With an early May holiday stretch approaching, shares tied to hotels, casinos and duty-free shopping have been climbing on expectations of a travel boost. The gains come as foreign visitor numbers to South Korea have been rising, adding to optimism for a holiday-driven pickup in tourism and spending.
According to the Korea Exchange on the 28th, major tourism and consumer-related stocks including Hotel Shilla, Hyundai Department Store and Lotte Tour Development posted steady gains over the week from the 20th to the 27th, holding up relatively well despite broader market volatility. Hotel Shilla extended its rally to seven straight sessions and closed up 5.31% at 69,400 won, compared with the previous trading day.
The move is widely seen as reflecting expectations that more foreign tourists will arrive during the holiday period. Investors have been encouraged by a recovery in short-haul travel demand, particularly from China and Japan, fueling forecasts that more visitors will come to South Korea over the break.
Industry watchers also view the broader inbound trend as improving. As tourism demand that had been gradually recovering after COVID-19 becomes more evident this year, analysts say expectations are growing for better results across duty-free, hotel and casino businesses.
Some individual names have also drawn attention. GS P&L, which operates its own hotel chain including the Parnas Hotel in Seoul’s Samseong-dong, has seen its share price rise steadily since the 22nd, a move attributed to expectations for stronger hotel demand being priced in.
Securities firms have offered upbeat assessments of the current inbound cycle. Lee Jin-hyeop, an analyst at Hanwha Investment & Securities, said, “The current domestic inbound cycle is better than Japan’s cycle in 2023 to 2024,” citing signs of a recovery in China’s economy this year and a stronger yuan reflecting that trend.
Still, some in the market cautioned that the post-holiday trajectory will matter. With part of the holiday optimism already reflected in prices, the key variable for share performance will be whether actual tourist arrivals and spending meet expectations.
* This article has been translated by AI.
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