The separation of ‘tourist hotel business’ from the broadly defined hotel business under the ‘Accommodation Business Act,’ which was the starting point for lodging-related laws, began in 1976 with the implementation of the ‘Tourism Business Act,’ the predecessor of the ‘Tourism Promotion Act.’ The Tourism Business Act defined tourist hotels as ‘businesses that provide structures and facilities suitable for tourists’ lodging and offer food.’ In other words, it provided a comprehensive definition of lodging business in general similarly to the current ‘hotel business’ under the Tourism Promotion Act.
Then, with the addition of marine tourist hotels in 1982 and family hotels in 1986 to the ‘Enforcement Decree of the Tourism Business Act,’ the definition of tourist hotels gradually became more specific. In 1987, when the ‘Tourism Promotion Act’ replaced the Tourism Business Act, traditional hotels were added, followed by hostels in 2009, small hotels and medical hotels in 2014, reinforcing the current definition of tourist hotels. The current ‘Enforcement Decree of the Tourism Promotion Act’ defines tourist hotels as businesses that ‘provide facilities suitable for tourists’ lodging and make them available for use by tourists, along with facilities suitable for food, exercise, entertainment, recreation, performances, or training related to lodging.’ Annex 1 of the ‘Enforcement Decree of Tourism Promotion Act’ specifies the registration criteria for tourist hotels as follows:
- Must have at least 30 rooms equipped with bathrooms or shower facilities.
- Must have a system in place to provide services to foreigners.
- Must secure ownership or usage rights of the land and building. However, ownership must be secured if recruiting members.
Initially, the rating assignment was limited to tourist hotels. In other words, it was the type of lodging establishment closest to the conventional meaning of a hotel. However, in 2003, the scope of rating assignments was expanded to include the entire hotel industry, with the scale from 1 to 5 stars.
Meanwhile, Article 8 of the ‘Enforcement Decree of Tourism Promotion Act’ restricts the use of the term ‘tourist hotel’ in the name of a lodging establishment unless registered as a tourist hotel business. Initially, this restriction on the use of business names was not in place but was first introduced in 2002.
Tourist hotels cannot be sold fractional, but they can recruit members pursuant to Article 25 of the ‘Enforcement Decree of Tourism Promotion Act.’ Member recruitment was initially only allowed for timeshares and family hotels, but was expanded to the entire hotel industry in 2002.
