The term resort is not defined by law but is used in the lodging market as a general term for lodging establishments that operate in a specific manner. However, because there are no separate facility and registration standards, the facility composition and operation systems differ by country.
Generally, the term resort is used in two ways.
First, in a narrow sense, it refers to a lodging establishment located in a resort area. For example, the ‘Four Seasons Resort Orlando at Walt Disney World Resort’ is a lodging establishment near the large resort area of Disney World in Orlando, USA.
In Korea, the type of lodging establishment most similar to a resort in the narrow sense is a timeshare. For instance, the ‘Kensington Resort Seorak Beach’ is a timeshare located near the Bongpo Beach resort area in Goseong.
In the case of timeshares, the name often includes the word ‘condo,’ with ‘resort’ being the next most common. However, the type of lodging establishment most frequently classified and distributed as a resort, whether in the name or in distribution channels, is residential lodging, which has a larger supply than timeshares.
Second, in a broader sense, it refers to a lodging establishment that, along with accommodation, includes large-scale leisure facilities, thereby functioning as a resort destination itself. For example, ‘Atlantis Bahamas’ is a large resort in the Bahamas, Caribbean, featuring five lodging establishments, a water park, natural and artificial beaches, and a dolphin show venue.
In Korea, ‘general resorts’ are the type of lodging establishment most similar to a resort in the broader sense. For example, ‘Vivaldi Park’ is a general resort that includes 19 timeshares, one tourist hotel, a water park, a ski resort, and a golf course.
Although the name of general resorts rarely includes the word ‘resort,’ they are mostly classified and distributed as resorts in distribution channels.
Resorts commonly employ separate ownership or membership-based operations. Peak demand is concentrated during vacation seasons, resulting in significant seasonality in cash flow, and the concentration can be impacted by various factors, leading to high risk. To mitigate this cash flow risk, separate ownership and membership-based operations are widely used.
