Haegumgang Hotel: The Heartbreaking and Unpredictable Tale of North Korea’s Floating Resort

Once an elite five-star getaway floating above the Great Barrier Reef, the hotel now lies abandoned in a North Korean harbor, just a short drive from the heavily guarded Demilitarized Zone that divides North and South Korea.
The world’s first floating hotel embarked on a strange 10,000-mile journey over three decades ago, beginning with extravagant helicopter trips and gourmet meals, but ultimately ending in tragedy.
Now destined for demolition, this rusted ship with a rich history faces an uncertain and bleak future.
Intelligence sources in South Korea report that in 2022, the North Korean government demolished Hotel Haegumgang, along with the Onjonggak Rest House, a former site for televised reunions between families separated by the DMZ.
Discover more about the cultural and historical importance of Mount Kumgang, and why the floating hotel may be lost to history.
This marks a sorrowful conclusion to a vibrant and extraordinary tale, which continues in the following sections.
An Evening at the Reef

The floating hotel was conceived by Doug Tarca, an Italian-born diver and entrepreneur who had settled in Townsville, located on the northeastern coast of Queensland, Australia.
“He was deeply passionate about the Great Barrier Reef,” says Robert de Jong, a curator at the Townsville Maritime Museum. In 1983, Tarca founded Reef Link, a company that transported day-trippers by catamaran from Townsville to a reef site just offshore.
“Then he had an idea: 'Why not let people stay on the reef overnight?'”
Initially, Tarca considered anchoring retired cruise ships to the reef, but quickly realized that building a custom floating hotel would be more cost-effective and environmentally sustainable. Work on the project began in 1986 at Singapore’s Bethlehem shipyard, a subsidiary of a now-defunct U.S. steel company.
“It’s a horseshoe-shaped reef, with calm waters in the center—perfect for a floating hotel,” says de Jong.
The hotel was anchored to the ocean floor using seven massive anchors, strategically placed to avoid any damage to the reef. No waste was dumped into the ocean, water was recirculated, and all garbage was transported to a mainland disposal site, minimizing the environmental footprint of the hotel.
Officially named the Four Seasons Barrier Reef Resort, the hotel opened its doors to guests on March 9, 1988.
“It was a five-star experience and not exactly affordable,” recalls de Jong. “With 176 rooms and a capacity for 350 guests, the hotel featured a nightclub, two restaurants, a research lab, a library, and a shop selling diving equipment. There was even a tennis court, though I suspect most of the tennis balls ended up in the Pacific Ocean.”
A bottle of whisky

The hotel initially generated a lot of excitement, becoming a paradise for divers. Even those without diving experience could marvel at the stunning views of the reef, thanks to a special submersible called The Yellow Submarine.
However, it quickly became apparent that the challenges posed by bad weather on the guests had been significantly underestimated.
“If the weather turned rough and you needed to return to town for a flight, the helicopter couldn’t fly, and the catamaran couldn’t sail, which caused considerable inconvenience,” explains de Jong.
Interestingly, hotel staff resided on the top floor, the least stable area in a floating hotel due to its tendency to sway the most. According to de Jong, staff used an empty whisky bottle hanging from the ceiling to monitor sea conditions: when it swayed uncontrollably, they knew many guests would soon be feeling seasick.
“That was likely one of the main reasons the hotel never truly achieved commercial success,” he says.
There were additional challenges: a cyclone hit the hotel just a week before its grand opening, destroying a freshwater pool beyond repair. A World War II-era ammunition dump was discovered just two miles away, scaring away potential guests. And, aside from diving and snorkeling, there wasn’t much else to do.
Just one year after opening, the Four Seasons Barrier Reef Resort became too costly to maintain and shut down, never reaching full occupancy.
“It quietly faded away,” recalls de Jong. “It was eventually sold to a company in Ho Chi Minh City, Vietnam, which hoped to attract tourists to the site.”
An unexpected destination

In 1989, the floating hotel embarked on its second voyage, traveling 3,400 miles north. Renamed the Saigon Hotel, or more casually, 'The Floater,' it stayed moored on the Saigon River for nearly a decade.
“It became quite successful, and I believe the key was that it wasn’t isolated but rather located on a waterfront. While it was floating, it was still connected to the mainland,” says de Jong.
However, in 1998, The Floater ran into financial trouble and closed down. Rather than being scrapped, it found a surprising new purpose when it was purchased by North Korea to draw tourists to Mount Kumgang, a picturesque region near the border with South Korea.
“At the time, the two Koreas were making efforts to build bridges and engage in dialogue. However, many hotels in North Korea weren’t exactly welcoming to tourists,” says de Jong.
After another 2,800-mile journey, the floating hotel embarked on its third chapter, now renamed Hotel Haegumgang. It opened in October 2000, managed by the South Korean company Hyundai Asan, which also ran other local facilities and offered packages for South Korean visitors.
Over the years, the Mount Kumgang area drew more than 2 million tourists, according to Hyundai Asan spokesman Park Sung-uk.
“Furthermore, the Mount Kumgang tour played a key role in improving inter-Korean relations, serving as a crucial site for the reunion of separated families and providing a space to heal the wounds of national division,” he adds.
A tragic turn

In 2008, a North Korean soldier shot and killed a 53-year-old South Korean woman who had accidentally crossed into a military zone beyond the designated tourist area at Mount Kumgang. As a result, Hyundai Asan halted all tours, and Hotel Haegumgang was closed along with the rest of the facilities.
It remains unclear whether the hotel has operated since that incident, but certainly not for South Korean tourists.
“Details are scarce, but I believe the hotel has only been in use for members of North Korea's ruling party,” says de Jong. On Google Maps, it is still visible, moored at a pier in the Mount Kumgang area, slowly rusting away.
In 2019, North Korean leader Kim Jong-Un visited the Mount Kumgang tourist area and criticized many of the facilities, including Hotel Haegumgang, for being dilapidated. He ordered the demolition of several buildings as part of a plan to redesign the area in a style more aligned with North Korean values. However, the pandemic intervened, putting those plans on hold. It remains uncertain whether the demolition will happen anytime soon, or at all.
In the meantime, the floating hotel endures, its legacy preserved. It is likely to remain unique, as the concept of floating hotels never really gained widespread popularity.
Or – in a way – it already has.
“The ocean is full of floating hotels,” says de Jong. “They’re just known as cruise ships.”

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