Korea’s tourism balance recorded a surplus of $260 million (approximately 387.5 billion won) in March, marking the first surplus in 11 years and four months, according to a report from Yanolja Research. This financial turnaround coincides with a record 4.74 million foreign tourists visiting Korea in the first quarter of this year.
Inbound Tourism Growth and Diversification
The first quarter of this year saw foreign tourist numbers reach an all-time high of 4.74 million. Growth was particularly strong in long-distance markets, with the Americas increasing by 55.1%, Europe by 30.7%, and Oceania by 67.1% compared to 2019 levels. The Asian market also exceeded its 2019 performance by 21.6%, indicating a global diversification trend in inbound tourism away from reliance on a single country.
China contributed the largest number of visitors at 1.42 million, surpassing its 2019 figures by 6.8% for the first time since COVID-19. Japan followed with 940,000 visitors, an 18.3% increase, and Taiwan with 543,000, up 93.1%. Hong Seok-won, a senior researcher at Yanolja Research, noted that Korea’s growth rate for Chinese tourists exceeded both China’s overall overseas travel growth and that of major Asian competitors. This suggests that some demand, potentially influenced by strained China-Japan relations, has shifted to Korea.
Shift in Tourist Spending Patterns
Total tourism income for the first quarter reached $5.84 billion (approximately 8.7 trillion won), an increase of 17.8% from 2019. However, the average per capita expenditure decreased to $1,231.4 (approximately 1.81 million won) from $1,290.4 (approximately 1.9 million won) in 2019.
This decrease in per capita spending is primarily attributed to a significant reduction in duty-free consumption. The number of duty-free shop users fell from 4.47 million in 2019 to 2.94 million this year. Sales per capita also plunged from $914.3 (approximately 1.35 million won) to $544.2 (approximately 800,000 won), leading to a total duty-free sales volume decrease from $4.09 billion (approximately 6 trillion won) to $1.6 billion (approximately 2.4 trillion won).
The rise in cruise tourists also had an impact, with 167,000 arrivals, a 10.9-fold increase compared to 2019. These visitors typically have shorter stays and lower per capita consumption.
Medical and Wellness Tourism Drives High-Value Growth
While duty-free consumption declined, medical tourism showed a clear growth trend. Medical tourism consumption increased 5.8 times, rising from 84.15 billion won in the first quarter of 2019 to 491.1 billion won this year. Jangsu-cheong, head of Yanolja Research, stated that