Value context and insight. lkm@koreatimes.co.kr
US overtakes China in post-pandemic tourism spending in Korea
Foreign tourists in central Seoul's Myeong-dong, Feb. 14 / Yonhap
By Lee Kyung-min
U.S. inbound travelers spent the most in Korea last year, powered by growing demand to experience local culture due to the rise in global popularity of Korea's entertainment industry and pop culture, data showed Tuesday.
China’s spending in Korea by comparison remains stagnant due to Beijing’s years-long travel curbs, and has yet to pick up despite the resumption of Korea-bound group travel in the fourth quarter of last year.
Inbound tourists to Korea spent their money on food, beverages and singing rooms. In addition, they preferred large retail malls to department stores and duty free shops.
According to data from BC Card, U.S. tourists' consumption accounted for 19.8 percent of the total foreign tourism spending last year, up 13.8 percentage points from 6 percent in 2019.
Japan was the next big spender, registering an increase of 7.7 percentage points, followed by Taiwan, the U.K. and Thailand.
Chinese tourists took up only 15.7 percent of the total last year, down significantly from 66.5 percent in 2019.
U.S. tourists increased spending on casinos and pubs compared to 2019, which resulted in their entertainment spending in Korea inching up to 5.1 percent last year, rising from 2.4 percent in 2019.
Over 71 percent of foreign tourism spending occurred in Seoul. Of note was the rapid rise of Seongsu-dong in eastern Seoul's Seongdong District. The area is packed with coffee houses, shopping malls and street vendors selling handmade goods. Also popular are unmanned photo shops and Korean singing rooms.
Sales in Jung District and Songpa District — central and southern Seoul districts housing large duty free shops and department stores — declined by as much as 90 percent from four years ago.
More appealing to inbound travelers were Seongsu-dong, as well as Yeouido in Yeongdeungpo District and Hannam-dong in Yongsan District. The three districts registered 973 percent, 479 percent and 429 percent increases each in sales last year from four years earlier.
Transport sales in Busan including the high-speed KTX bullet train and regular trains as well as express buses and taxis increased last year.
The spending is explained by many fans of boy band BTS visiting tourist destinations in the coastal city, as recommended by the global pop sensation.
The Bank of Korea current account data showed that Korea’s travel account — the ratio of the amount of spending by inbound tourism and outbound tourism — posted a deficit of $12.5 billion (16.7 trillion won) in 2023.