Literacy > Lodging Glossary > Small Hotel

Small Hotel

A small hotel refers to a lodging establishment registering and operating a small hotel property as a small hotel business pursuant to the ‘Tourism Promotion Act’. It wa enacted in 2014 to lower the entry barriers to the hotel industry by incorporating small lodging establishments already using the name ‘hotel,’ and managing them as tourism resources.
Statutory Definition
Small hotel properties refer to buildings registered and operated as 'small hotel businesses' pursuant to pursuant to the Enforcement Decree of Building Act, and ‘small hotel business’ means a business that provides facilities suitable for tourist accommodation on a small scale, along with amenities for dining, exercise, relaxation, or training, for use by tourists pursuant to Article 2 of the Enforcement Decree of Tourism Promotion Act.
Lobin Commentary

The small hotel business was added as a subcategory of the hotel along with the ‘medical hotel’ with the revision of the Enforcement Decree of Tourism Promotion Act in 2014. The purpose was to ‘promote investment in the small hotels, enhance the diversity of tourism accommodation services, and expand tourist lodgings.’

The registration standards for the small hotel business, as stipulated in Annex 1 of the Enforcement Decree of Tourism Promotion Act, are as follows:

  1. The small hotel must have 20 to 30 guest rooms, each equipped with a bathroom or shower facilities.
  2. The total area of amenities must not exceed 50% of the building’s total floor area.
  3. The small hotel must have at least two types of amenities. However, facilities for entertainment bars as defined in Article 21, Item 8(d) of the Enforcement Decree of Food Sanitation Act, entertainment bars as defined in Item 8(e) of the same Article, and facilities for gambling as defined in Article 2, Item 1 of the Special Act Concerning Regulation and Punishment of Speculative Acts cannot be included.
  4. The small hotel must have a system in place to provide services to foreigners, such as offering breakfast and employing staff proficient in foreign languages.
  5. Must secure ownership or usage rights of the land and building. However, ownership must be secured if recruiting members.
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Data Source

  • GDP: GDP, Current $US (World Bank Open Data)
  • Establishments: Compendium of Tourism Statistics (UNWTO), Lodging Business Ledger (MOIS)
  • Rooms: Compendium of Tourism Statistics (UNWTO), Lodging Business Ledger (MOIS)
  • Lodging GDP: Value Added by Industry (BEA), National Accounts (Cabinet Office), GDP of Indonesia (BPS), GDP & GNI by Sector (BOK), Economic Census (KOSIS)
  • Period: 2017-2021

※ In Korea, general & residential accommodations are included while rural & urban minbaks are excluded. Comparable countries are selected based upon availability of lodging GDP statistics for all types of accommodations.

Data Source

  • Population: Population, Total (World Bank Open Data)
  • GDP: GDP, Current $US (World Bank Open Data)
  • Rooms: Compendium of Tourism Statistics (UNWTO), Lodging Business Ledger (MOIS)
  • Lodging GDP: Value Added by Industry (BEA), National Accounts (Cabinet Office), GDP of Indonesia (BPS), GDP & GNI by Sector (BOK), Economic Census (KOSIS)
  • Period: 2017-2021

※ In Korea, general & residential accommodations are included while rural & urban minbaks are excluded. Comparable countries are selected based upon availability of lodging GDP statistics for all types of accommodations.

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Data Source

  • Korea: Lodging Business Ledger (MOIS), Tourist Accommodation Ledger (MCST)
  • USA: Census Database (STR)
  • Period: As at the end of 2021

※ General & residential accommodations other than rural and urban minbaks asre included for Korea. Life cycle was calculated as of December 31, 2021 or actual closure date. If there exists a discrepancy between data sources for an establishment, the discrepancy was settled through an algorithm before use.

Data Source

  • Korea: Lodging Business Ledger (MOIS), Tourist Accommodation Ledger (MCST), Economic Census (KOSIS), Hotel Operating Statistics (KHA), DART (FSS), Trends Report (STR)
  • USA: Compendium of Tourism Statistics (UNWTO), Census Database (STR), Trends Report (STR)
  • Period: 2005-2021

※ General & residential accommodations other than rural and urban minbaks asre included for Korea. Visibility was calculated as the number of establishments for which revenue data is available divided by the total number of establishments. If there exists a discrepancy between data sources for an establishment, the discrepancy was settled through an algorithm before use.

Data Source

  • Guests(Korea): Domestic Traveler Survey (MCST), International Traveler Survey (MCST), Hotel Operating Statistics (KHA)
  • Rooms(Korea): Lodging Business Ledger (MOIS), Tourist Accommodation Ledger (MCST)
  • Guests(USA): Compendium of Tourism Statistics (UNWTO), Trends Report (STR)
  • Rooms(USA): Compendium of Tourism Statistics (UNWTO), Census Database (STR)
  • Period: 2005-2020

※ General & residential accommodations other than rural and urban minbaks asre included for Korea. If there exists a discrepancy between data sources for an establishment, the discrepancy was settled through an algorithm before use.