mistranslation. Following the nuclear test and rocket launch earlier in 2009, the FCO suspended funding (and therefore visas) for FCO FUNDED DPRK PROJECTS IN THE UK for three months. This, unfortunately, was mistranslated into “suspending visas for DPRK citizens”, thus the cerfuffle.

UPDATE 3: By Michael Rank

Confusion over a reported ban on Britons visiting North Korea and North Koreans coming to Britain seems to have been cleared up.

Koryo Tours said last week that they had been informed by their partner, Korea International Travel Company, that “In connection with the recent measures taken by UK government not to allow DPRK citizens to enter the UK we also will not receive any UK citizens as tourists to the DPRK for the time being.”

After some confusion, a spokesman for the North Korean embassy in London said on Monday that they had been reassured that there was no ban on DPRK citizens visiting Britain and that North Korea was therefore issuing visas to Britons as normal, although as usual it “depends on the case”.  He had “no idea” how the confusion had arisen.

A Foreign and Commonwealth Office spokeswoman confirmed that “we have not introduced any new measures (regarding visas for North Koreans), nor have we refused any visas recently.”

The Home Office recently posted figures showing that in recent years Britain has somewhat surprisingly issued 13-18 North Koreans a year with tourist visas, including a few under-18s. Most of the few North Koreans visiting Britain presumably come as part of official delegations, including a Workers’ Party of Korea group who came last January.

Foreign Secretary David Miliband said on Monday: “No individual [North Korean] officials are currently subject to travel bans or asset freezes. The new UN Security Council Resolution 1874, passed on 12 June 2009 tasks the UN Sanctions Committee to designate further organisations and individuals for travel bans and asset freezes.”

UPDATE 2: Koryo Tours has notified me that the visa restriction has now been lifted.  According to their email:

We have just been informed by our Korean partners that the ban on UK citizens travelling to the DPRK has been lifted and they are now once more accepting visa applications from Brits.

All tours will be running as expected with no restrictions on any nationalities, and all US tours in the summer are expected to also go ahead.

UPDATE 1:  Michael Rank has managed to uncover the number of tourist visas issued by the UK government to North Korean citizens from 2005-2008 (source):

2005 
Over 18: 17
Under 18: 1

2006
Over 18: 13
Under 18: 3
 
2007 
Over 18: 12
Under 18: 1

2008 
Over 18: 15
Under 18: 2

See the origins of the travel ban below:

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Koryo Tours has been in the North Korea tour business for many years.  They have helped expand tourism in the DPRK and made three great documentaries in the country: The Game of Their Lives, A State of Mind, and Crossing the Line. 

They offer some interesting new information in their June newsletter:

1. Despite the recent nuclear test and missile launches it is still business as usual–and this is for tourist companies as well as for the various European Embassies in Pyongyang. Koryo has tourists going in almost every week and fully expect the Arirang Mass Games (info) to be going ahead from 10th August to the end of September and maybe into October, as previously confirmed. American tourists are welcomed during this time and tours are showing a high level of interest.

2. New tourism attractions:Koryo Tours has just made trips up and down the Taedong river in central Pyongyang available to tourists for the first time.  Several sizes and speeds of vessels are available for short jaunts in the city centre as well as longer cruises to the suburban scenic spot of Mangyongdae. They plan to add these trips to many of their tours.

3. Charity Projects: In addition to Koryo Tour’s long running relationships with the Rotarian Society and Love North Korean Children they have just launched an appeal to raise money for a couple of charitable projects in the DPRK, one to purchase the first ever shipment of Braille dictionaries for blind children, and one to buy playground equipment for orphanages. More details on these projects can be found on their website if you can help then please let them know.

4. Mt. Myohyang named UNESCO site: UNESCO recently awarded the Mt Myohyang area in the DPRK the status of Biosphere Reserve. The area is a sacred site as, according to legend, it was the home of King Tangun, forefather of the Korean people. The scenic mountainous area rises nearly 2,000 metres above sea level. Its spectacular rocks and cliffs provide a habitat for 30 endemic plant species; 16 plant species that are globally threatened and 12 animal species that are also endangered. A wide variety of medicinal herbs also grows in the site.  For tourists, it is well known for the International Friendship Exhibition which is a series of subterranean halls housing the gifts which were given to the 2 leaders by people from all over the world.

If you would like to receive the Koryo Tours newsletter, visit their home page and click on the newsletter link in the upper right corner of the page.

The Art Newspaper  published an interesting piece on how artists are trained and art is produced in the DPRK.

On artistic training:

All DPRK artists are members of state-run studio complexes where the art is actually created, and every artist has a formal ranking. These start at level C, move up through B and A, followed by “Merited Artists”, then “People’s Artist”. There are around 50 “Merited Artists” still working today and perhaps 20 “People’s Artists”, the best known being Son U Yong, Kim Chun Jon, Jong Chang Mo, Li Chang and Li Gyong Nam. Almost all artists working in oil and brush-and-ink are men but there are exceptions—for example Kim Song Hui, well known for her brush-and-ink work, is also a People’s Artist. There is also the Kim Il Sung Prize but artists normally have to be at least over 50 to receive this highest accolade, the most famous recipient being Jong Yong Man.

The top art institute is the Pyongyang University of Fine Art with various sections: brush-and-ink, oil, sculpture, ceramics, mural painting and industrial arts. Young artists are selected from around the country and if they are judged sufficiently skilled they will study here. Pyongyang University requires a minimum of five years study: at the moment there are 7-10 students studying oil painting and around 20 studying Korean brush-and-ink painting. In total there are around 150 students a year in the fine art department. Students enjoy class outings to local factories and much time is devoted to object and life drawing although not with nude models but, for example, girls in swimming costumes.

After finishing university the students are selected by various art studios—the Paekho or Central Art Studio, the Songhwa established in 1997 for retired artists, and the most active studio-compound, the Mansudae in Pyongyang.

On artistic style:

The art itself looks like classic Social Realist propaganda, that Beaux Arts technical tradition received through Russia, maintained by the Soviet Union and now, with the transformation of China, only being practised in North Korea, unchanged for more than 50 years. Abstract painting does not exist as it is deemed bourgeois and anti-revolutionary, and if some representational art can be purely aesthetic without political overtones, many landscapes do portray places of the revolution or of political significance.

Obedience to the ideology and excellence in its clear communication to others are what matter rather than any individual glory. This ensures an anonymity to much DPRK production that only its cognoscenti can penetrate. Experts can not only assign an artist’s name to a work, they can also determine whether it is an “original” or one of endless “copies” of an image.

Ever since the founding of the state in 1948, certain themes have maintained their place in the officially approved iconography of the “Fatherland” and it is hard to establish which artist first produced a specific image and when. These same images can be reproduced countless times over the decades. Thus much detective work is required to trace the origin of an image, the only real source being the annual “Yearbook” cataloguing official production.

As [Nick] Bonner explains: “The skill level is very high in academic drawing and painting, but the production is massive and it’s hard to find ‘pure’ pieces, you have to know the provenance or where things were first found.” Indeed, even the museums display copies, ostensibly to “preserve” the quality of the originals kept in storage.

More information on the Mansudae Art Company:

Here visitors, especially foreign tourists, are welcome to see the artists working in their small studios, watch the instructional video on the operation of the company, and buy some work from the large gift shop. Prices at the very top end for a “People’s Artist” can reach as high as €15,000, the favoured currency for all foreign transactions.

Woodblocks are a North Korean speciality, though nowadays they have been almost entirely replaced by lino prints with an attractive rich ink finish. The first ever exhibition of such prints in the United States, loaned from Bonner’s collection, opened last year at New York’s Korea Society, which is currently touring through the country. Initial editions are often very small, less than ten, but if the image proves popular the lino is either re-cut by the same artist or by a “copy” artist and signed by him.

At Mansudae there are also small-scale ceramic sculptures available, naturally of a propagandist nature, as well as more classical ceramics. There is even a startlingly realistic sculpture, reminiscent of Duane Hanson, of North Korea’s most famous ceramicist Uchi Soun (1919-2003) and examples of his widely-exhibited work for as much as €10,000 a pot. There are also striking large-scale figurative watercolours on paper and the highest-quality work, local ink paintings called “Chosonhwa”, some of which will be “thematic art” on revolutionary themes, as each artist will produce at least one a year for the state to show his support for the country. Mansudae employs some 150 of these ink-artists, compared with perhaps 60 oil painters. With some 1,000 members Mansudae produces at least 4,000 top level original works a year, though it also has a factory-style section producing copies for western hotels. Employees, who work a five day eight-hour week, are paid, dependent on level, at a similar rate to the national average, €35 a month for a worker and €70 for a technician.

