Foreign tourists have led the growth of South Korea's accommodation market over the past three years. As demand from international visitors rises, the share of accommodations outside the capital region is also increasing. Local attractions, including K-pop concerts and professional baseball games, are significant factors driving overnight stays.
On August 27, at the '2nd Current Trends in Korean Tourism Data Seminar' held at The Plaza Grand Ballroom in Jung-gu, Seoul, Lee Hyun-jung, a deputy director at the Korea Tourism Organization's Tourism Data Hub, presented an analysis of accommodation travel using data from mobile communications, booking systems, credit cards, and lodging permits. The analysis covered the period from June 2023 to May 2026.
The findings revealed that in the past year (June 2025 to May 2026), domestic tourists accounted for 85.4% of total accommodation, while foreign tourists made up 14.6%. Although domestic visitors still dominate the market, the growth rate for foreign tourists has been significantly higher.
Overall accommodation volume increased by 5.1% compared to three years ago. During the same period, domestic accommodation grew by only 1.9%, while foreign accommodation surged by 29%. The growth rate for foreign stays jumped from 4.8% in the previous period to 23.1% in the last year.
Foreign tourists are also expanding their stays beyond the capital region. The share of foreign accommodation outside the capital increased from 39.5% three years ago to 43% in the past year.
In Busan and Jeju, the share of national accommodation rose by approximately 30%, while Gyeongbuk saw a 14.2% increase. In Gyeongbuk, cities like Andong and Gyeongju contributed to this growth. Andong benefited from improved accessibility due to KTX connections and attractions like traditional guesthouses and night tours, while Gyeongju's rise in recognition from international events and its historical and cultural tourism resources boosted accommodation demand.
Although the share of accommodation in Seoul, Incheon, and Gyeonggi decreased, the total volume did not decline. Both the capital and non-capital regions saw increases in foreign accommodation, leading to a relative decrease in the capital's share as travel destinations diversified.
The relationship between regional tourism content and accommodation spending was also confirmed. Incheon’s Jung-gu was noted for its accessibility to the airport and major performance venues, while Seogwipo in Jeju attracted visitors with luxury hotels, resorts, and condos. Haeundae in Busan benefited from high-end hotels and marine and night tourism, while Seocho in Seoul saw increased accommodation demand from medical and beauty tourism.
Criteria for choosing accommodations are also changing. Demand for large leisure facilities near accommodations, such as golf courses, hot springs, and water parks, is rising, moving away from independent facilities like spas and whirlpools that were popular during the COVID-19 pandemic. The experiences available at travel destinations are becoming more influential in accommodation choices.
K-pop concerts exemplify this shift. A comparison of accommodation bookings during weeks with and without K-pop performances showed a 12.8% increase for domestic tourists and a 20.9% increase for foreign tourists.
Specifically, analyzing performances by BTS, BLACKPINK, and Stray Kids revealed a staggering increase in accommodation bookings, with domestic bookings rising by 99.4% and foreign bookings by 619%. This indicates that fans traveling to see these performances are translating their interest into actual accommodation demand. The organization believes that once a concert is confirmed, the fan base likely to visit becomes clear, making it effective to promote local accommodation and tourism products through social media and community platforms.
Professional baseball has also boosted local accommodation demand. Compared to days without games, accommodation bookings on game days increased by 13.9%, with a rise of 41.3% during the postseason.
This effect was particularly pronounced outside the capital region, where game day bookings increased by 20.5%, compared to just 4.9% in the capital. With 60 to 80 games held annually at non-capital stadiums, including weekday games, this creates a sustained demand for accommodation rather than just one-time events. In Changwon, packages combining baseball viewing with local tour passes were introduced, while Gwangju offered bundled deals for game tickets, train tickets, and hotels.
However, the analysis indicates that strategies to increase accommodation demand must vary by region. Areas like Seoul and Gyeonggi, which experience relatively steady demand year-round, require different strategies compared to regions where demand peaks in specific seasons, such as expanding supply or developing off-season content.
Lee stated, "Each region has different conditions and characteristics in the accommodation market, so precise diagnostics and tailored strategies are necessary. Data can be used not just to show the current situation but also to find answers on who, when, and why to persuade visitors of a region's appeal."
The Korea Tourism Organization plans to launch a 'Accommodation Travel Status' menu in December on the Korea Tourism Data Lab, allowing users to explore the current state of the accommodation market by region.
* This article has been translated by AI.
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