'Visa-Free' Chinese Tourists Up 20%... Spending Declines

First Month of Visa-Free Entry in October Sees 20% Surge in Visitors Year-on-Year
Group Tour Resumption and Air Route Normalization Drive Growth
Spending Recovery Remains a Challenge Amid Economic Slowdown

Chinese tourism to Korea is rebounding. The rapid recovery in demand is being driven by the government's decision to allow group visa-free entry, the Chinese government's resumption of group tours, and the normalization of air routes between Korea and China. However, there are assessments that spending recovery is lagging, as evidenced by declining duty-free sales due to weakened consumer spending power. Industry experts are pointing out that, in addition to extending the visa-free policy, follow-up measures are needed to enhance both the value of stay and the quality of spending.

According to the Korea Tourism Organization, 472,477 Chinese tourists visited Korea in October alone, a 20.5% increase compared to the same period last year (392,230). The cumulative number of visitors through October reached 4,709,269, up 17.8% from the same period last year (3,998,646), and has already surpassed last year's total of 4,603,273 with two months remaining in the year.

The biggest driver behind the increase in Chinese tourists is the resumption of group tours. After the Chinese government lifted its ban on group tours to Korea in 2023, travel agency-led package sales have fully resumed. In line with this, the Korean government has also allowed visa-free entry for Chinese group tourists for up to 15 days from September 29 of this year to June 30 of next year. Given that group packages account for more than half of all tourists from China, this policy was expected to have an immediate scale effect.

The normalization of air routes has also contributed to the recovery. As air supply between Korea and China, which had decreased during the COVID-19 pandemic, has gradually expanded, the burden of airfare has been significantly reduced. With major routes recovering to 70-90% of pre-pandemic levels, the expansion of accessible air regions has once again highlighted Korea's appeal as a nearby overseas destination for Chinese travelers, leading to an increase in both group and individual visitors.

With the rise in Chinese tourists, there are growing calls to extend the visa-free entry system. At a meeting of the Korean Chamber of Commerce and Industry's Culture and Tourism Industry Committee on October 28, the tourism industry recommended extending the visa-free entry policy for Chinese visitors. They argue that the policy has a significant effect on attracting tourists and generating economic ripple effects, making further extension necessary. Since China recently extended its visa-free entry policy for Koreans by one year, until the end of next year, some have also suggested that an extension would be appropriate as a matter of diplomatic reciprocity.

In fact, the spending by Chinese tourists in Korea is higher than that of tourists from other Asian countries. According to the Ministry of Culture, Sports and Tourism, the average expenditure per Chinese tourist visiting Korea last year was $1,859 (about 2.73 million won). This amount far exceeds that of Japanese tourists ($984), as well as tourists from Taiwan ($1,489), Vietnam ($1,472), Thailand ($1,580), and the Philippines ($1,438).

The number of Chinese tourists visiting Korea is expected to continue growing as long as group tours recover, air routes expand, and the influence of K-content remains strong. In particular, significant increases are anticipated during major Chinese holidays such as the Lunar New Year. Additionally, as the Chinese economy slows and youth unemployment rises, there is a growing preference for low-cost, short-distance travel, which is favorable for Korea. The trend among younger generations toward short-term, experience-oriented trips is also expected to benefit Korea.

However, the scale of spending is unlikely to reach explosive levels seen in the past. Due to the economic slowdown, consumer spending growth is limited, making it difficult for the luxury and bulk shopping model to recover to previous levels. In fact, the Korea Duty Free Shops Association reported that duty-free sales in October reached 1.0483 trillion won, a 5.7% decrease from the same period last year. An industry official commented, "The current visa-free policy should be understood as a kind of catalyst. While it lowers barriers to entry and increases the number of visitors, additional policies and service innovations will be necessary to achieve long-term growth and sustainability in tourist spending."

This content was produced with the assistance of AI translation services.