The World Cup's opening ceremony in Seoul on Friday featured models wrapped in flowing silk gowns, dancers sporting flat-screen headdresses -- and 7,000 empty seats.
"It was a great ceremony," said Kim Jung-min, a manager at flat-screen maker Samsung Electronics Co, who attended the ceremony. "But I was surprised to see so many empty seats."
South Korea blamed the ticketing mixup on Byrom Consultants Ltd, a UK company in charge of ticket sales that also drew fire in Japan for missed deadlines and double-ticketing.
PHOTO: AFP
It wasn't an auspicious start for an event that South Korea and co-host Japan hope will spur spending and burnish their overseas images. South Korea lost 800 million won (US$650,000) on the first-day extravaganza, Maeil Business Daily reported.
South Korea has been keen to show off its progress in the 14 years since 1988, when it hosted the Olympic Games. Dancers at Asia's largest soccer stadium wore 100 thin flat-panel displays, valued at about 1 billion won. Donated by Samsung and LG Philips LCD Co, the screens displayed different scenes and underlined South Korea's grip on two fifths of the world flat panel market.
To prepare for the first World Cup in Asia since the tournament's inception in 1930, South Korea spent more than US$2 billion to build 10 soccer stadiums, including the 200 billion won it spent on the Seoul World Cup Stadium, which seats 64,640 people.
So far, however, South Korea and Japan have attracted fewer visitors than anticipated. About 48,000 people a day entered South Korea through Incheon International Airport in May, down from 56,000 in April. In Japan, about 40,000 entered per day, 10,000 fewer than officials had expected.
Of the eight matches held in South Korea and Japan in the first three days since Friday's kickoff, 92,932 seats were empty, or 23 percent of the total, according to the Chosun Ilbo newspaper.
Slack demand raises questions about whether South Korea will gain as much benefit from the global tournaments as economists and other planners expected. An estimated influx of 400,000 overseas visitors was expected to inject US$604 million into the local economy, the state-run South Korea Development Institute estimated earlier this year.
"Because the games are being played in 20 different locations, it's the locals who have to pick up the slack," said Hong Namki, South Korea strategist at Morgan Stanley Dean Witter & Co.
"More South Koreans need to get out to attend the games and spend money."
At best, the games will help boost South Korea's economy by 0.1 percentage point in the second quarter from the first quarter, according to Lim Jiwon, an economist at J.P. Morgan Chase & Co in Seoul. South Korea's economy grew 1.8 percent in the first quarter from the previous, the fastest pace in 1.5 years.
"I don't expect the World Cup effect to be as rosy as South Korea had hoped," Lim said.
"The effect will also be less because the games are being co-hosted by two countries."
Many hotels complain of empty rooms.
"Because the World Cup is held both in South Korea and Japan, Japanese tourists, who account for as many as 70 percent of tourists in Busan, aren't coming to South Korea," said Kim Suk-kyung, an official at the Hotel Lotte Busan, part of South Korea's largest chain of luxury hotels.
South Koreans are also refraining from traveling to other cities.
"Compared with a year ago, reservations fell about 30 percent because people are staying home watching TV," said Lim Joung-sim, an official at the Jeju Palace Hotel.
Again, hotel operators say Byrom, the UK contractor, is at least partly to blame.
Byrom, which has a contract with 213 South Korean hotels, canceled more than two thirds of 796,158 rooms covered in its first pact last month, saying it overestimated the number of visitors. That left hotels with empty rooms and little time to fill them.
South Korea's organizing committee for the World Cup plans to protest to FIFA, soccer's governing body, and seek compensation from Byrom for losses caused by unsold seats and ticket distribution problems, Yonhap News reported.
Travel agencies also say they're unhappy.
"Our outbound travel sales could have been higher by about 20 percent if it weren't for World Cup games," said Won Kwang-cheol, a manager at Hana Tour Service Inc, South Korea's largest travel agency. "Inbound traveling is also not as high as everyone expected."
The South Korea Association of Travel Agents said it estimates only about 40,000 visitors from China. That's half its earlier estimate because of expensive accommodation and flight tickets.
South Koreans regained some confidence after the national team unexpectedly beat Scotland 4-1 and drew with England in recent friendly matches.
South Koreans are hoping their national team will make it as far as the second round of the finals for the first time.
History hasn't been kind to the South Korean team.
Though South Korea qualified for more FIFA World Cup finals than any other Asian country, it played in five previous tournaments without winning a single game.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College