North Korea bans foreign tourists to newly opened beach resort
DPR Korea Tour, a website run by North Korea's tourism authorities, said in a notice that the eastern coastal Wonsan-Kalma tourist complex "is temporarily not receiving foreign tourists". It gave no further details including why a ban was established or how long it would last.
North Korea says the complex can accommodate nearly 20,000 guests. The resort opened to domestic tourists July 1 before receiving a small group of Russian tourists last week. Observers expected North Korea to open the resort to Chinese tourists while largely blocking other international tourists.
Ban comes after visit by Russia's top diplomat
The announcement came after Russian Foreign Minister Sergey Lavrov flew to the complex to meet Kim and Foreign Minister Choe Son Hui for talks last weekend.
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North Korea and Russia have sharply expanded military and other cooperation in recent years, with North Korea supplying weapons and troops to back Russia's war against Ukraine. During a meeting with Choe, Lavrov promised to take steps to support Russian travel to the zone.
"I am sure that Russian tourists will be increasingly eager to come here," he said.
But experts say North Korea likely decided to halt foreign travel to the zone because of a newspaper article by a Russian reporter who travelled with Lavrov that implied North Koreans at the zone appeared to be mobilised by authorities and not real tourists.
"The North Korean government is believed to have determined that it would face some negative consequences when it opens the site to foreigners," said Oh Gyeong-seob, an analyst at Seoul's Korea Institute for National Unification.
A beach resort in the Wonsan-Kalma eastern coastal tourist zone on July 1, 2025. (Source: Korean Central News Agency/Korea News Service via AP)
Oh said the ban would include Russians, but the North Korea-focused NK News website, citing tour groups specialising in North Korea trips, said Russians won't likely be targeted.
Analyst Lee Sangkeun of Seoul's Institute for National Security Strategy said the ban could be associated with difficulties in recruiting Russian tourists because many would consider North Korea too far away and the trip too expensive.
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Ban likely won't remain for long
Experts say North Korea must open the Wonsan-Kalma zone, the country's biggest tourist complex, to Russian and Chinese tourists, given what was likely a huge construction and operational expenditure from the country's tight budget.
"If foreign tourists aren't allowed to the site, no Russian rubles, Chinese yuans and dollars won't come in. Then, North Korea can't break even and it has to shut down the resort," said Ahn Chan-il, head of the World Institute for North Korean Studies think tank in Seoul.
Kim has said the site would be "one of the greatest successes this year" and "the proud first step" in tourism development. North Korea's state media reports the Wonsan-Kalma site has been crowded with local tourists.
The first group of 15 Russian tourists arrived in the resort July 11 after visiting Pyongyang, the North Korean capital, NK News reported earlier this week.
"It was magnificent. Everything is new, clean and stunning," Russian tourist Nina Svirida said in the report.
North Korea has been slowly easing the curbs imposed during the Covid-19 pandemic and reopening its borders in phases. But the country hasn't said if it would fully resume international tourism.
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Chinese group tours, which made up more than 90% of visitors before the pandemic, remain stalled. In February, North Korea allowed a small group of international tourists to visit the northeastern city of Rason, only to stop the programme in less than a month.
