Built with facilities that even the most discerning of travelers would find appealing, these luxury hotels stand in sharp contrast to the grey and dilapidated buildings that most North Koreans call home.
Containing spa facilities, fitness centers, and banquet rooms, it’s hard to understand what role these luxury hotels play in North Korea’s supposedly egalitarian and socialist system.
For example, a $1,500 one night stay in the VIP room of the Hyangsan hotel would cost nearly 85% of the average annual income of a North Korean.
Who then stays at these hotels, and why were they built?
As with many issues in North Korea, things are not always that clear.
Despite the high prices quoted in the receptions of some of these hotels, North Korea employs a two-tier pricing system that actually makes staying cost effective – or even free – for certain well-placed locals.
Domestic sports teams and musical groups performing at local venues form a large proportion of the heavily subsidized overnight stays in North Korea’s luxury hotels, and it’s almost certain that high ranking government and military officials also enjoy perks there from time to time.
But that doesn’t mean the hotels are used that often: the few tourists who do stay in North Korea’s luxury hotels routinely report that despite being fully staffed, the buildings are often completely unoccupied.
What then are the business imperatives driving the expansion of luxury hotels in North Korea? A difficult question to answer. But in spite of the challenges in finding customers, the industry continues to grow:
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