North Korea’s Wonsan-Kalma Resort: A Costly Gamble Masking Economic and Diplomatic Realities

North Korea is set to open its flagship Wonsan-Kalma beach resort next week, a grand project touted by leader Kim Jong Un as a landmark achievement in developing the country’s tourism industry. However, this lavish development masks harsh realities about Pyongyang’s economic desperation and diplomatic isolation.

The Wonsan-Kalma zone boasts hotels and amenities designed to host nearly 20,000 guests, promising sea swimming, sports, dining, and recreation. Official state media celebrated the inauguration with high praise from Kim himself who hailed it as “one of the greatest successes this year” — yet crucial details remain undisclosed. Notably absent is any clear timeline for reopening North Korea’s borders fully to foreign tourists.

This silence speaks volumes. Since early 2020, Pyongyang has maintained strict border closures citing COVID-19 precautions, but experts point to other factors further delaying international tourism: ongoing tensions with the U.S. and South Korea, fears over Western influence tarnishing the regime’s image, and deteriorating relations with China—the country that once funneled over 90% of North Korean visitors.

While modest openings to Russian tourists commenced in February 2024 amid deepening military cooperation between Pyongyang and Moscow, Chinese group tours remain stalled. Reports indicate unresolved issues between North Korea and China persist despite their historical ties. Even the presence of Russian diplomats at the resort launch — contrasted with a reported absence of Chinese officials — signals shifting alliances driven by geopolitical calculus rather than genuine economic partnership.

Behind the scenes lies an uncomfortable truth: North Korea has committed vast resources to building a tourism infrastructure that may never achieve financial viability without robust foreign influxes. Domestic tourists alone cannot sustain such expensive projects in a nation facing chronic shortages and sanctions-induced stagnation.

This grandiose investment reflects Kim’s strategic gamble to jumpstart an economy crippled by years of sanctions and pandemic isolation while wielding tourism as soft power propaganda. Yet his approach disregards critical structural weaknesses including limited diplomatic channels—especially with Washington and Seoul—and persistent global mistrust stemming from Pyongyang’s nuclear ambitions.

Despite occasional overtures from former U.S. President Donald Trump expressing interest in dialogue linked to North Korean economic potential—including his public nod toward Wonsan-Kalma as a symbol of opportunity—Pyongyang has rebuffed offers repeatedly since nuclear diplomacy faltered in 2019.

The whole scenario underscores an inconvenient reality for those pushing America First principles: authoritarian regimes like North Korea leverage flashy projects for internal messaging while perpetuating global instability through provocative policies. The regime’s continued prioritization of military expansion over genuine engagement reinforces its status as a security threat demanding vigilance rather than naive optimism.