▮ Research background and objective

￮ Tourism strengthens the local economy and creates jobs. Moreover, the benefits of travel and tourism extend far beyond their direct impacts, boosting service-oriented industries indirectly. Recognizing the tourism industry’s capability of delivering tangible outcomes in a timely manner, policymakers in Jeollabuk-do have and will continue to leverage tourism to generate new revenue streams for the region’s relatively small economy. Despite the great potential of tourism to accelerate development, the region lacks a large theme park capable of attracting a vast number of tourists.

￮ In this context, this study proactively explored the feasibility of creating a large-scale theme park in Jeollabuk-do, laying the foundation for the development of more comprehensive strategies. Specifically, it focused on identifying potential challenges associated with attracting private capital, designing a support system to address them, and building an effective revenue model that capitalizes on the theme park. 

▮ Research scope and methodology 

￮ This study framed a hypothesis: “Is Jeollabuk-do ready to accommodate a large-scale theme park?” and explored its validity from locational, institutional, and economic perspectives.

￮ This study reviewed not only large domestic theme parks but also those in East Asia to ascertain the locational characteristics of theme parks that warrant new investment. From an institutional standpoint, we delved into several failure cases at home and abroad, identified specific misguided practices, and devised ways to tackle them. For economic viability, this study investigated the tourism demand revolving around a theme park in Saemangeum and estimated the number of visitors by the theme park’s size. 

Based on this forecast, we calculated projected cash flows for a proposed theme park along with relevant strategies to secure profitability.

▮ Conclusions

￮ For hypothesis testing, this study analyzed the possibility of creating a large-scale theme park in Saemangeum from multiple angles, with a focus on locational, institutional, and economic aspects. The analysis results are as follows.

￮ With the absence of a megacity in Jeollabuk-do, attracting investments for a large-scale theme park can be challenging. However, from an institutional perspective, Saemangeum is the only place eligible for double incentives both as a free economic zone and an investment promotion district, which is a significant advantage compared to other regions. To achieve economic viability, the integration of small- and medium-sized theme parks rather than a large-sized theme park can be a better option, allowing various developers to diversify their risks and encouraging visitors to enjoy a wide array of programs, extend their stay, and consider revisiting the region.

￮ Therefore, this study proposes that function-specific small- and medium-sized theme parks be created in a phased manner to reduce the investment risk of individual parks and foster synergistic effects by sharing demand. Additionally, in order to increase demand, it is necessary to attract foreign visitors by expanding the global transportation network and facilitating transfers between metropolitan transportation networks and the Saemangeum internal transportation network. Lastly, the local government is advised to develop a valid business model to diversify the investment risks of private businesses and minimize the losses they may incur in the early stages of theme park operations, ultimately delivering mutually beneficial outcomes.

▮ Policy recommendations

￮ No longer do large-scale theme parks provide enormous economic benefits to the regions in which they are located. Therefore, policymakers in Jeollabuk-do must approach the theme park project with a long-term perspective and give serious thought to how they will maintain a park’s harmonious and beneficial relationship with the surrounding region. 

￮ To this end, the Saemangeum Development Authority and Jeollabuk-do are required to collaborate on the transformation of the entire Saemangeum region into a theme park, the design of spatial planning systems to facilitate the creation of function-specific theme parks and tourist facilities, and the development of tourism-related products and infrastructure.

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