Destinations known | Will South Korea’s Jeju Island become the first blockchain destination in the world?
- After receiving more than 15 million visitors in 2016, the island’s tourism industry has seen a downturn
- A consortium of businesses hopes that a new digital ecosystem can breathe new life into the declining destination
However, the following year saw a sharp decline in visitors from the Middle Kingdom after China imposed a months-long ban on group travel to South Korea, and the numbers have never quite risen to those dizzying heights since. There are even those who believe that Jeju’s heyday as a holiday hotspot has passed. “Whenever we visited Jeju Island, it was same old, same old,” one woman told the Korea Times. “Even though it is recognised as the number one tourist destination in Korea, I think it is not living up to that reputation.”
Hoping to prove the naysayers wrong, on October 25, Korean online platform Naver reported that the island’s tourism sector would be undergoing a 21st-century upgrade, courtesy of blockchain technologies and a cryptocurrency token called Olefang (pronounced “Olepang”, as there’s no equivalent to “f” in Korean). Led by app developer iFang Korea (called iPang, of course), a consortium of companies from China, Japan and South Korea is establishing the new digital ecosystem, which will encompass restaurants, hotels, shops and car rentals – although with all those learner drivers, you might want to think twice before taking to the roads.
International adopters of the token will be able to avoid the conversion costs associated with changing currencies, as well as credit-card charges, when using the services and facilities provided by members of the blockchain. Speaking to Naver, iFang’s chief executive Shim Jae-bung said, “We will expand the world through the Olefang Global Consortium to showcase the environment where blockchain and cryptocurrency can be used in real life from Jeju Island.”
When tourism on the island was at its peak, residents expressed frustrations that Chinese tourists would patronise only Chinese-owned businesses, meaning that locals were excluded from a share of the profits. The implementation of blockchain could eliminate such concerns and give companies complete financial control and security while making the guest experience more convenient and cost-effective. At least, that’s what the cryptocurrency evangelists preach, but without giving any explanation of how customer choice would be swayed.