Korean Wave Makes a Splash with 7.7 Million Tourists as China Leads the Tourism Charge

South Korea’s tourism industry is experiencing a significant revival. The country welcomed 7.7 million foreign arrivals in the first half of the year, a 74% increase from the same period in 2023.

The numbers for the first six months of 2024 reached 91% of what it was during the first six months of 2019.

China led the way with 2.2 million visitors, followed by Japan with 1.4 million, Taiwan with 680,000, and the U.S. with 640,000.

One contributing factor to this surge is also the return of Chinese group tours. The proportion of Chinese tourists entering Korea on group tour visas has risen to nearly 12%, mirroring pre-pandemic levels. Travel policies, such as visa-free entry for Chinese nationals transiting to a third country, have also played a role.

Korea’s appeal to Chinese tourists remains strong. Last year, the country became the second most popular foreign destination for Chinese travelers after Japan. Economic uncertainty in China has made short, affordable trips to Korea even more attractive. Round-trip flights from Beijing or Shanghai to Seoul are around $178 for mid-August.

Dragon Trail’s Chinese Outbound Travel Trade Survey, released on Tuesday, highlights that travel costs have become the main barrier to selling outbound trips this year.

Arrivals In June Reach 96% of 2019 Levels

The country’s monthly arrivals for June reached 1.42 million foreign tourists, reaching nearly 96% of pre-pandemic levels. China remained the top source market for tourists with 397,000 arrivals in June, followed by Japan with 258,000, U.S. ranked third with 152,000, while Taiwan arrivals reached 144,000.

The June tourism arrivals from the U.S. and Taiwan have surpassed pre-pandemic levels. American tourists exceeded their 2019 numbers by 44%, while Taiwanese arrivals shot up by 22%.

Japan and China, traditionally strong markets for Korean tourism, are also showing strong recoveries. Arrivals from Japan reached 91% of pre-pandemic figures, while visitors from China hit 84%.

The ‘Hallyu Wave’

Earlier this month, South Korea announced K-pop girl group NewJeans as its tourism ambassador, joining the ranks of BTS, Lee Jung-jae, EXO, Son Heung-min, and Cha Eun-woo. The tourism ministry aims to capitalize on their influence among younger audiences.

Korea welcomed 11 million foreign tourists in 2023, nearly four million of whom were aged 30 or younger. Of these younger visitors, 32% traveled primarily for Hallyu (Korean wave) content.

In 2023, international visitor spending in the country reached KRW 24.3 trillion ($17.5 billion) and domestic spending climbed to KRW 34.45 trillion ($25 billion).

The Challenges

However, the influx of tourists brings challenges. The government announced it would be taking action to eliminate “dumping tours” — low-cost packages that prioritize shopping over sightseeing, from where they earn commissions from vendors. These have been a major source of tourist complaints.

An earlier survey of nearly 3,100 Seoul travel packages sold on four major online platforms in China revealed that 85 of the 100 lowest-priced packages were likely promoting dumping tours. Of these 85 tours, 45 included six to eight shopping trips during a five-day tour, with the package tours priced lower than the combined cost of airfare and accommodations.

The ministry’s crackdown on these practices began this month. Travel agencies violating the new guidelines face administrative measures. The Korean government aims to improve the quality of tourism for visitors.

WTTC Projects A Stellar Year for South Korea

For its part, the World Travel & Tourism Council (WTTC) expects visitor contributions to the national economy to reach a record KRW 96.2 trillion ($69.5 billion) this year, a 13.6% increase from last year.

Employment in travel and tourism is also set to break records, with job numbers anticipated to exceed 1.4 million in 2024. The WTTC projects international visitor spending to match 2019 levels, reaching nearly KRW 31.9 trillion ($23 billion). Domestic visitor spending is expected to rise to KRW 35.5 trillion (25.6 billion), reflecting over 7% increase from 2019 levels.

Looking ahead, the WTTC forecasts that by 2034, Korea’s travel sector will significantly boost its annual GDP contribution to KRW 130.9 trillion ($950 billion), accounting for nearly 5% of the national economy. Employment in the sector is expected to exceed 1.8 million jobs.