North Korean Economy Watch

By Michael Rank

Far fewer Chinese tourists are visiting North Korea from the border towns of Yanbian and Yanji due to nerves over the country’s recent nuclear and missile tests, a Chinese website reports.

This is normally the height of the tourist season, the report notes, but this year hardly any tourists taking tours to visit the nearby North Korean port city of Rajin (Najin) 라진/나진. “In previous years there have been about 300 or 400 tourists a day [crossing into North Korea] at this time, but recently there have been only about 20,” it quotes a Yanbian travel agent as saying.

Two-day trips from Yanji cost only 800 yuan ($117) per person but because the nuclear testing and rocket launch sites are nearby most tourists are keeping away, the report adds.  Rajin is in fact about 250 km north of the nuclear testing site near Gilju (Kilchu) 길주 but who know what is safe…?

The report claims that things are different in the biggest border city Dandong and that tourists are crossing the frontier at normal levels there.

But this was contradicted by a surprisingly frank report in the China Daily earlier this month which quoted Li Peng, general manager of the Dandong branch of the State-owned China International Travel Service (CITS), as saying: “The revenues from four-day tours and business trips to the DPRK have plunged at least 50 percent compared to last year.”

He said about 30,000 tourists have traveled with his company to the DPRK from Dandong in the past two years, with a four-day visit costing around 2,400 yuan ($350) per person.

“But during the first seven months of this year, we have seen 2,000 make the trip. Many canceled because of safety concerns,” he said, adding that the recent capture and imprisonment of two journalists from the United States had done nothing to ease those concerns.

The journalists have since been released, but it’s unlikely this will result in a massive rebound in China-North Korea tourism.

Another China Daily report was remarkably frank about smuggling which has also been badly hit by the nuclear furore. It also quoted Dandong Federal Business Corp Chairman Shan Jie, who said: “Most of the nearly 1,000 legal enterprises involved in border trade here have stopped operations.”

Meanwhile, the latest report focuses on a North Korean waitress in Dandong who “sports a luxury Gucci watch on her left wrist – and a Democratic People’s Republic of Korea (DPRK) flag pin on her chest.”

“Her restaurant is one of Dandong’s most luxurious and one of the few establishments in the Chinese city bordering the DPRK that is still seeing brisk business in the wake of Pyongyang’s nuclear test in May and subsequent missile launches.”

1. Nick Bonner, founder of Koryo Tours and producer of three documentaries filmed in the DPRK has given a recent interview to World Hub.  Mr. Bonner is currently working on a new film–a North Korean romantic comedy:

“We are hoping to start shooting in December. If that does not kill me then nothing will. We will keep people updated on Facebook and our newsletter and I think the making of the film will be one heck of a ride. Think revolutionary coal miner who wants to become a trapeze artist. But how does she accomplish this? With a script like that how can we go wrong!”

2. Kim Yong Sik was born in 1949. Having lived in Seoul all his life, he discovered his unique talent about 15 years ago; when others started to notice he looked like North Korea’s “Dear Leader.” Since then, Kim Yong Sik has made a living, part time, imitating Kim Jong Il in movies, television commercials, weddings and Japanese TV dramas.

3. Paul Romer’s TED talk: How can a struggling country break out of poverty if it’s trapped in a system of bad rules? Economist Paul Romer unveils a bold idea: “charter cities,” city-scale administrative zones governed by a coalition of nations. Could Guantánamo Bay become the next Hong Kong?  Watch the presentation here.

UPDATE: With a big hat tip to Korea Beat, I have located the new Majon Hotel in North Korea.  See a satellite picture of it here.  Here are some pictures  of the inside c/o the Choson Ilbo.

ORIGINAL POST:

According to the Choson Ilbo:

North Korea on Monday celebrated the completion of what it has hailed as a “world-class” hotel in the Majon resort area in Hamhung, South Hamgyong Province, North Korean Central Broadcasting reported Tuesday.

The broadcast said the Majon Hotel “is equipped with top-class accommodation and recreation facilities such as an indoor swimming pool, a steam sauna, a public bath, and even a beach resort.”

Although it did not specify the size, the broadcast called the hotel a “creation that illuminates the era of the Korean Workers’ Party,” suggesting it is relatively luxurious.

The completion ceremony was attended by key leaders of the party, the government and the military, including People’s Armed Forces Minister Kim Yong-chun, party Secretaries Kim Ki-nam and Choe Thae-bok, and Prime Minister Kim Yong-il.

In a congratulatory speech, Kim Ki-nam said the hotel was “another proud creation built thanks to leader Kim Jong-il’s love of the people in the military-first era.”

