North Korean Economy Watch

NK is currently not an ‘approved destination’ for Chinese tourists meaning that Chinese companies are not supposed to sell packages there, until this changes it is difficult to see how viable flights to other locations in China other than Beijing and Shenyang would be, also it is hard to see how Air China makes money on their PEK – FNJ route already due to the generally very low occupancy rate (is that the right word?) on their flights

yes but only CITS branches in NE China are supposed to do this, some kind of regional agreement thing I think, this year there’s been a massive drop off in Chinese tourism, its a small fraction of what it was last year and for many previous years.
Air Koryo could in theory add more routes and maybe Shanghai would be a good idea for them, Beijing is an obvious one being the main point of entry and Shenyang (although the 2 flights a week there are on small planes, the train goes from Pyongyang to there too which is more common for Koreans) has a lot of Koreans doing business there. Shanghai however doesn’t have a consulate and not so much NK business (one restaurant is the only think I know of) so perhaps making their irregular flights to places like Bangkok and Singapore more common would be better for them, they fly there already and have representation there, Koreans do business in those places and they wouldn’t be eating into their own market as they might if they flew to Shanghai (they would see anyone travelling from south of Qingdao going there instead of Beijing – dividing and conquering themselves perhaps) anyway who knows? not me!

I have investigated this matter further and now bring you news froma Chinese report on July 8 about planned charter flights from Qingdao (Shandong province) to Pyongyang:
朝鲜高丽航空也计划近期执飞青岛至平壤的包机。朝鲜高丽航空计划于近期执飞青岛—平壤包机.
http://www.sd.xinhuanet.com/news/2009-07/08/content_17040133.htm

I also have news from Guangzhou in May 2009 that North Korea 4 day and 5 day tour packages to Pyongyang are being offered for about US $700 using flights from Shenyang:
广州也推出了系列产品，行程以5天4晚或4天3晚为主，搭乘图－154客机，从沈阳直飞神秘国度朝鲜首都平壤，价格在4800~5500元左右。
http://gzdaily.dayoo.com/html/2009-05/12/content_564362.htm

So what is a Chinese tourist supposed to do in Pyongyang?
来到平壤，有几件事是一定要干的：喊一声“同志！”，尝一口朝鲜泡菜，坐一次深入地下百余米的平壤地铁，吃一碗玉流馆的平壤冷面，还要看一场10万人表演的《阿里郎》演出。
Here’s the list: Shout “Comrades!”, taste kim chee, ride the Pyongyang subway, eat a bowl of cold noodles, and watch the big Arirang show with 100,000 performers.
http://news.163.com/09/0512/06/593H2JVI000120GR.html

Another Chinese news article covered this today, based on a South Korean report:

朝鲜将开设平壤至上海航线吸引中国游客

韩国《Nocut新闻》7月16日报道称，朝鲜高丽航空将开设平壤至中国上海的航线，并且平壤至青岛的直飞包机的首次运营也在计划中。

报道称，最近朝鲜旅游总局官员对访问平壤的上海旅游局官员表示，希望上海能够更加关注朝鲜旅游，朝鲜计划在平壤和上海之间开设航线。另外，朝鲜官员还透露，现在正在考虑平壤和杭州之间特殊包机的运营事宜。

韩媒称，朝鲜之所以增加与中国之间的航线，是因为去年9月中国政府将朝鲜指定为海外旅行地，朝鲜希望维持中国旅客人数。

To summarize, it says that Shanghai Tourism Bureau officials were in Pyongyang recently, and that a flight between Pyongyang-Shanghai will begin soon (operated by Air Koryo). It also mentions that arrangements are being made for a charter flight from Pyongyang-Qingdao and a special Charter flight from Pyongyang-Hangzhou.