Title: Chinese Group Tourism Reopens in Korea, Boosting Economy and Local Businesses
Date: August 13, 2023 (Updated: August 14, 2023)
Byline: [Author’s Name]
Chinese group trips to Korea have resumed, sparking optimism for a recovery in the domestic tourism and distribution industries. Incheon Port Terminal welcomed 118 Chinese tourists, marking the reopening of the Chinese waterway after 3 years and 7 months. Full-scale group tours are expected to pick up from September onward, with popular destinations like Myeongdong Street witnessing a surge in preparations to welcome Chinese visitors.
As Chinese tourism authorities allow group travel to Korea, tourists from China are excited to explore major tourist spots once again. The Myeongdong district in Seoul, which was significantly impacted by the THAAD incident and the Covid-19 pandemic, is especially eager to normalize their sales. Lotte Tourism Development and Ranjeong Jeju Development, both of which built facilities in Jeju Island catering to Chinese tourists, anticipate a boost in profitability.
The Incheon Port Authority (IPA) announced that the New Golden Bridge V, a Korea-China international passenger ship, arrived at Incheon Port International Passenger Terminal on August 12th. Of the 118 passengers, 84 were identified as part of group trips. This marks a significant milestone as international passenger ships between Korea and China had halted operations since January 2020. With the resumption of Chinese group tourism, it is expected that major tourist destinations in Korea will experience a revival, with sales projected to restore to pre-Covid-19 levels after September.
Preparations are in full swing on the streets of Myeongdong for the anticipated influx of Chinese tourists. Local vendors are implementing various strategies such as installing LED signboards to attract the attention of Chinese visitors. Business owners are optimistic about the surge in sales, acknowledging the influential role Chinese customers play. In the hospitality sector, domestic hotels are actively preparing to handle inquiries from Chinese travel agencies for group tour packages. Shilla Stay, a business hotel under Hotel Shilla, has initiated product planning in collaboration with a travel agency specialized in attracting Chinese tourists. Lotte Hotel is also making arrangements to cater to Chinese tourists, focusing on properties with a high occupancy rate among Chinese group travelers, such as L7 and Citi Hotel.
Jeju Island, the second most popular tourist destination for Chinese after Seoul, is anticipating increased visitor numbers as it allows visa-free entry. Lotte Tourism Development (Jeju Dream Tower) and Ramjeong Jeju Development (Jeju Shinhwa World), resorts designed with Chinese tourists in mind, are swiftly adapting to the changing business environment. Lotte Tourism Development has revamped its computer system at the Grand Hyatt Hotel in the resort, enabling Chinese group tourists to place orders in Chinese at food and beverage outlets. Ramjeong Jeju Development is actively studying tourist trends to tailor products according to the preferences of Chinese tourists.
With the expansion of direct flights connecting Korea and China and the reintroduction of group tourists, both companies are expected to witness improved turnover. For Lotte Tourism Development, sales in the previous year reached KRW 183.7 billion, showing a significant increase of 71.7% compared to the previous year, while operating losses decreased from KRW 131.3 billion to KRW 118.7 billion. Ramjeong Jeju Development also experienced growth, with sales rising by 13.9% from KRW 204.8 billion to KRW 232 billion during the same period. Operating losses declined from KRW 30.4 billion to KRW 12.9 billion.
The reopening of Chinese group tourism in Korea is expected to provide a much-needed boost to the economy and local businesses. Direct flights and visa-free entry to Jeju Island further enhance the appeal of Korean destinations to Chinese travelers. As the tourism and distribution industries regain momentum, it is anticipated that the positive trend will continue to drive economic recovery in the coming months.
