The number of foreign tourists visiting South Korea has surged to record levels, and per capita spending has also increased, shifting the long-standing deficit in the tourism balance. As foreign tourist numbers and tourism revenue rise, domestic spending on overseas travel has decreased, increasing the likelihood of an annual surplus for the first time in 26 years.
According to the Bank of Korea and other sources, the monthly tourism balance recorded a surplus of $260 million in March, marking the first surplus since November 2014. This was followed by surpluses of $160 million in April, $220 million in May, and $600 million in June, resulting in four consecutive months of profit.
Despite a cumulative tourism deficit of $12.6 billion in the first half of the year, this is a significant improvement compared to a deficit of $54.3 billion during the same period last year, a reduction of $41.7 billion. If the monthly average surplus exceeds $210 million in the second half, it could lead to an annual surplus for the first time since 2000. Given that the average monthly surplus from March to June was $310 million, this scenario is considered feasible.
The improvement in the tourism balance is attributed to the simultaneous increase in the number of visitors and per capita tourism revenue. In the first half of this year, 10.71 million foreign tourists visited South Korea, a 21.3% increase compared to the same period last year, marking the highest number for any first half. In June alone, 1.99 million people visited the country.
Per capita tourism revenue for foreign visitors also rose to $1,270.4 in the first half, a 12.4% increase from the previous year and 3.7% higher than the same period in 2019, before the COVID-19 pandemic. This indicates that not only has the number of visitors increased, but individual tourists are also spending more during their stay.
Consequently, tourism revenue for the first half reached $13.61 billion, a 36.4% increase compared to the same period last year. In contrast, domestic spending on overseas travel decreased by 3.5% to $14.87 billion. Although the number of outbound travelers increased by 2.7%, per capita spending on overseas tourism fell by 6.0%.
The expansion of high-value consumption in areas such as medical and beauty services has also contributed to the rise in per capita tourism revenue. In the first half of this year, foreign medical spending reached approximately 1.193 trillion won, a 59.1% increase from the previous year. Additionally, foreign credit card spending for tourism amounted to 10.389 trillion won, a 50.8% increase, surpassing 10 trillion won for the first time in the first half of the year.
There are signs that foreign tourism demand is beginning to spread beyond Seoul. The rate of foreign visitors to regional areas increased from 31.4% in the second quarter of last year to 34.2% in the second quarter of this year. In the first half of the year, the number of foreign arrivals at regional airports reached 1.963 million, a 42.2% increase compared to the same period in 2019, while arrivals at regional ports increased by 63.8% to 1.016 million.
However, there are still variables that could affect the transition to an annual surplus. An increase in the value of the won could raise travel costs for foreigners, or a recovery in domestic demand for overseas travel could reduce the surplus. Connecting the increased number of visitors to high-value consumption and regional tourism is seen as a key challenge for structurally improving the tourism balance.
* This article has been translated by AI.
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