Chinese Tourist to Korea keep Increasing while the number of Japanese tourists visiting Korea has plummeted

Up until 2012, Korea saw the most number of visitors from Japan, China and the United States, in that order. But since 2013 the order changed to China, Japan, and the United States. A survey showed that 4.32 million Chinese tourists came to Korea in 2013.

As the number of Japanese tourists has dropped sharply in the wake of the earthquake, tsunami, territorial dispute and the yen’s steep depreciation since late 2012, a cosmetics stores in Seoul's Myeongdong shopping district that would normally be thronged with Japanese tourists was noticeably replaced by Chinese tourists.

Increase in purchasing power of Chinese tourist and the current state of the deepening depreciation of the yen overlap in the last two years, the atmosphere of the Myeong dong shopping district has changed completely.

According to the Korea Tourism Organization, the number of Chinese travelers to South Korea from January to July this year was 3.36 million, an increase of 45.8% compared to last year. In contrast, around 1.33 million Japanese tourists visited Korea until july this year which fell 13.68 percent from the previous year.

Last year Chinese tourists generated roughly 13 billion dollars in economic effects for Korea. They left particularly extensive impacts on all tourism-related businesses, such as retail shops, lodging, and even food and beverage establishments. Thanks to the surge in Chinese tourists, Korea’s tourism industry posted record high revenue of 1.62 billion dollars in July. In anticipation of the Chinese crowd, three major department stores in Seoul have changed their Chuseok schedules and decided to remain open through the long holiday weekend, except on the day of Chuseok. Moreover, as the Incheon Asian Games has just started and China celebrates another week-long holiday in October, Korean businesses are getting ready to welcome an influx of Chinese visitors. However, the downside is that the rates of satisfaction and return visits remain low among Chinese tourists. The Korea Tourism Organization found in a survey that Chinese tourists registered 4.11 points on satisfaction, resting at 14th place among 16 countries. When asked whether they’d be willing to revisit Korea for tourism within the next three years, Chinese respondents also scored 3.95 points, among the lowest tier.