IFEZ: An Emerging Hub of Tourism, Leisure, Recreation, and Entertainment

IFEZ: An Emerging Hub of Tourism

Globally, foreign direct investment in the tourism sector has been steadily increasing. Yeongjong, located within the Incheon Free Economic Zone (IFEZ), has quickly become the primary destination for tourism and leisure, attracting tens of thousands of visitors and offering numerous investment opportunities.

By Don Southerton

Over twenty years ago, IFEZ initiated an ambitious plan to attract foreign investment. Districts Songdo, Cheongna, and Yeongjong in Incheon were designated as South Korea’s first free economic Zones (FEZs). A free economic zone attracts foreign investment, capital, and technology by offering tax reductions and deregulation.

More specifically, global FDI in tourism, leisure, recreation, and entertainment has continued to improve, as cited by the World Tourism Organization (UNWTO), which partnered with the fDi Intelligence from the Financial Times.

Today, IFEZ offers an unparalleled strategic location, world-class infrastructure, a favorable business environment, and supportive government policies. In addition to providing expedited access to Incheon International Airport and Sea Port, the surrounding Capital Metropolitan Market boasts a population of 25 million, and over 800 million individuals are accessible regionally within a 2-hour flight radius.

Yeongjong, a part of the IFEZ business triangle, is being developed as a hub for tourism, leisure, recreation, and entertainment, catering to tens of thousands of visitors. Yeongjong and IFEZ host two integrated resort casinos: Paradise City and Inspire Entertainment Resort. A third site, Midan City, is ready for development and open to investment.

Paradise City resort boasts a Forbes Travel Guide 4-star Hotel, shopping mall, spa, convention facilities, and a casino for foreigners.

In addition to its five-star hotel, expansive convention facilities, and casino for foreigners, Inspire Entertainment Resort is newly opening and showcases local and international performance talent in its 15,000-seat area. Plans include Discovery Park, an outdoor entertainment space.

Midan City, former Caesar’s, is a ‘ready to build’ site with approximately 25% of the initial development completed. It offers a unique opportunity to ‘fast-track’ investment in a luxury hotel, spa, conference center, restaurants, and a casino for foreigners.

The adjacent Muui Island Solaire Ocean Resort is perfect for resort hotels, convention facilities, water and theme parks, and meditels, where foreign patients visiting South Korea can enjoy high-quality medical services and amenities. Connected by a bridge from the Incheon International Airport, Muui Island Solaire Ocean Resort will share ocean views, hotels, a convention center, and a water park.

The Muui Island Solaire Ocean Resort medical tourism industry opportunities are of special interest. Specifically, Korea has become a favored destination for foreigners seeking affordable and quality medical services.

Meditel is a compound of ‘medicine’ and ‘hotel’, where Korean medical services and lodging facilities are in one building for foreign patients.

The South Korean government has officially approved designated sites for constructing and managing meditels so that foreign patients visiting South Korea can enjoy both high-quality medical services and tourism.

There is no better location than Muui Island with its tranquil beaches, solitude, and relaxing lifestyle—all within minutes of the airport and dynamic greater Seoul-Incheon metro area.

Future development and investment opportunities also include Yeongjong Dream Island. Infrastructure work is underway for future amenities, including a sports park, golf course, marina, shopping mall, and commercial business district.

IFEZ FDI Benefits and Incentives

Notably, international foreign direct investments (FDI) deals comprised 28% of the global tourism & leisure industry’s M&A activity in Q1 2024 and signal Yeongjong’s growth. For foreign direct investment (FDI), IFEZ offers benefits, including a skilled workforce, tax reduction incentives, and real estate investment immigration programs.

FDI incentives include tax reduction options in the tourism, hotel, and resort sectors. As in all FDI, each opportunity is subject to a case-to-case review. Some can include exemptions from Customs for hotels and resorts importing goods and local taxes based on the investment.

Real estate investment opportunities, too, are an IFEZ benefit for those who invest locally and retain the investment for at least five years.  Immigration programs allow investors to freely enter, depart, live, work, and run their businesses in Korea. Their family may receive education and be eligible for Korean medical insurance and its benefits—again, equal to Korean residents.

In conclusion, South Korea, the City of Incheon, the Incheon International Airport, and the Sea Port have significantly enhanced the development of IFEZ’s Yeongjong as a hub for tourism, leisure, recreation, and entertainment. With the global increase in tourism FDI, we can expect investment partners, facilities, and new opportunities to continue attracting tourists, visitors, and local vacationers.

Source: https://www.ifez.go.kr/journaleng/eng/view.do?jrnl_pst_sn=346

For more information, contact: Dsoutherton@bridgingculture.com

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