Busan Fights BTS-Driven Hotel Price Hikes with Free Homestays

With global K-pop act BTS set to take the stage in Busan next week, international fans battle a lodging market destabilized by extreme price hikes. To counter such surges, the Busan Metropolitan City is implementing an economic defense that will allow foreign fans to stay in the private homes of the city’s citizens for free.

According to a report by The Korea Times, the municipality’s citizen homestay program will be running for three days, from June 12 to 14, to balance the local accommodation rates. Anticipation among fans regarding the concert is heightened because Busan is the hometown of band members Jimin and Jungkook. Also, the fact that the scheduled June 12 and 13 Busan concert dates mark the group’s debut anniversary, further adds to the excitement of the fans, thereby causing the Busan authorities to project a tourist influx that is far higher than usual.

Room Rates Jump 2.4x as BTS Fans Flood Busan

The accommodation demand shock in Busan caught regulators' attention early. A January survey by the Korea Fair Trade Commission and the Korea Consumer Agency tracked 135 properties, including 52 hotels, 39 motels, and 44 vacation rentals. The tracking of these properties, which were reportedly listed on key booking platforms, revealed that the average one-night rate for the concert weekend hit ₩433,999 (~ $283 USD). That figure represents a 2.4-fold increase when compared to the weekends before and after the BTS concerts.

Busan Opens Free Citizen Homestays for Global Fans

With such market instability in play, the Busan authorities have begun running a fair-pricing campaign since last month while also increasing state-backed alternatives. Alongside expanding city-run public accommodation capacities to house roughly 1,400 people, officials are also leaning on local hospitality. To avail the homestay program, global fans can reserve a two-night stay at private residences via Visit Korea or k-popstay.wehome.me.

Even though the bookings are free, the city authorities have kept a security deposit of  ₩50,000 (~ $33) to avoid ghost bookings and no-shows. Upon check-in, this deposit will be completely refunded as a local tourism voucher, which can be used at the traditional markets and local venues. To prevent liability concerns, the city will also cover host insurance premiums for personal injury and property damage within its available budget.

Speaking on the initiative, Kim Bong-cheol, director of the city's digital economy office, stated that the initiative aims to cement Busan's image as a warm, fair tourism destination. According to a statement noted in a Korea Times report, Kim also highlighted that the initiative aims “to establish the citizen homestay program as a go-to alternative accommodation model for future large-scale international events.”