Weak Korean Won Boosts Foreign Tourism, Challenges Domestic Travel Sector
As the Korean won continues to weaken, the travel and hotel industries are experiencing contrasting fortunes. The depreciation of the won has led to a surge in foreign tourists visiting South Korea, benefiting hotels and inbound travel agencies, which are enjoying an early holiday season boom. Conversely, outbound travel agencies catering to domestic travelers are facing challenges as demand for overseas travel declines.
According to the hotel and leisure industry on the 7th, the Grand Hyatt Jeju, operated by Lotte Tourism Development, reported a room occupancy rate of 76% as of December 5, a significant increase of 28 percentage points compared to 48% in early December last year. Incheon Paradise City also saw its occupancy rise from about 69% last year to 83% this year. The influx of Japanese and Chinese tourists utilizing casinos has rapidly filled the rooms at these hotels.
Hotels in Seoul are also experiencing increased occupancy rates. The Westin Chosun Seoul reported an 85% occupancy rate, up 5 percentage points from the same period last year, while the InterContinental Seoul Parnas reached a 95% occupancy rate, also an increase of 5 percentage points compared to the previous year. An industry insider remarked, "The year-end boom for high-end hotels in Seoul has come earlier than in previous years, significantly influenced by the rise in foreign tourists."
In fact, alongside the K-pop craze, the decrease in the won-dollar exchange rate has been steadily increasing the number of foreign visitors coming to South Korea. According to the Korea Tourism Organization, the number of foreign visitors has reached 15.82 million by October of this year, reflecting a 15.2% increase compared to the same period last year.
Inbound travel agencies welcoming these tourists are also enjoying the boom. The Korea Travel Agency Association reported that in the fourth quarter of last year, domestic travel agencies attracted about 650,000 foreign tourists. The industry anticipates that this number will increase by more than 20% in the fourth quarter of this year compared to the previous year, reaching approximately 780,000.
The contrasting situations highlight the varied impacts of the weak won on the tourism sector. While hotels and inbound travel agencies are capitalizing on the influx of foreign visitors, domestic travel agencies are scrambling to adapt to the changing landscape as Korean travelers reconsider their overseas trips.
According to the hotel and leisure industry on the 7th, the Grand Hyatt Jeju, operated by Lotte Tourism Development, reported a room occupancy rate of 76% as of December 5, a significant increase of 28 percentage points compared to 48% in early December last year. Incheon Paradise City also saw its occupancy rise from about 69% last year to 83% this year. The influx of Japanese and Chinese tourists utilizing casinos has rapidly filled the rooms at these hotels.
Hotels in Seoul are also experiencing increased occupancy rates. The Westin Chosun Seoul reported an 85% occupancy rate, up 5 percentage points from the same period last year, while the InterContinental Seoul Parnas reached a 95% occupancy rate, also an increase of 5 percentage points compared to the previous year. An industry insider remarked, "The year-end boom for high-end hotels in Seoul has come earlier than in previous years, significantly influenced by the rise in foreign tourists."
In fact, alongside the K-pop craze, the decrease in the won-dollar exchange rate has been steadily increasing the number of foreign visitors coming to South Korea. According to the Korea Tourism Organization, the number of foreign visitors has reached 15.82 million by October of this year, reflecting a 15.2% increase compared to the same period last year.
Inbound travel agencies welcoming these tourists are also enjoying the boom. The Korea Travel Agency Association reported that in the fourth quarter of last year, domestic travel agencies attracted about 650,000 foreign tourists. The industry anticipates that this number will increase by more than 20% in the fourth quarter of this year compared to the previous year, reaching approximately 780,000.
The contrasting situations highlight the varied impacts of the weak won on the tourism sector. While hotels and inbound travel agencies are capitalizing on the influx of foreign visitors, domestic travel agencies are scrambling to adapt to the changing landscape as Korean travelers reconsider their overseas trips.
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