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As the world emerges from the shadows of the Covid-19, South Korea’s tourism sector is witnessing a remarkable rebound. Renowned for its breathtaking landscapes, the nation is strategically leveraging a diverse array of events to attract tourists in 2023.
Notable among these are the Seoul Lantern Festival and the 2023 K-Link Festival featuring popular K-Pop stars. Also, the country will host the 2024 Winter Youth Olympics next year.
Besides, the country’s distinctive culture, blending the contemporary appeal of K-pop with the timeless charm of traditional arts, has captured the attention of a global audience. This cultural magnetism forms a sturdy foundation for enterprises within the country’s flourishing tourism sector.
Before the onset of Covid-19, South Korea recorded 17.5 million visitors in 2019. Notably, a record-breaking $21.5 bn was reported in 2019 for tourist expenditures in South Korea, with an average spending of $1,230 per visitor.
However, the pandemic negatively impacted South Korea’s tourism for nearly two years. In 2021, only about 967,000 foreign tourists ventured into South Korea. However, the numbers nearly tripled to approximately 3.198 million in 2022. The positive trajectory continues into 2023, with an estimated 6.5 million foreign tourists visiting the country from January to August, as per government data.
Additionally, the country’s tourism market, currently valued at $35.8 mn, saw international tourist arrivals rise above 1 million in July. This happened for the first time since the start of the Covid-19 pandemic. Subsequently, in September, the growth rate for tourist arrivals was 227.3%, amounting to 1.094 million foreign tourists.
“South Korea’s tourism sector has been strengthening during 2023 and is expected to show further improvement during 2024, as international tourist travel in the Asia-Pacific region continues to recover,” says S&P Global.
Government measures driving South Korea’s tourism sector
Experts believe that a rebound in South Korea’s tourism industry has been facilitated by a series of government measures aimed at boosting the sector. This year, South Korea has allocated significant financial resources to support tourism-related initiatives.
To promote domestic travel, the government plans to subsidise local trips for employees of small and mid-sized firms. Lowered railroad fares and discount coupons for popular tourist attractions are also set to further incentivise travel.
Moreover, the 6th Master Plan for Tourism Development (2023-2027) by the government delineates a strategic framework aimed at the expansion of the tourism sector. To enhance tourism exports, the plan recommends diversifying the inbound market and integrating promotional activities with K-culture. The government’s 2024 tourism budget of 1.36 tn won ($1 bn) will focus on drawing foreign tourists to the land and plugging in the tourism deficit.
“Seoul’s government has announced measures that will ease travel restrictions and is targeting 30 million tourists by 2027…. (it) intends to achieve this number through digital tourism platform services and Korean-content storytelling tour programs, featuring cities such as Gyeongju, Jeju City, Suwon, Busan, Chuncheon, and, of course, the capital Seoul,” says GlobalData.
Looking ahead, South Korea’s tourism market is expected to expand at a CAGR of 8.10% between 2023 and 2028, amounting to $77.7 mn, as per Future Market Insights. The market research firm also informs about a few challenges facing South Korea’s tourism.
“Due to a few factors, it can be difficult to promote South Korea’s tourism market…Political tensions spurred on by unsolved problems with neighbors like North Korea, China, and Japan have made this region a potential hotspot that could suddenly erupt,” it adds. Along these lines, South Korea’s reliance on Chinese and Japanese tourists for a significant portion of its international arrivals can pose significant challenges in the future.
