South Korea Tourism Surplus Hits $220.5M in May Despite Lower Spending

South Korea's tourism sector recorded a $220.5 million surplus in May, marking the third consecutive month of positive tourism balance, according to data released by the Korea Tourism Data Lab on July 10. The surplus resulted from a record influx of foreign visitors driven by K-content popularity and a weakened Korean won. However, experts note that while visitor numbers have increased, the average length of stay and per-capita spending remain below pre-COVID-19 levels, highlighting the need to shift focus from quantity to quality in tourism growth.

Japan faces challenges from excessive tourism, with the former capital Kyoto overwhelmed by visitors and barriers erected in front of a Mount Fuji convenience store that became a popular photo spot. Starting this month, Japan began charging all departing travelers a tripled departure tax of 3,000 yen, with revenues earmarked for addressing overtourism.

Japan Built Tourism Foundation Through Domestic Travel Infrastructure

Japan reached 30 million annual visitors in 2018, achieving 11 years ahead of schedule what South Korea has set as its 2030 target. Japan subsequently raised its 2030 goals to 60 million visitors and 15 trillion yen in tourism consumption.

Lee Hoon, a professor at Hanyang University's Graduate School of International Tourism, noted that Japan only began surpassing South Korea in foreign visitor numbers about 10 years ago. "What Japan had developed earlier was domestic tourism by its own citizens," Lee explained. "Because domestic tourism was already active, regional tourism infrastructure and content were well-developed. Since the mid-2000s, they created tourism promotion laws and established a feedback system where the prime minister directly reviews and evaluates KPIs, similar to our National Tourism Strategy Council."

According to a March report by the Korea Tourism Organization's Tokyo office, Japanese domestic travel is projected to account for 307 million trips out of a total 322.5 million trips this year, representing over 95% of all travel. The report emphasized that "this figure is approximately 21 times the projected 15.5 million overseas travelers, proving that the essence of Japan's tourism market remains domestic-focused."

Seoul Accounts for 75.7% of Foreign Visitor Traffic in Q1 2026

Experts emphasize the importance of monitoring per-capita spending and length of stay. Japan Tourism Agency's International Visitor Survey (IVS) showed that in 2025, Japanese tourists spent an average of 228,782 yen (approximately 2.12 million won) per person.

According to the Hyundai Research Institute, South Korean tourists spent an average of $1,156 per person in 2025, down from $1,185 in 2019, indicating limited qualitative recovery.

Regional concentration remains a limiting factor. The Q1 2026 preliminary figures from the "Survey on Foreign Visitors to Korea" show Seoul commanding 75.7% of foreign visitor traffic, up 0.7 percentage points from Q1 2025. Busan followed with 16.6%, while Jeju and Gyeonggi each recorded 10.0%. The combined total of these three regions falls short of Seoul alone.

Experts Recommend Multi-City Tourism Routes to Increase Visitor Spending

Experts argue that expanding travel routes beyond Seoul to include Busan, Jeonju, and other regions would naturally increase length of stay and boost spending on accommodation, dining, and experiences.

Japan has already established a standardized "Golden Route" connecting Tokyo, Osaka, and Kyoto.

Jung Ran-su, director of the Future Tourism Strategy Research Institute, stated: "The government is considering policies to attract regional tourists and extend their stays. We need a strategy that connects tourism as a single journey from entry, transportation, accommodation, dining, shopping, to experiences. Multiple policies must be woven together like threading beads on a string."

FAQ

What was South Korea's tourism balance in May? South Korea recorded a tourism balance surplus of $220.5 million in May, marking the third consecutive month of positive balance according to Korea Tourism Data Lab data released on July 10.

How does South Korea's tourism performance compare to Japan's? Japan reached 30 million annual visitors in 2018, achieving 11 years ahead of schedule what South Korea has set as its 2030 target. In 2025, Japanese tourists spent an average of 228,782 yen per person, while South Korean tourists spent $1,156 per person, down from $1,185 in 2019.

What percentage of foreign visitors to South Korea stay in Seoul? According to Q1 2026 data from the Survey on Foreign Visitors to Korea, 75.7% of foreign visitors stayed in Seoul, up 0.7 percentage points from Q1 2025. Busan accounted for 16.6%, while Jeju and Gyeonggi each recorded 10.0%.

Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments