Foreign tourist spending is spreading beyond Seoul to regional areas. Department stores and cosmetics shops, which primarily catered to local residents and domestic tourists, are seeing significant increases in foreign sales. Retail companies are renovating key regional stores and expanding tourist-oriented content to capture new consumer demand.
According to industry reports on November 10, foreign sales at Lotte Department Store's Busan branch increased by 130% from January to October this year compared to the same period last year. Lotte Mall East Busan saw a 165% rise, while the Jeonju branch in North Jeolla Province experienced an 80% increase. Shinsegae Department Store also reported a 121% increase in foreign sales at its Daegu location and a 102% increase at its Busan Centum City branch. This indicates that foreign consumer spending, previously concentrated in Seoul's major tourist areas, is now expanding to large retail facilities in Busan, Daegu, and Jeonju.
The shift in the regional retail market is largely influenced by the diversification of entry routes for foreign tourists. According to the Ministry of Culture, Sports and Tourism, 3.24 million foreign tourists arrived at regional airports from January to September this year, a 37.4% increase compared to the same period last year. Additionally, 1.58 million foreign tourists entered through non-capital ports, marking a 14.5% rise. During the same period, card spending by foreign tourists in the tourism sector reached 15.94 trillion won, a 47.7% increase.
As tourism spending surges in regional areas, major retail companies are accelerating efforts to enhance store competitiveness. Regional stores, which have traditionally focused on local residents and domestic tourists, are transforming into spaces that combine tourism, culture, and experiences to attract foreign tourists.
Lotte Department Store plans to focus investments on key stores in the Busan area. The Busan branch recently completed renovations of its intellectual property (IP) specialty section and food court, with plans for a gradual overhaul of the entire store. Lotte Mall East Busan aims to strengthen tourist-specific content, while the Gwangbok branch will expand promotions tailored for foreign visitors.
Shinsegae Department Store envisions developing the Centum City area in Busan into a massive tourism and shopping hub. Last month, Shinsegae announced its acquisition of Lotte Department Store's Centum City location. The Daegu Shinsegae is also undergoing a major renovation to celebrate its 10th anniversary.
K-Beauty spending, a popular shopping category among foreign tourists, is also increasing across regional areas. According to CJ Olive Young, foreign sales at its stores in Gangwon Province rose by 109.2% from January to September this year. During the same period, sales increased by 83.4% in South Gyeongsang, 83.1% in Busan, 73.3% in Sejong, 66.7% in North Gyeongsang, 58.3% in North Jeolla, 53% in Jeju, 40% in Ulsan, and 36.8% in Daejeon. This indicates that foreign purchases of cosmetics are expanding not only in specific tourist cities but also in various regional cities.
Tourist spending is also benefiting local restaurants. According to the Jeju Tourism Organization, Chinese tourists spent 6.6 billion won at general Korean restaurants in Jeju during the second quarter of this year, a 55.8% increase compared to the same period last year. While domestic tourist spending in Jeju decreased by 1.5% in the first half of this year compared to the same period last year, spending by foreign tourists increased by 44.4%.
Park Jeong-eun, a professor of business administration at Ewha Womans University, noted, "Just as Koreans are exploring regional cities beyond Japan's major urban centers, foreign tourists are showing a similar trend in their travels to Korea. For regional economies to continue growing, it is crucial to discover products and goods that reflect local characteristics and connect them with tourism content to consistently attract visitors."
* This article has been translated by AI.
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