Performance Management System for Tourism Development Projects to Boost Fiscal Investment Efficiency

- Amendments to the “Tourism Promotion Act,” its Enforcement Decree, and Enforcement Rules to take effect on October 29

- Performance evaluations of subsidized projects undertaken by local governments, consulting support to prevent delays, and more

The Ministry of Culture, Sports and Tourism (Minister CHAE Hwi-young, MCST) announced that amendments to the “Tourism Promotion Act,” the “Enforcement Decree of the Tourism Promotion Act,” and the “Enforcement Rules of the Tourism Promotion Act” (hereinafter, the amendments) will take effect on October 29 (Thursday). The amendments introduce a performance management system for subsidized projects undertaken by local governments, among other measures, to improve the efficiency of regional tourism development projects.

Promulgated on April 28, the amended “Tourism Promotion Act” sets out measures to address delays in implementing tourism development projects and improve their efficiency. These include performance evaluations of subsidized projects undertaken by local governments; the establishment and operation of a Comprehensive Tourism Development Information System to manage and use tourism development information; consulting and training for efficient project operation; and the designation of a dedicated performance management agency.

The amended Enforcement Decree stipulates the requirements for an agency to be designated as the dedicated performance management agency for tourism development projects. The agency must be a public institution or nonprofit corporation with a dedicated organizational unit and specialized personnel to carry out performance management duties. The amended Enforcement Rules strengthen the requirements for local governments applying for national subsidies. Applicants must now submit documentation confirming that they have secured the project site and the results of the local government finance investment appraisal.

Meanwhile, to promote locally led, demand-oriented tourism development projects, the MCST gave local governments autonomy in preparing budgets for wide-area tourism development projects starting in 2026. However, the National Assembly and others have raised concerns about the persistently poor implementation of subsidized tourism development projects undertaken by local governments. The “Tourism Promotion Act” was amended to address these issues.

The MCST expects the new performance management system to help ensure that tourism development projects are completed on schedule and revitalize regional tourism.

KANG Jung-won, Deputy Minister for Tourism Policy at the MCST, stated, “Going forward, expert consulting will be available for tourism development projects from the planning stage through completion. Overambitious projects will also be curbed, improving the efficiency of fiscal investment.” He added, “We will promptly designate a dedicated performance management agency by the end of this year to help the system take root.”