Reservations of Korea travel packages plummeted by more than 80 percent for the upcoming peak season this summer, amid concerns over the Middle East respiratory syndrome outbreak, a union of travel agencies said Monday.

According to the Korea Association of Travel Agents, about 200,000 foreign visitors booked Korean tour packages for July and August, down 82 percent from a year ago. This is expected to cause a loss of over 100 billion won ($90 million) in sales.

By nationality, the number of Japanese tourists declined by 84 percent to about 28,000 and Chinese visitors similarly dropped by 84 percent to some 132,000. The number of tourists from European and East Asian countries and the U.S. also fell by around 70 percent.

As part of its efforts to overcome the MERS crisis, the union said it would guarantee a MERS insurance program for all incoming foreign visitors.

Under the insurance package, they will receive 5 million won in treatment compensation if infected with MERS.

The union will also ensure 100 million won in compensation if travelers die within 20 days of being officially diagnosed with the disease.

The travel insurance will automatically be effective for those visiting the country from June 22-Sept. 21 without any registration necessary, the KATA said.

Regular visitors, such as green card holders, crewmen or those with a working visa will not qualify. Travelers who visited the Middle East will also be excluded, it said.

The measure followed an announcement by the Ministry of Culture, Sports and Tourism earlier this month that it would release a similar insurance package in a bid to help the ailing tourism industry.

Insurance businesses raised doubts over the efficacy of the program that they deemed “superficial,” as developing new insurance packages requires time and accumulated data, such as risk statistics.

By Lee Hyun-jeong (rene@heraldcorp.com)