Positive trend continues for South Korea’s tourism
For 2013, inbound and outbound tourism marked positive growth although the growth pace slowed down from the previous year. Overall, the industry performed well considering the negative external environmental factors such as political conflict, radioactivity issues from Japan and China’s policy revision to protect its own tourism which happened during the year.
China becomes the top inbound market to replace Japan
The long-term status of Japan as the largest source of inbound travellers to South Korea changed in 2013. Japanese travellers declined sharply due to political issues coupled with the depreciation of the Japanese yen. On the other hand, the ever-growing number of Chinese travellers reached its peak with impressive growth during the current year. As a result, the status of Japan and China was reversed in terms of total number of inbound trips.
Low-cost carriers see best performace with active expansion
Continuing the rapid growth from 2012, low-cost carriers performed at their best in 2013. Starting from the high popularity of domestic main routes, the expanded international destinations also marked great success. Top- ranking international routes included Incheon to Guam and Gimhae to Osaka or Fukuoka. The merits of low prices and increased availability of low-cost carriers will continue to promote healthy growth for the future. As a result, the local LCC market is likely to become more competitive amongst domestic and foreign players.
Overheated competition for hotel developments
In accordance with the fast-paced growth of inbound tourism coupled with the popular trend of locals staying in hotels has created a boom for hotel development and investment projects during recent years. As a result, the supply of hotel rooms is expected to exceed the demand in the near future. The main reason for explosive investments is the rise in expectation for profits from hotel businesses. The government’s push to relieve regulations and boost development has also supported this move. Current developments in progress will result in a significant increase of room supply by the year 2017.
Optimistic outlook for the industry
Looking into the forecast period, positive growth is expected for all categories of South Korea’s travel and tourism industry. The growth pace is likely to slow down for the major areas of inbound and outbound travel which have enjoyed high rates of success in the past few years. However, the nation’s strategic direction to strengthen tourism infrastructure from within and promote sales to underdeveloped inbound markets will bear fruit in the long term. Moreover, the changing perception of leisure and travel and preference for holiday taking amongst Koreans will contribute to increased trips for both outbound and domestic tourism.
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Overview
Discover the latest market trends and uncover sources of future market growth for the Travel And Tourism industry in South Korea with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Travel And Tourism industry in South Korea, our research will save you time and money while empowering you to make informed, profitable decisions.
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