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NZ Herald
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- NZ Herald
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RNZ News
a day ago
- RNZ News
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NZ Herald
a day ago
- NZ Herald
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The sheer scale of the Chinese market cannot be under-estimated, a single district in Shanghai can have a population equal to all of New Zealand. It's no surprise that 70% of Kiwi companies in our survey are there primarily for the size of the serviceable market. However, seizing this opportunity now means looking beyond the traditional gateway of Tier 1 cities like Shanghai, where over 78% of New Zealand businesses currently have a presence. Consumption growth in these megacities is becoming sluggish. With housing prices reaching nearly 30 times a person's annual income, many households are reluctant to increase discretionary spending. The new story of growth is unfolding in China's Tier 3 and 4 cities. Here, with lower housing costs and basic needs met, families are shifting their focus from the quantity of consumption to the quality of their lives. They are turning to domestic travel and seeking out better-quality products. The data backs this up. According to China's National Bureau of Statistics, 26 out of 35 major Tier 3 cities recorded consumption growth, with most increasing by 3.7% or more. This stands in contrast to urban Shanghai, which saw only 0.1% growth and a decrease in luxury spending, despite a robust increase in disposable income. While the premium price point of many New Zealand products makes the high-income middle class in Tier 1 cities a natural fit, ignoring these emerging urban centres would be a missed opportunity. The challenge for Kiwi businesses is to watch these trends closely and plan their play to expand at the right time. Of course, this isn't to say we've 'drunk the baijiu' so to speak. New Zealand businesses certainly face significant hurdles. When asked about their biggest challenges, the top concern for 57% of companies was strong domestic competition. This was followed by the difficulty of adapting to a changing retail environment and shifting consumer preferences (43%). The challenge for Kiwi businesses is to watch these trends closely and plan their play to expand at the right time. Nick Calder Traditional fears like legal hurdles and market access issues ranked much lower, at only 19%. This suggests the primary battle for Kiwi firms has shifted from getting into the market to competing within it. This is reinforced by another key challenge, weak brand awareness for New Zealand Inc., with 44% respondents feeling that there is weak brand recognition for NZ, making it harder to present their value proposition to consumers. On the 'ease of doing business,' most respondents found it to be either somewhat easy or neutral. While that may not sound like a positive number, it implies that most businesses are not fighting for basic access but are instead competing on a relatively level playing field—a crucial sign of a maturing market relationship. This resilience rests on a strong foundation. The New Zealand-China Free Trade Agreement, now more than 17 years old and China's first with a developed nation, ensures that 99% of our goods enter China tariff-free. This bilateral relationship is critical for business, with 70% of respondents believing the strength of this relationship is important for their commercial success. NZBRiC 2025 Business Outlook Survey This confidence extends to how the relationship is managed, with 69% of companies stating they are satisfied with the New Zealand government's approach to the bilateral relationship. Many businesses in China see first-hand the impact of our active and engaged diplomats, whose strong working-level relationships help maintain market access and improve the speed to market for our perishable goods. Without such strong advocacy, New Zealand companies could not thrive in the way they have. Given the opportunities and risks, what is the way forward for businesses as they navigate the journey into the Middle Kingdom? Our report offers several key recommendations for both business and government. Strategies for success - For businesses · Understand Market Dynamics and Move into New Markets. As someone who moved from a New Zealand dairy farm to China, I know first-hand that the speed of change can be dizzying. To succeed, businesses must understand that China is not a monolith. The retail and e-commerce markets differ markedly across the country. Expanding into Tier 2 and 3 cities requires more than just localising products, it needs strong local partnerships built on a long-term vision. · Bridge the Gap Between HQ and Your China Team. Success depends on hiring talented local staff who understand the Chinese market and can communicate effectively with their New Zealand-based colleagues. Companies must invest in mutual cultural understanding and empower their local teams to make decisions at speed. In this hyper-competitive market, business decisions often cannot wait two days, let alone a week. · Evolve the 'New Zealand Story'. The traditional 'clean and green' branding is a starting point, businesses should use social media to build a deeper narrative, one that showcases New Zealand's unique values, personality, and ingenuity to achieve new brand differentiation. For government · China must continue breaking down internal barriers. By fully implementing its 'National Unified Market' policy, Beijing can reduce the friction between provinces and cities. This will make it easier for our exporters to expand beyond traditional Tier 1 markets as consumption patterns evolve. · Both governments must maintain a strong working relationship. This means continuing the full implementation of the NZ-China FTA, nurturing strong working-level relationships, and streamlining processes wherever possible. A year for strategic growth The year 2025 is the Year of the Snake in the Chinese zodiac, an animal associated with wisdom, transformation, and strategic thinking. By embracing these qualities, businesses can navigate the challenges and seize the opportunities in New Zealand's 'Year of Growth'. To download a copy of the report, please visit Nick Calder is executive director of the New Zealand Business Roundtable in China (NZBRiC)
