[Inside Chodong]The Future Of K-Tourism Lies In Integrated Resorts

Shift in Perception of Casino Tourism as a "Cash Cow"
Greater Emphasis on Infrastructure Experiences such as Accommodation, F&B, and Performances
Competition in Building and Expanding Resorts in Neighboring Countries such as Osaka, Japan
Risk

"We are working to leverage the advantages of urban casinos by linking them with K-culture, medical, and food facilities. In the mid- to long-term, we are also considering establishing our own business premises."

Doohyun Yoon, CEO of Grand Korea Leisure (GKL), which operates the foreigner-only casino Seven Luck, stated during the second work report session for public institutions under the Ministry of Culture, Sports and Tourism held last month, "GKL is in urgent need of organizational and facility innovation in order to overcome the limitations of leased business sites and to respond to changes in casino tourism, which is shifting to longer stays with families." He requested the government's attention to this matter. By referencing GKL's current reality of leasing hotel spaces in three major urban centers—Gangnam and Yongsan in Seoul, and Busan—Yoon highlighted the burden of rent and the issue of personnel bottlenecks, presenting the option of establishing GKL’s own business facilities as a possible solution.

Yoon's remarks led to the misconception that "GKL is pursuing the construction of a large-scale resort in the form of its own premises in downtown Seoul." In response, GKL clarified through a public disclosure that "Although we prepared to apply for a preliminary feasibility study to the Ministry of Economy and Finance regarding securing our own premises, the necessary requirements have not been fully met," adding, "Currently, there are no plans to pursue proprietary business facilities."

While Yoon’s comments ultimately amounted to a misunderstanding, the shift in casino tourism toward an extended-stay model is noteworthy. Unlike in the past, when casinos were mainly seen as cash cows for securing tax revenue for the central and local governments and for earning foreign currency, the current trend centers on "integrated resorts (IR)" that encompass not only casinos but also accommodations, food and beverage (F&B), performances, shopping, medical, and international conference facilities. The focus is now on the "experience" of tourists who stay at well-equipped integrated resorts and utilize a wide range of amenities.

According to the Nevada Gaming Control Board, which oversees the world’s largest tourism and entertainment city, Las Vegas, as of 2024, gaming (casino) revenue accounted for only 26.1% of the Las Vegas Strip, which is densely packed with hotels and casinos, while non-gaming sectors such as lodging, F&B, and performances accounted for a much higher share.

In line with this trend, neighboring countries in Asia and the Middle East are ramping up investments by building new integrated resorts or expanding existing facilities. Singapore’s iconic Marina Bay Sands (MBS) underwent a renovation of its three existing towers last year with an investment of USD 1.75 billion (approximately KRW 2.5 trillion). A project is also underway to add a hotel tower with 570 suites, a performance arena with 15,000 seats, MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities, and a new casino, targeting completion in 2031. In Japan, a consortium between MGM Resorts International and Orix is set to open the country’s first integrated resort in Osaka in 2030, backed by an investment of approximately KRW 12 trillion. Thailand, Vietnam, and the United Arab Emirates (UAE) have also joined the competition.

In Korea’s inbound tourism market, the consumer trend has shifted from group tours to an increasing share of individual travelers such as families or friends. Demand is growing not for duty-free shopping or casinos, but for enjoying hotels, performances, and F&B. For instance, Paradise posted KRW 316.7 billion in revenue from casinos through the third quarter of last year, while revenue from hotels and integrated resorts was even higher at KRW 524.8 billion.

However, the domestic market cannot match these neighboring countries in terms of investment scale or institutional support. Instead, if Korea can attract cultural arts, cosmetics, and food products—areas that have experienced a renaissance overseas alongside the Korean Wave—into its integrated resorts, these contents could become powerful assets in the inbound tourism market. In fact, in Yeongjongdo, Incheon, hosting large-scale events such as performances and exhibitions by renowned domestic and international artists has attracted numerous tourists who stay at integrated resorts. Incentive tourism for global companies, experiential tourism based on winter sports like skiing, and wellness tourism that highlights natural landscapes are also areas where Korea can differentiate itself.

When the Osaka integrated resort opens, its annual gross gaming revenue (GGR) from casinos alone is expected to reach KRW 4.9 trillion. This means that a single integrated resort in Japan will surpass the total GGR of all casinos in Korea, which stood at KRW 3.2 trillion as of 2024. This poses the risk of Korea losing its tourism market share and seeing related industries contract. If the government and regulatory authorities remain stuck in the perception that casinos are gambling businesses and that granting business licenses is synonymous with providing special privileges, Korea will remain wedged in the middle in the fierce competition for integrated resorts.

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