More information on art in the DPRK: 

1. The Paekho Art Studio has partnered with Felix Abt to sell their art internationally.  Their web page is here.   The Mansudae Art Studio also launched a web page (click here).

2. Nick Bonner has a huge collection of North Korean art.  I have seen quite a bit of it, and it is impressive.  He also sells North Korean art through the Pyongyang Art Studio.

3. There are a couple of books on North Korean Art.  They are very different: North Korean Posters: The David Heather Collection and Art Under Control in North Korea.

4. (h/t Werner) The Mansudae Overseas Development Group, which has been building monuments and buildings across the developing world (mostly in Africa) is part of the Mansudae Art Studio.  

Read more below:
Inside the Democratic People’s Republic of North Korea
The Art newspaper
Adrian Dannatt
3/18/2009

I was looking at the Koryo Tours web page and found the following information on North Korea’s revolutionary operas:

In the DPRK there are five revolutionary operas, all created in the early 1970s, which have been termed in North Korea as ‘immortal classics’.  In order of production date these are; Sea of Blood, The Flower Girl, A True Daughter of the Party, Tell O’ the Forest! and The Song of Mt. Kumgang. These operas are still performed to this day and on the occasions that performances take place it is even possible for tourists to attend the shows, the performing language is of course Korean but when foreigners are in attendance English language supertitles are beamed onto a wall beside the stage so that the narrative can be followed by visitors. All operas are full-scale, large cast efforts with amazingly high production values and these 5 shows have sustained their popularity over the decades. All of them of course contain strong political messages that reflect the issues concerning the country at the time of their writing up until the present day and people of all ages attend the shows frequently. For complete information on what comprises and constitutes a Revolutionary Opera and what characteristics and values it must have then there is only one book to read; On the Art of Opera by Kim Jong Il.

I have posted descriptions of the five operas below (each also from the Koryo Tours web page):

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Tourism:
Koryo Tours has notified the world that the DPRK will be putting on the Arirang Mass Games again this summer.  American tourists will be allowed to attend–click here to book your tour. Most other passport holders can opt for a longer visit–click here to check out the dates and locations.   I saw the mass games in 2005, and it is something I will never forget.

Humor:
Someone posted a North Korean comedy routine on Youtube.  If you have ever wondered if North Korean women wear Kim Jong il jumpers, consider the question resolved…though I am still not sure how funny it is.

PART 1, PART 2

My local Korean language expert cannot understand the dialect over the audience noise and the music, so if any viewers out there know what it is about, please post in the comments below.  Here is an older post of North Korean (and other communist) jokes.

Keeping up with the Joneses:
The Guardian published a humorous comparison between the North and South Korean ambassadors in London.  Check out the PDF here.

The Koryo Tours December newsletter went out this week.  You can read it here. Interesting highlights below:

1. Apparently the areas open for tourism in the DPRK are expanding.

“We opened a few new areas to tourism over the course of the year including the East Coast city of Chongjin and the nearby Chilbo mountain area, Haeju in the south west of the country and various sites around Pyongyang. We stayed in a few different hotels, many of which we are now able to offer to our clients and in 2009 we intend to go to even more places than ever before, some wholly new areas and some new and expanded attractions in more familiar places – we can’t give out all details (some innovate, others imitate – have to keep some of it off the website for now to protect our interest!) but trust us – you’ll never have another holiday quite like this one if you choose to go with us next year. We have vastly expanded our range of tours to be ever-more inclusive to all demands.”

“2008 was also the year in which we continued our innovation in new kinds of tours; we ran a football tour where a foreign side played against a Korean team in a friendly, and the first ever Ice Hockey, Volleyball, and even Cricket (yes, cricket!) tours took place, all of them between visiting westerners and local Koreans. We continued our school trips and cultural exchange programs and assisted in several interesting and worthwhile projects, some of which are outlined further below. We also ran Pyongyang’s first ever pub quiz. It was a very interesting year for us all and we hope to repeat this innovation in 2009 so if you have any ideas for trips to DPRK then we would be more than happy to hear them, there are a great many restrictions on what can be done there but we have many years of experience and a track record of getting things done which is second to none, if it can be done, then we will organise it for you.”

2. Koryo Tours took in about 950 tourists this year.
3. Mass Games are presumed to be on in 2009.
4. Tour dates here.