The Majon resort area where the hotel is located is famous throughout North Korea. It has a sandy beach park 6 km long and 50-100 m wide along the east coast and 16 recreational buildings, 13 public buildings, and a boy scout camp — all on an area measuring some 3 million sq. m.

Here is the official KCNA press coverage:

Majon Hotel Completed

Pyongyang, July 28 (KCNA) — Modern Majon Hotel sprang up at the Majon recreation ground in Hamhung City, a good destination of holiday makers.

The hotel has all modern cultural and welfare facilities such as bedrooms of various sizes and styles, restaurants, indoor swimming pool, saunas and bath facilities. It has also a bathing resort. This is another edifice to be proud of in the era of Songun, a product of General Secretary Kim Jong Il’s love for the people as he has always worked hard to provide people with better conditions for their recreation.

A ceremony for the completion of the hotel was held on the spot on Monday.

Present there were Premier Kim Yong Il, Minister of the People’s Armed Forces Kim Yong Chun, Secretaries of the Central Committee of the Workers’ Party of Korea Choe Thae Bok and Kim Ki Nam, department directors of the C.C., WPK, officials concerned and employees of the hotel.

Kim Ki Nam in his speech at the ceremony underscored the need for the staff of the hotel to steadily improve the service so that Kim Jong Il’s boundless love may reach people as quickly as possible.

At the end of the ceremony the participants looked round the interior and exterior of the hotel.

Here is the location of the beach.  Some travelers have been there, but photos of the area remain scarce.  If anyone comes across a photo of the hotel, or can identify the exact location, please let me know.  Parts of the beach and surroundings are still not in high resolution on Google Earth, so this also complicates the discovery of the hotel’s location.

Read the full stories here:
N.Korea Completes ‘Luxury’ Resort Hotel
Choson Ilbo
7/29/2009

KCNA

By Michael Rank

Direct flights are planned between Pyongyang and Shanghai, as well as charter flights from Chinese cities to the North Korean capital, a Chinese website reports.

It gives few details, but says the plans follow two visits by Shanghai tourism officials to Pyongyang in June.

At present the only direct flights are from Beijing and Shenyang. The report says there are hopes of attracting more tourists from the Shanghai region and mentions the possibility of charter flights from nearby Hangzhou.

It quotes the Shanghai officials who visited Pyongyang as finding the city “quiet” and “clean”. A separate report notes that because of “tension on the Korean peninsula” Shanghai residents haven’t been terribly interested in visiting North Korea, but this is now expected to change.

In loosely related news, a North Korean delegation in June visited the northern Chinese city of Tianjin, where they are reported to have toured the European Airbus factory where the A320 is being assembled and which opened last year. Rather surprising, given the high tech nature of such a plant… The first Airbus assembled in China was delivered the day after the North Korean visit. The North Korean delegation was led by the deputy chairman of the Central Inspection Bureau, Choi In-hak최인학.

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

North Korea Uncovered version 18 is available.  This Google Earth overlay maps North Korea’s agriculture, aviation, cultural locations, markets, manufacturing facilities, railroad, energy infrastructure, politics, sports venues, military establishments, religious facilities, leisure destinations, and national parks.

This project has now been downloaded over 140,000 times since launching in April 2007 and received much media attention last month following a Wall Street Journal article highlighting the work.

Note: Kimchaek City is now in high resolution for the first time.  Information on this city is pretty scarce.  Contributions welcome.

Additions to this version include: New image overlays in Nampo (infrastructure update), Haeju (infrastructure update, apricot trees), Kanggye (infrastructure update, wood processing factory), Kimchaek (infrastructure update). Also, river dredges (h/t Christopher Del Riesgo), the Handure Plain, Musudan update, Nuclear Test Site revamp (h/t Ogle Earth), The International School of Berne (Kim Jong un school), Ongjin Shallow Sea Farms, Monument to  “Horizon of the Handure Plain”, Unhung Youth Power Station, Hwangnyong Fortress Wall, Kim Ung so House, Tomb of Kim Ung so, Chungnyol Shrine, Onchon Public Library, Onchon Public bathhouse, Anbyon Youth Power Stations.

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:

(more…)

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.

Irish Times
Clifford Conan
5/5/2009

Long-term allies China and North Korea have signed an agreement to set up a rail route between the two countries to encourage tourism, the latest sign of lively cross-border trade between the two neighbours.

The line will run between Tumen City in China’s Jilin province and North Hamgyong province in North Korea, Chinese state media reported yesterday. The route will be operated by two travel agencies, one from China and the other from North Korea. Both sides plan to hold an inauguration ceremony for the route’s trial operations later this month.