Travel firms hit by decreased tourist arrivals from Japan

The South Korean government is going to provide financial aid to local travel agencies facing financial problems due to a sharp fall in the number of Japanese travelers visiting the South, according to the culture ministry and trade association. The government has decided to offer about 1 billion won (US$947,777) to 42 local travel agencies in order to support their promotions appealing to Japanese tourists, the ministry said. In the first nine months, the number of Japanese travelers visiting South Korea fell 25.5 percent to 2 million compared with a year earlier, mainly due to the Japanese yen's fall against the South Korean won and the escalated tension on the Korean Peninsula from North Korea's nuclear test, according to industry sources. The travel agencies suffering from cash shortages requested the government to offer financial support in April.