"They Came to Spend in Korea": The Stocks Smiling Amid the Influx of Tourists [Weekend Money]

Travel Account Surplus Grows With Surge in Foreign Tourists to Korea

Hotels and Casinos Expected to Benefit

On June 9th, tourists are taking photos and making memories on Myeongdong Street in Jung-gu, Seoul. Photo by Yonhap News

As the number of foreign visitors traveling to Korea continues to rise significantly, there is an outlook that hotel and casino stocks will benefit from this trend.

According to KB Securities and the Bank of Korea on August 9, the general travel balance in June posted a surplus of 600 million dollars, marking the second-highest amount on record since October 2008. KB Securities analyzed that the number of inbound tourists in June increased by 23.1 percent year-on-year, and the average amount spent per inbound tourist also grew by 21.9 percent, attributing much of this to factors such as the BTS concert held in Busan.

KB Securities expects the travel balance surplus to improve further in the third quarter due to the summer peak season. Choi Yonghyun, a researcher at KB Securities, stated, "Typically, both inbound and outbound tourist numbers increase compared to the previous quarter in the third quarter." He added, "Recently, while the growth rate of inbound tourists remains in the 20 percent range, the growth rate for outbound tourists has declined. Therefore, the inbound tourism growth trend is expected to be even stronger in the third quarter."

Choi also noted, "From a macroeconomic perspective, fuel surcharges are expected to decrease in the third quarter compared to the second quarter, while the value of the Korean won is likely to rise." He explained, "A reduction in fuel surcharges will boost both inbound and outbound travel demand, and an appreciation of the won should drive growth in outbound tourism." However, he added that, "Compared to the past, the value of the won still remains low, so the actual impact is limited."

KB Securities pointed out that, within the leisure industry, hotels and casinos are positioned to benefit the most. Choi emphasized, "From a top-down perspective, the leisure industry is very attractive, as the travel balance flipped from a deficit to a surplus starting in 2026. Even from a bottom-up perspective, individual company performance continues to show growth, which is positive."

He further explained, "For our top pick—hotel stocks—we believe the steady increase in inbound tourist demand will drive double-digit growth in average daily rates (ADR) for hotel rooms, and we expect this to narrow the valuation gap with global hotel stocks." He continued, "Casino stocks are also attractive; despite recent share price declines, their valuation appeal has increased, while their earnings growth trend remains robust."

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