North Korea’s leader Kim Jong Un debuts billion-dollar beach resort while brandishing a Gucci-clad family, signaling the secretive nation’s desperate attempt to boost tourism despite international sanctions and border closures.
Key Takeaways
- Kim Jong Un inaugurated the Wonsan-Kalma coastal resort capable of hosting 20,000 visitors annually, calling it “one of the greatest successes this year”
- The luxury destination will initially welcome domestic tourists only, with Russian visitors likely to be the first international guests permitted entry
- North Korea’s heavy investment in tourism development comes amid crippling economic sanctions and continued isolation due to its nuclear weapons program
- Kim’s wife Ri Sol-ju appeared carrying a Gucci bag, raising questions about potential violations of UN sanctions on luxury goods
- The resort’s opening was delayed for years due to construction issues and pandemic restrictions
Luxury Facade in an Isolated Economy
North Korean leader Kim Jong Un officially opened the Wonsan-Kalma coastal tourist zone with great fanfare, marking what state media called a milestone in the country’s tourism industry. The sprawling beachfront complex features modern hotels, restaurants, swimming facilities, and recreational areas designed to accommodate nearly 20,000 guests annually. Despite the impressive scale of the project, the resort currently faces a significant challenge – a near-complete absence of foreign tourists due to North Korea’s strict border controls and international sanctions. The project represents a substantial financial gamble for one of the world’s poorest countries, which continues to prioritize military spending over economic development.
Kim described the resort as “the proud first step” in North Korea’s tourism development, signaling his regime’s desperate search for new revenue streams amidst crippling economic sanctions. The project has been in development for years, with its original October 2019 opening delayed due to construction problems and later by the COVID-19 pandemic. While North Korea’s leadership portrays the resort as world-class, experts question whether the isolated nation can attract sufficient tourists to make the massive investment economically viable, especially as its borders remain largely closed to international visitors.
Family Affair Raises Eyebrows
Kim Jong Un made the resort opening a family affair, bringing along his wife Ri Sol-ju and daughter Kim Ju-ae, in a carefully orchestrated public appearance covered extensively by state media. The family’s presence at the ceremony highlighted the personal importance Kim places on the project. However, international observers noted that Ri Sol-ju carried what appeared to be a Gucci handbag during the visit, potentially violating UN sanctions prohibiting luxury goods imports to North Korea. This conspicuous display of wealth stands in stark contrast to the economic hardships faced by most North Korean citizens and raises questions about the regime’s commitment to compliance with international restrictions.
“Kim Jong-un is more accustomed to overseeing ballistic missile launches and political purges, but this week the North Korean leader opted for a change of pace with a family visit to a new beach resort – the vanguard in a tourism drive that may one day include foreign visitors.”
The presence of Kim’s daughter at the ceremony also fueled ongoing speculation about succession planning in the secretive regime. Analysts have noted Kim Ju-ae’s increasingly prominent public role in recent years, suggesting she may be being groomed for future leadership. The family’s public tour of the resort’s amenities, including swimming pools and beachfront facilities, presented a carefully curated image of North Korean progress and prosperity that contradicts widespread reports of food shortages and economic struggles throughout the country.
Russian Tourists First, Others Wait
While North Korea’s borders remain largely closed to foreign visitors, Russian Ambassador Alexander Matsegora and embassy staff attended the resort’s opening ceremony, underscoring the strengthening ties between Pyongyang and Moscow. North Korea began accepting limited numbers of Russian tourists in February 2024, though these visits were temporarily paused in March. The privileged position of Russian visitors reflects North Korea’s growing alliance with Russia, which has deepened since North Korea reportedly sent troops to support Russia’s invasion of Ukraine and the two countries reopened a direct passenger train route between their capitals.
“Kim expressed belief that the wave of the happiness to be raised in the Wonsan Kalma coastal tourist area would enhance its attractive name as a world-level tourist cultural resort”.
Chinese tourists, who traditionally formed the largest group of foreign visitors to North Korea before pandemic border closures, still face restrictions on group tours to the country. Western tourists remain entirely unwelcome for now, though some tour operators catering to adventure travelers see North Korea as a potential niche destination for those seeking unconventional experiences. The regime faces significant hurdles in attracting international visitors beyond its Russian allies, including ongoing political tensions, security concerns, and the limited appeal of a heavily monitored and restricted tourism experience. Without foreign currency from tourism, the economic viability of the massive resort project remains questionable.
Economic Desperation Behind Tourism Push
The Wonsan-Kalma resort represents part of Kim Jong Un’s broader strategy to transform Wonsan, a coastal town where he spent part of his childhood, into a tourism hub. The location previously hosted a missile testing site, highlighting the dichotomy between North Korea’s military ambitions and its economic needs. Tourism development offers one of the few potential revenue sources not completely blocked by international sanctions targeting North Korea’s nuclear weapons program. However, the effectiveness of this strategy remains hampered by the regime’s own restrictions on foreign visitors and reluctance to open the country to outside influences.
Despite substantial investment in the Wonsan-Kalma resort, North Korea remains one of the world’s poorest countries, with resources consistently diverted to military spending and monumental projects glorifying the regime. The contrast between the gleaming new tourist facilities and the economic reality faced by most citizens underscores the distorted priorities of the leadership. Without substantial changes to North Korea’s approach to international relations and internal restrictions, the ambitious tourism development plans are likely to fall far short of generating the economic benefits the regime desperately needs to sustain itself amid ongoing sanctions and isolation.
