Economic Motivations: More Than Just Leisure
North Korea’s economy is in dire straits, heavily affected by international sanctions, limited trade, and long-standing structural inefficiencies. Tourism—especially from foreign sources—represents one of the few legitimate income streams the country can potentially develop without running afoul of global embargoes.
The government has previously tried to leverage this sector with mixed results. Joint projects like the Mount Kumgang Tourist Region, developed in cooperation with South Korea’s Hyundai Asan in the late 1990s, initially showed promise. However, after a South Korean tourist was shot by a North Korean soldier in 2008, the project collapsed.
Since then, North Korea has made attempts to go it alone, developing resorts and cultural attractions with the hope of drawing in independent tourists, especially from China and Russia. The Wonsan Kalma Beach Resort appears to be the latest effort in this direction, offering high-end accommodations and facilities that suggest a move toward economic diversification—even if the underlying structure remains tightly controlled by the state.