SEOUL, September 30 (AJP) - Korea, grappling with yawning travel deficit, pins high hopes on the temporary visa waiver for Chinese group tourists to aid the balance sheets of the government as well as domestic retailers.
The travel balance of payments in the national current account has been in the red since 2000 as more go out and spend than those coming in. The deficit totaled $7.2 billion as of July this year, slightly eased from $7.9 billion a year earlier on the rise of foreign arrivals.
The red however is expected to deepen in the fourth quarter as this year's Chuseok Thanksgiving holiday extends up to 12 days. During the nine-day Lunar New Year holiday in January, the deficit ballooned to $1.68 billion. As many as 1.1 million are expected to leave the country for overseas during the upcoming holiday break.
The number of Koreans traveling abroad during the extended Chuseok break has surged by around 80 percent compared with last year. Demand for short-haul destinations stood out, with 62 percent of flight bookings concentrated on routes to Japan and key Southeast Asian countries.
The government has introduced a visa waiver program for Chinese group tourists on Monday, timed with China's Golden Week merging the Mid-Autumn Festival and National Day. The program, available until June 30, 2026, allows groups of three traveling through authorized agencies enter Korea without a visa.
"It feels like reuniting with an old friend," said 24-year-old Chinese readying a trip to Korea. She had studied in Korea and wished to return because of the "feeling of emptiness."
The government estimates the new visa-free policy could bring in an additional 1 million Chinese tourists in the first half of next year. If the trend continues, total foreign arrivals in Korea could surpass 20 million for the first time by the end of 2025.
Chinese group tourists used to be the bedrock to Korea's tourism industry. Chinese arrivals peaked at 8.07 million in 2016 before shriveling to 170,000 in 2021 amid diplomatic spat over Korea's installation of a U.S. antimissile system and pandemic.
The number recovered to 4.6 million last year and 3.13 million in the January–July period. The numbers however did not translate into past boon for retailers. Individual travelers opted to explore the country than go on a shopping spree here. The government hopes the full return of Chinese group tourists may do the magic.
Korea came first as the top travel destination for the Chinese in their Golden Week, according to Trip.com booking data release.
"The industry expects the government's visa waiver program for Chinese group tourists to support a rebound in duty-free sales," an official from Hyundai Department Store Duty Free said. "We are expanding services to enhance convenience for Chinese visitors, including matching our membership tiers with Alipay and WeChat Pay to provide immediate discounts year-round."
By contribution by Hoang Phuong Ly
Copyright ⓒ Aju Press All rights reserved.