Contributors: Lee Mi-gyeong, Choi Hae-ryun
Contact: capital@hankyung.com
economy
Enter 2023.08.13 18:40 Edit 2023.08.14 00:32 Basis A15
“Dinghao” Youke is back
Resumption of entry for Chinese group touristsChinese waterway opened in 3 years and 7 months
118 people entered the Incheon Port Terminal
Full scale group tours after SeptemberMyeongdong Street’s ‘Youke Welcoming’ is in full swing
Jeju integrated resort sales are expected to improve
As Chinese group trips to Korea are allowed, expectations for a recovery in the domestic tourism and distribution industries are growing. Tourists shop at the flagship Lotte Duty Free Shop in Myeong-dong, Seoul on the 13th. Reporter Choi Hyuk “I came to Seoul with six friends from Henan, China. I plan to go shopping and go to restaurants. Group tours are allowed, so I think I’ll be coming often.”
Chinese tourists we met in a cosmetics store in Myeong-dong, Seoul on the 13th said this while putting mask packs in their shopping carts. As Chinese tourism authorities allow Chinese citizens to travel in groups to Korea, major tourist destinations in Korea are buzzing with anticipation. Merchants in Myeong-dong, which have been hit hard by the THAAD incident and the Corona 19 pandemic, are looking forward to normalizing their sales. Lotte Tourism Development and Ranjeong Jeju Development, which built facilities in Jeju Island with the Chinese ‘big hand’ in mind from the start of the development stage, are also expected to accelerate profitability improvement.
Myeong-dong is excited about the recovery of the commercial district
The Incheon Port Authority (IPA) announced on the 13th that the New Golden Bridge V, a Korea-China international passenger ship departing from Qingdao, China, entered the Incheon Port International Passenger Terminal on the 12th. Of the 118 passengers, 84 were identified as group trips. It has been 3 years and 7 months since January 2020 that international passenger ships between Korea and China resumed operations.
Starting with the waterway, major tourist destinations in Korea are expected to revive when Chinese group tourists enter the country again. Expectations are high that sales will recover to pre-COVID-19 levels after September, when Chinese group tourists are expected to enter the country in earnest.
The streets of Myeong-dong are in full swing preparing for ‘Welcome Youke’. Kang Min-soo, president of a stall selling glutinous rice cakes in Myeong-dong, said, “We plan to attach LED (light emitting diode) signboards on both sides of the stall so that Chinese tourists can see the stall from a distance. ” Kim Ho, the owner of the fruit stall, said, “Since Chinese customers are big customers, we expect sales to increase significantly when group tours start.” The domestic hotel industry has become busy in preparation for inquiries from Chinese travel agencies about planning group tour packages. Shilla Stay, a business hotel run by Hotel Shilla, started product planning in collaboration with a travel agency responsible for attracting Chinese tourists. We plan to introduce products for Chinese tourists only by specifying the location conditions of each Shilla Stay and the demand for Chinese tourists. Lotte Hotel has also started to prepare by arranging staff who can communicate in Chinese, focusing on hotels with a high occupancy rate of Chinese group tourists , such as L7 and Citi Hotel.
“A big hand is coming”… Jeju Spiral’s response
Jeju Island, which is the second most popular tourist destination for Chinese after Seoul, is also making waves because it allows visa-free entry. Lotte Tourism Development (Jeju Dream Tower) and Ramjeong Jeju Development (Jeju Shinhwa World), which designed the resort with the big Chinese names in mind from the beginning, also responded quickly. Lotte Tourism Development reorganized the computer system so that Chinese group tourists can order in Chinese at the food and beverage outlets of the Grand Hyatt Hotel in the resort. Ramjeong Jeju Development began to analyze the trend of tourists to develop products that suit the tastes of Chinese tourists.
Both companies are expected to accelerate their turnover in the surplus as the business environment improves with the expansion of direct flights connecting Korea and China, and the addition of group tourists. Lotte Tourism Development’s sales last year were KRW 183.7 billion, up 71.7% from the previous year. Operating loss decreased from 131.3 billion won to 118.7 billion won. Ramjeong Jeju Development’s sales increased 13.9% from 204.8 billion won to 232 billion won during the same period. Operating loss decreased from 30.4 billion won to 12.9 billion won.
Correspondents Lee Mi-gyeong/Choi Hae-ryun capital@hankyung.com
#Seoul #friends #China.. #Myeongdong #shook
