The purpose of this study is to analyze empirically the effect of psychological empowerment of employees in 5-star hotels of Jeju Island on job commitment and customer orientation. The result of this study shows the higher the level of psychological empowerment of hotel employees, the more positive effect of job involvement and customer orientation. Also the higher degree of job commitment is more directly related to customer orientation.BR Based on the analysis, the following implications are suggested. First, managers need to establish systematic empowerment and develop continuous educational programs and management. Second, it is necessary that employees are able to make their own judgments and deal with the potential service related problems quickly by giving empowerment to hotel employees. Third, it is essential that employees can feel their jobs are of valuable in the company by creating a variety of training programs related to job assignment. Therefore the higher motivation on psychological empowerment of hotel employees is expected to have positive effect on strengthening hotel competitiveness.