New Tourist Resort: Could This Be the Solution to the Crisis?

North Korea has recently unveiled a massive tourist area on its east coast, as reported by the state news agency KCNA. With facilities ranging from multiple hotels to swimming pools and water slides, the area, dubbed “North Korea’s Waikiki” by South Korean media, aims to accommodate up to 20,000 domestic and international travelers.

Initially, the Wonsan Kalma resort area was opened to local tourists. Images released by the tightly controlled government news agency showcased visitors in colorful swimsuits enjoying the beach. The influx of North Koreans of all ages from across the country has been significant, with many expressing awe at the grandeur of the tourist city, where over 400 artistically designed buildings line the white sand beach in perfect harmony.

The international largely isolated North Korea views tourism as a crucial source of foreign currency. Next week, it will welcome its first foreign tourists to the area from Russia. It is speculated that Moscow may have supported the construction of the tourism facilities in return for North Korea’s support in the Ukraine conflict, such as sending North Korean troops to Russia.

Plans for this billion-dollar tourist destination have been in the works for over a decade. North Korean leader Kim Jong Un has announced that North Korea will continue to develop large-scale holiday resorts in an attempt to combat the ongoing economic crisis. However, after North Korea increasingly isolated itself during the COVID-19 pandemic and continues to allow only a few foreigners into the country, there are significant doubts about the economic viability of such tourism projects.

Prior to the pandemic, up to 90% of visitors came from China. However, due to tensions between the countries, tourism has not recovered post-pandemic. Since February 2024, North Korea has also been welcoming Russian tourists. Last year, just over 2,000 Russians visited, including only about 880 tourists, according to AP reports based on insights from South Korean experts into Russian government documents. However, this number is too small to revive North Korean tourism.

The newly opened resort on the east coast is a pet project of Kim Jong Un, who had shown great interest in developing North Korea’s tourism industry in the early years of his tenure. During the inauguration last week, Kim expressed “utmost satisfaction” with the new holiday destination, declaring it “one of the biggest successes of this year.” The Russian ambassador was also present at the event.

Photos released by the state news agency from the ceremony show Kim alongside his daughter, who, due to her regular public appearances, is speculated by some experts to be a possible successor for the country’s political leadership. Neither her name nor her exact age has been confirmed by North Korean authorities.

Kim Jong Un’s wife, Ri Sol Ju, also made her first public appearance in about a year and a half at the event. She was photographed carrying a Gucci handbag, a clear violation of UN sanctions that ban the export of luxury goods to North Korea. According to South Korea’s official news agency Yonhap, North Korean authorities likely brought the luxury goods into the country through diplomatic baggage.